How to Convert an IRA to Gold and Silver
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If you’re confused about how to convert an IRA account into a gold or silver IRA account, this piece will guide you through the process. Since your IRA already allows you to select the bonds, stocks and funds you keep in it, you can also choose to invest in precious metals. This way you’d be able to physically own the gold or silver you invest in.
However, if you want to change your IRA completely into physical assets, that’s also possible.
If your IRA allows you to choose the stocks you want to invest in, converting into a precious metals account is a seamless process. All you have to do is convert your holdings into paper equivalents for gold or silver.
You could either buy stocks in gold mining companies that offer varying prices that are pegged to the value of the metal. Or you could invest in an exchange-traded fund and make a share of that fund equivalent to the gold or silver holdings.
If you’re keen on physically possessing gold or silver and having it in your IRA, you can do that with a self-directed IRA. Self-directed IRAs offer investors a freehand in the investment choices they make. A traditional IRA is restrictive in this scope. As long as you’re complying with the IRS laws, you can physically hold any precious metal in your self-directed IRA.
Rolling Over funds
In order to convert your IRA funds into physical silver or gold, you first need to roll your funds to a self-directed IRA from a traditional IRA account. The Internal Revenue System allows you to roll over your IRA funds annually. The only condition is that funds should transfer from the first IRA to the second IRA within a span of 60 days. This way, you’ll be exempt from any taxes or avoid any transfer penalties.
Buying your Bullion
Once you’re clear about how to convert your IRA into physical holdings for gold and silver, the next step is to find a reliable dealer. If your self-directed IRA is funded, the custodian can transfer the payment for bullions or bars directly to the investment company and the gold/silver will be deposited in your IRA.
Since the IRS doesn’t allow investors to reserve physical possession of the metals, they can be preserved safely in your IRA. Give us a green signal once you’re ready to go!