Precious Metal Rollover IRA Explained
An IRA (Individual Retirement Account) is a retirement plan for individuals to save for the future when they retire from the workforce. The IRA was essentially designed for self-employed people since they don’t have 401(K) access as it’s only available through an employer.
A traditional IRA only lets individuals store stocks, bonds, cash, or ETFs (Exchange Traded Funds). You’ll need a precious metal IRA if you want to invest in precious metals. Let’s take a look at what it is.
What is a Precious Metal IRA?
A precious metal IRA also allows individuals to hold precious metals in their retirement savings. Precious metal IRAs were introduced after the Taxpayer Relief Act of 1997, which allowed individuals to hold physical assets in their retirement plans. However, not all metals are allowed in precious metal IRAs. Only gold, silver, palladium, and platinum can be held in a precious metal IRA.
What is a Rollover IRA?
When you convert your current IRA plan into another, it’s referred to as a rollover IRA. For example, if your IRA is through an employer and you’re switching jobs, you can roll over your assets in the current IRA to a new IRA plan. Similarly, you can roll over your current traditional IRA into a precious metal IRA.
There are 3 ways to complete IRA rollovers:
1. Direct Roll Over
In direct rollovers, your IRA administrator will directly issue a check to your chosen IRA. There’s no tax withholding from this method of roll over.
2. Trustee-to-Trustee Roll Over
In this method, the trustee of your former IRA can help you roll over your savings into a new IRA. This method also doesn’t withhold any tax.
3. 60-Day Roll Over
A check for your savings is issued to you and must be submitted into a new IIRA before 60 days. If you exceed the time limit, the tax will be withheld from your savings.
The rule for Precious Metal IRAs
If you’ve planned to invest in precious metals, you must decide how . There are plenty of options to invest in, including precious metal stocks, EFTs, futures, or physical forms.
The IRS forbids individuals from keeping their precious metals at home. If you’re buying tangible precious metals, keep them stored with an IRS-certified storage company. Also, the gold you buy must be certified and minted in the US.
If you’re looking for a reliable precious metals investment company in the United States, look no further than Orion Metal Exchange.
We deal on the American Eagle Exchange and have a 5-star rating on TrustPilot and can help you roll over your traditional IRA into Precious Metal IRA. We also offer gold, silver, platinum, and palladium products for investment purposes. Get in touch with us now for more information.