At this stage, you must pay all income taxes. Most gold IRA companies recommend or require that you work with a specific custodian and custodian, although some give you a choice of two or more. To avoid the possibility of having to pay taxes and penalties, your Gold IRA company can process the transfer on your behalf. A gold IRA offers a unique opportunity to invest in gold while taking advantage of the tax benefits and long-term growth potential of an IRA.
chosen Gold IRA company will help you get started by reaching out to your plan administrator with a request to transfer funds to your new Gold IRA. As factors are constantly evolving and prices fluctuate by market, call Allegiance Gold directly to get live prices and find out how you can liquidate your precious metals from an IRA or personal investment. A key selling point that gold IRA companies like to tout in their marketing is that if you own a gold IRA, you own the physical precious metals. Gold IRAs will help diversify an individual’s retirement account and serve as a hedge against specific financial factors.
You can’t add gold or precious metals to your Gold IRA yourself, even if you already own IRA-eligible metals or plan to buy them for investment purposes. A common way to fund a new Gold IRA account is to use funds that are already in another retirement account, such as another IRA, 401 (k), 403 (b), 457 (b), or Thrift Savings Plan, in accordance with IRS rules. Yes, you can take physical possession of the gold in your Gold IRA, but there are certain rules and regulations for this process. Before you initiate the transfer, it’s important to calculate how much of your existing retirement savings you’d like to invest in your new Gold IRA.
It’s important to consult a tax professional to fully understand the tax implications of investing in a gold IRA. The Internal Revenue Service (IRS) allows holders of self-managed IRA accounts to purchase bars and coins minted from gold or other approved precious metals such as silver, platinum, or palladium. Many people who open gold IRAs use funds from another IRA to do so, but it’s not a good idea to convert your entire nest egg into a gold IRA. A gold IRA company will help you set up your account and sell you the gold (or silver) coins or bars that fund it.
If you want to have your gold valued, it’s usually better to wait until you’ve liquidated your IRA assets and taken possession of your metals.