Gold IRA Rollover Rules

If you have never invested in gold IRAs before, there are different methods available to you to start a Gold IRA. The two common methods in Gold IRA investing are by transfer or rollover.

Gold IRA Transfer

The first alternative to be considered is transfer. This is easy to do and can be done at any time subject to the plans are being transferred from custodian to custodian and not to you directly. This means that when you transfer from one custodian to another, the check is made out in the name of the transferee custodian of the new Gold IRA. If the check is made in your name, you are liable for the applicable taxes.

Once you approach the new Guardian for investing in a Gold IRA, they will do all the paperwork needed to effect the transfer. Subject to the Gold IRA guidelines, there is no bar to carrying out as many transfers as you wish. Clear all doubts upfront because once the transfer is effected there is no going back to status quo.

Gold IRA Rollover

The next method you can use for Gold IRA investment is by a rollover. With this method you get the money from your existing retirement accounts and then deposit it into another retirement plan. This has to be done within a period of 60 days from the time you receive the money, otherwise, you are subject to taxes and any penalty the IRS may impose.

You are permitted to carry out a rollover only once every 12 months so that the tax benefits of a retirement plan is protected.

At retirement, two options are available to the depositor. In the first the gold is liquidated and the proceeds will be taxed as usual. In the other option you can receive the amount as the gold that was invested. However, whenever the gold is liquidated then 28% capital gains tax plus any other tax has to be paid.

If the income tax rates are low, then the first option is preferred. If the market value of gold is showing an upward trend, then by using the second method and paying the 28% capital gains tax plus the usual taxes, it may yet prove to be more profitable.

Gold IRA investments, if they are done by following all the rules and regulations carefully, is a wise choice and will act as a hedge against the depreciation of paper currency.