Individual retirement accounts (IRAs) are a normal part of the American investment landscape thanks to very accommodating federal and state laws. Now, as other types of investments are not yielding nearly as much, people are coming to realize they can have an IRA backed by gold. The best thing about it is you can use your current cash IRA to fund a new gold IRA. You do this by rolling over.

Completing a gold IRA rollover is fairly easy. All you need to do is contact your current IRA custodian, fill out the paperwork, and complete the transaction depending on which option you to choose. You can choose to do a traditional rollover or a transfer.

Traditional Gold IRA Rollover

According to the law, a rollover transaction involves the account holder receiving the IRA funds directly from the custodian. Those funds are presented in the form of a check made out to the account holder, which would be you in this case. You would then have 60 days to reinvest those funds in the new gold IRA. If you fail to rollover within the 60-day period, you are liable for both taxes and penalties.

The advantage of a traditional rollover is that it gives you time to search for a new gold IRA custodian. In other words, you could cash in your current IRA right now and then spend the next two months looking for a goal IRA you’re happy with. When you are ready to invest, you simply send those funds to your new IRA custodianwho buys gold on your behalf.

The Gold IRA Transfer

If you already have a gold IRA custodian, the easiest way to complete the transaction is a transfer from your current IRA into your new gold IRA. All that’s required is your signature and the pertinent information about your new gold IRA custodian. Once you fill out the paperwork, your current custodian will transfer funds to your new custodian. That’s all there is to it.

The advantage of the transfer is that it takes all of the worry and hassle out of the process for you. The transfer is instant as well, eliminating any potential risk of penalties and taxes you might otherwise have incurred had you not completed a rollover in 60 days.

how to complete a gold ira rollover

Buying Gold

When you complete your gold IRA rollover, your new custodian will then purchase gold on your behalf. You can buy actual, physical gold or gold certificates. There is an important difference between the two.

When you buy actual, physical gold, you are purchasing something like gold bars or coins. That physical gold is then stored for you in an IRS repository where it will remain until you reach retirement age 59 1/2. At that point, the gold is released and shipped to you for your own safekeeping.

When you purchase a gold certificate, you are actually purchasing a legal document that states you have ownership in a gold company. When you reach retirement age those certificate are converted into physical gold, which is then shipped to you.

In either case, your IRA custodian handles all the transactions for you. He will purchase the gold or certificates, he will make sure any physical gold is deposited with the federal government, and he will make sure gold is shipped upon your retirement.

Being able to invest in gold for your retirement is a very attractive option for many investors. The time for you to consider gold is right now. Get started with a new gold IRA before you invest another dime in any other opportunities.