Precious metals such as gold and silver can provide portfolio diversification and a hedge against market volatility, inflation, or both. A popular way to plan for a secure retirement is to roll over a 401k. It is now a question of how to establish an IRA that invests in gold. Visit American Hartford before reading this.
The Tax Payer Relief Act of 1997 created an alternative to traditional 401ks. It allowed you to add physical precious metals to your IRA. The permissible metals for a gold IRA are gold, silver, palladium and platinum. All must be bullion bars or coins and of a specified fineness. In a gold IRA, rare coins and other collectables of gold & silver are not permitted. Your precious metals broker is able to help you determine which metals are best for your portfolio.
It is a smart idea to establish an IRA first before making a decision regarding which metals to buy for your Self Directed IRA. Your precious metals broker can contact your current custodian and ask if you are able to add physical metals into your current IRA. Many cases won’t allow precious metals investment due to specific IRA plans. You will then need to start the process for a 401k rollover to a new, golden IRA account.
Your broker will then assist you in selecting a custodian who specializes with dealing with gold IRAs. Once the custodian has been chosen, paperwork will need to completed. These documents will include the amount to be rolled into your new gold IRA account, the beneficiaries, and additional information.
Typically, the process of setting up an IRA for gold investments takes between 3-5 days and a half after it is initiated. Now it’s time to place the metals in your IRA account. Keep in mind that there are certain products that can be placed into an IRA. This information should be provided by your broker.