It is not hard to make a case for switching over to a form of self-directed IRA known as a Gold IRA, which will allow you to include gold and other precious metals within the account.
If you’re looking for a retirement plan with choices outside of the norm, then look no further than your Self-Directed IRA. With this account type, investors have access to options like real estate investments and precious metals and more traditional assets such as stocks and bonds.
Your account cannot transfer into an ineligible retirement account type when it comes to IRA transfers- for example. Traditional IRAs cannot be put into a Roth IRA without performing a ‘Roth Conversion.’
The simplest way to understand a gold IRA rollover is like an automatic transfer from one retirement plan administrator to the next. Simply fund your new self-directed account by rolling over or transferring money out of your current account into this new one, and you’re all set.
The other way to move your money from the old account to the new account is by directly transferring it yourself.
This is called a 60-Day rollover by the Internal Revenue Service and is described on their official website. It starts by receiving the distribution of money directly in the form of a check that has been paid out. You will need to deposit the money into a new account in 60 days or less. The countdown starts from the moment you actually receive the distribution.
In certain specific cases, the 60-day rollover limitation might be waived if you missed your critical deadline due to a situation outside of your control.
There are three ways to get an exception for this rule:
You might qualify for an automatic waiver if all of these things happen to you:
Keep an eye on your deadline if you want to avoid financial penalties. If the transfer is not complete in time or there’s a waiver, then funds will become fully taxable and subject to taxes plus a 10% penalty for early withdrawal (unless they were taken out of Roth IRA).
If you’re considering an IRA transfer, your initial consideration should be whether or not it is right for you. One of the major benefits of a transfer is that they are easy and low-hassle because there aren’t any limits on how many transfers can take place in a year’s time from one account custodian.
However, this convenience does come with some downsides. Namely, suppose someone wants to move their money back quickly after transferring without Warning beforehand. In that case, they will likely have difficulty finding out when deadlines are approaching due to being dependent upon the old custodian’s schedule.
An IRA rollover is a process in which you move your funds from your retirement account to another financial institution. If you need the money fast, this option might be better for you since it’s typically faster than an IRA transfer. They also grant you the right to hold the money for 60 days before rolling it back into a retirement account.
This content was originally published here.