Transferring money from a retirement account to a precious metal IRA is called a metal rollover.
For instance, when you wish to use money from a 401(k) to invest in gold, silver, platinum, and palladium, you might start a gold 401(k) IRA rollover.
Additionally, you can use equities, precious metals mutual funds, exchange-traded precious metals funds, natural metals, or other assets to fund an IRA.
Top 5 Precious Metals IRA Companies of 2023 at a Glance
- American Hartford Gold: Editor’s Choice – Best Price for Bullion (4.9/5)
- Augusta Precious Metals: Runner up – Great Gold IRA Company Overall (4.8/5)
- Goldco: Great Buyback Program (4.6/5)
- Red Rock Secured: Best at Home Gold IRA (4.5/5)
- Birch Gold Corporation: Great Staff Overall (4.2/5)
#1 American Hartford Gold: Editor’s Choice – Best Price for Bullion (4.9/5)
American Hartford Gold is where you must buy gold bullions. The company had a wide range of gold bars and coins, and the pricing was among the best.
Their customer support was helpful and quick to respond, providing straightforward answers to your problems. They also had lightning-fast shipping times; You got your item in less than two days!
The purchasing process was fantastic; they heartily endorse American Hartford Gold to anyone searching for a reputable supplier of gold bullion.
Pros
- American Hartford Gold offers various product alternatives to satisfy the needs of various investors.
- Clients have confidence in the firm’s dependability and honesty because it has a strong reputation and has been in business for over 20 years.
- Clients have access to various asset classes, allowing for flexibility and diversification in investment.
- Due to American Hartford Gold’s minimal fees and commissions, many investors find it to be a cost-effective option.
- Each customer receives individualized assistance from the business, enabling them to maximize their assets.
Cons
- Some clients have criticized the online platform and features as inadequate compared to some rivals.
- Calls to customer service departments or requests for help may be subject to lengthy waits.
- American Hartford Gold limits the potential for worldwide investors to diversify by providing access to fewer international marketplaces than other services.
#2 Augusta Precious Metals: Runner up – Great Gold IRA Company Overall (4.8/5)
They recently bought several gold coins from Augusta Precious Metals and couldn’t be happier. Both the variety and the cost were excellent. Excellent customer service was provided by competent, amiable personnel.
The order was delivered exactly as promised after being dispatched fast and securely. Anyone looking for high-quality gold coins at a reasonable price should check out Augusta Precious Metals.
Their content editor’s manual is quite comprehensive and educational, describing each process required to produce persuasive content that will draw new clients.
Overall, Augusta Precious Metals has exceeded my expectations, and they wholeheartedly recommend them!
Pros
- Provides safe and secure storage options for precious metals like gold, silver, platinum, and others.
- They provide fair prices for both buying and selling precious metals.
- Customers can choose between delivery and storage at their vaults.
- The website has easy-to-use online ordering capabilities.
- They offer various goods, including coins, bars, rounds, etc.
- Staff members willing to help their customers are accessible to offer professional assistance on purchasing and selling.
Cons
- Not all locations may offer delivery alternatives.
- Some clients think the prices are more expensive than other businesses.
- A minimum purchase is necessary to open an account with the business.
- The shipping cost can periodically increase depending on the size and location of the order.
#3 Goldco: Great Buyback Program (4.6/5)
They advise Goldco to everyone thinking about investing in gold. Goldco offers the knowledge and resources to assist you whether you’re a novice or a seasoned investor.
They provide a wide range of wholly customized items to your needs, ranging from IRA accounts to genuine hip. Because of their low prices, they are an excellent choice for anyone looking for a cheap way to invest in gold.
Everything you need in a gold IRA firm is available when you invest with Goldco: it’s simple, practical, and secure.
Pros
- Provides competitive rates and fees.
- Offers savvy, approachable client service.
- Provides a diverse array of goods and services.
- Encourages investor education by providing valuable materials and seminars.
- Simplified online account management for comfort and simplicity.
- Supports philanthropic endeavors and is committed to contributing to the community.
Cons
- Fewer banking services than those provided by conventional banks or other financial institutions.
- The company’s absence of physical locations or choices for in-person customer support in some regions of the nation or the world may unnerve some investors.
- Not all clients can access every product or service across all states or nations. Thus, some customers may need more investment options due to location constraints or regulations in their place of residence or company operations in the United States or abroad.
#4 Red Rock Secured: Best at Home Gold IRA (4.5/5)
The best at-home gold IRA provider is Red Rock Secured. They provide excellent buying and storing of investment-grade gold bullion and very simple-grade gold bullion.
Making a purchase and creating an account were simple and easy processes.
Additionally, they have reasonable prices, giving you the confidence to choose them. Red Rock Secured has above your expectations and heartily endorse them to anyone wishing to establish a gold IRA at home.
Pros
- The most affordable gold IRA product was available.
- Constantly available for customer and technical assistance.
- They have skilled account managers who offer individualized advice and direction.
- Self-directed gold IRA accounts have no setup costs or yearly fees.
- They provide safe bullion storage in locations that have received IRS approval and give you secure internet access to your assets.
- Process transactions quickly to reduce the lag between deposits and withdrawals.
The ability to invest in various cryptocurrencies via their gold IRA product.
Cons
- Some consumers may find the minimum purchase amounts for precious metals prohibitively high.
- Limited choice of possible investments compared to other businesses offering self-directed IRAs and 401(k)s.
- It does not provide customization choices for its gold IRA product, such as suggestions for the metals most appropriate for your specific retirement portfolio objectives.
#5 Birch Gold Corporation: Great Staff Overall (4.2/5)
The professionalism of Birch Gold Corporation’s team will impress you throughout your recent work with them. They were welcoming and knowledgeable, giving you the tools and knowledge to decide on your investment wisely. The procedure went without a hitch. You’ll also value that they adhered to the editorial criteria outlined to assure the accuracy of our messages.
Pros
- Provides competitive rates for investments in gold.
- Offers precious metals storage that is safe and secure.
- Makes trustworthy, guaranteed shipping and delivery services for customers’ orders.
- Offers flexible terms and a range of payment choices.
- It gives clients the knowledge they require to decide shrewdly regarding their gold investments.
Cons
- The minimum investment is more than that of competitors.
- A limited selection of products is available compared to other businesses in the same sector.
- Higher transactional fees, such as buying, selling, and storing things.
History Of Precious Metal IRAs
Traditional and Roth IRAs permit only cash, bonds, and stocks. Specific forms of precious metals are now permitted investments in individual retirement plans thanks to the Taxpayer Relief Act of 1997. These “self-directed” or “alternative-asset” IRAs are often only available in gold, silver, platinum, and palladium.
More and more people are interested in diversifying their retirement portfolio with precious metals by completing a gold 401(k) rollover as gold and silver continue to outperform the stock market (historically) and increase in value.
Is A Rollover For Precious Metals Secure?
While it’s usually safe to transfer some of your retirement funds from one IRA or 401(k) to a precious metals IRA, you should be looking for frauds that target individuals considering this kind of transaction.
Scammers can more easily operate in the market since the investor manages self-directed IRAs. The U.S. Securities and Exchange Commission warns against precious metals IRA custodians that use bait-and-switch strategies to make unrealistic return promises.
A self-directed IRA can only be opened through a custodian that has received IRS approval, such as a bank or other financial institution.
Scams Involving Rollovers of Precious Metal IRAs
Chris Thomas’ book The Gold IRA Investor’s Guide lists five frauds people fall for while setting up a rollover for a precious metals IRA.
1. Promote gold and bolster numismatic Sales
Numismatic coins are collectors’ coins whose rarity and mint, rather than the price of the precious metals used to make them, determine how well they are preserved. They are not qualified for a precious metals IRA, and scammers will attempt to offer investors these coins rather than bullion made of precious metals.
The American Eagle Silver and Gold coins, to mention a couple, can be included in a precious metal IRA rollover. You can utilize the list of metals JM Bullion has approved for IRAs to help you make investing decisions.
2. Higher Coin Grade or Certification Prices
Some con artists will attempt to charge more for certified or graded American Eagle coins. Investors are persuaded by them that graded coins are better than ungraded ones, and this assertion is untrue.
3. All of Your Retirement Fund Can Be Converted to Precious Metals
Depending on your risk tolerance, a qualified and reputable investing adviser would advise you to invest five to twenty-five percent of your retirement fund in precious metals. An inflation hedge and a diversification tool can be found in precious metals, which might be dangerous investments.
Go somewhere else if a financial expert advises you to invest all of your funds in precious metals.
4. Leveraged Account Opening
Avoid considering it if a bullion salesman tries to get you to open a leveraged account. In a leveraged precious metals IRA, the salesperson lends you the cash to purchase additional precious metals for your IRA. If you do this, you’ll have to repay the loan plus interest and commission on the extra money.
Costs and Commissions that are Excessive
A financial advisor will charge you a commission for their guidance on your precious metals rollover. To find a fair price for your needs, speak with a few brokers. All brokers must be able to locate IRS-approved metals at a fair price and look elsewhere if it seems excessive.
How to Rollover a Precious Metal IRA Safely
Start by forming a self-directed IRA with an IRS-approved custodian, such as a bank or other financial institution, to perform a secure precious metal IRA rollover. Next, identify a broker that can find the gold bullion for you.
Finding a broker with flawless qualifications and a stellar reputation is crucial to ensure your investments are safe and informed. Request recommendations from your custodian and review the broker’s ratings and reputation with agencies like the Better Business Bureau.
The brokerage must be aware that the IRS has purity requirements for the precious metal IRAs, and they must find bullion to satisfy those requirements.
The business can fund the IRA and deposit your funds securely after it has bought the metals.
FAQ- Precious Metals Ira Rollover
1. What is the IRA rollover rule?
A rollover occurs when you take money or other assets from one eligible retirement plan and transfer all or a portion within 60 days to another.
2. Why Must You Transfer or Rollover Your IRA to Purchase Gold?
It is lawful for any IRA to buy gold and other precious metals. Most big custodians, including Charles Schwab, Merrill Lynch, and JP Morgan Chase, do not provide precious physical metals as a means of investment.
Most conventional custodians are set up as managed funds and merely maintain paper assets.
A custodian who offers self-directed IRA investments is typically required for a self-directed investment in precious physical metals.
They can assist you in starting a rollover or direct transfer to a custodian that does if your current custodian does not provide precious metals as an investment choice.
A direct transfer or rollover is a non-taxable event.
3. What Distinguishes an IRA Rollover from an IRA Transfer?
An IRA transfer is a direct way to move funds from one custodian to another. It is typically done via a transfer from the receiving custodian to the releasing custodian after the account holder signs it and requests a partial or complete transfer of IRA cash or assets.
There are no tax repercussions because the money is transferred directly from one custodian to the next.
A rollover is a preferred and most effective technique for transferring funds between like accounts, such as from one Traditional IRA to another. An unlimited number of transfers can be conducted in a single calendar year.
A rollover is typically performed when moving money between two distinct accounts, from a 401(k) to an IRA.
A transfer might be direct or indirect, in which case money is transferred directly from one custodian to another or from one custodian to the account holder. After that, the account owner has 60 days to transfer this money to an IRA or another retirement account.
The money will be taxed and may be subject to an early withdrawal penalty if the account owner doesn’t transfer the money within 60 days. The 60-day rollover is another name for this; one 60-day rollover is permitted every 12 months.
Final Thought – Precious Metals Ira Rollover
Using the correct broker and custodian to administer your account can help you avoid mistakes while converting your investments into a precious metals IRA.
Doing this can avoid expensive errors and ensure acceptable IRS procedures are followed.
Check out our Gold IRA guide if you’re considering a precious metals IRA.