Gold IRAs are a popular way to invest in gold, but many investors don’t know how to roll over their existing IRA into a gold-backed retirement account. This guide will walk you through the steps of rolling over your current IRA into a gold IRA.
What Is a Gold IRA?
A gold IRA is a self-directed Individual Retirement Account (IRA) that invests in physical gold, not stocks and bonds. There are two types of gold IRAs: Paper Gold IRAs and Physical Gold IRAs. A paper gold IRA is an investment where you buy shares in an exchange-traded fund (ETF), which holds physical gold or other precious metals. A physical gold IRA invests in actual bars or coins of precious metal.
What Is an IRA Rollover?
So, we learned what is a gold IRA, now let’s see what is a gold IRA rollover? Gold IRA rollover is a process by which you transfer an existing retirement account into a different type of retirement account. There are two types of IRAs: traditional and Roth. In order to roll over your current IRA into a gold-backed retirement account, you must have both types of IRAs set up.
You can roll over your existing IRA into a gold-backed retirement account, but you must first have a traditional and a Roth IRA set up. You can also roll an existing 401(k) plan into your new gold IRA, or transfer funds from another financial institution such as a bank or brokerage firm.
If you already have a traditional IRA set up, it’s easy to roll over your existing retirement account into a gold-backed retirement account. All you need to do is complete the paperwork for the new IRA with your financial institution and let them know that you want to add gold bullion as an investment option.
If you’re looking for a new retirement savings account that will protect your money from inflation and provide a solid investment opportunity, consider opening a gold-backed IRA. You’ll be able to diversify your portfolio and protect yourself against economic downturns while still enjoying the benefits of tax-deferred growth.