401k to Gold IRA: How a Gold IRA Rollover Works

Investors and retirees conflate a rollover and a transfer.

The IRS sees a clear difference between a rollover and a transfer.

A rollover has the investor or retiree get the money rolled over to the investor or retiree directly.

A rollover has the investor or retiree roll over the money from his or her bank account into the gold IRA account him or herself.

A transfer has the original 401k retirement plan IRA custodian transfer the funds to the gold IRA custodian directly.

A transfer doesn’t have an investor or retiree see any funds in his or her bank account directly.

A transfer has the investor or retiree see the funds in his or her 401k retirement plan and see the money in his or her gold IRA account directly after.

A transfer doesn’t have the intermediary step of a personal bank account.

A custodian-to-custodian transfer is a frequently used funding method for starting a self-directed gold IRA.

An IRS-approved IRA custodian establishes a new gold IRA account. An IRS-approved IRA custodian transfers the IRA assets from an investor’s or retiree’s existing 401k retirement account into a gold IRA.

A gold IRA custodian accepts funds from an investor’s or retiree’s existing IRA account.

A gold IRA custodian invests funds in line with the vision of asset protection of the investor or retiree, via the gold IRA account.

When an investor or retiree chooses a rollover, an investor or retiree frequently prefers a direct rollover instead of an indirect rollover.

An indirect rollover has withholding requirements.

An indirect rollover has the risk of an early distribution penalty….(read more)

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