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Individual retirement accounts, or IRAs, are tax-deductible personal savings accounts for retirement. A traditional IRA is a great start, but in today’s economy, you want to have the strongest retirement plan possible. One way to protect your retirement account is through precious metal investments or a gold IRA.
Some are hesitant to take the time to set up a new retirement account. Is it worth it? How long is the process to set up a gold IRA?
Oxford Gold Group is here to answer those questions and more to help you make more informed considerations when considering your plans for retirement.
How Long Does Opening a Gold IRA Take?
A gold IRA allows you to invest IRA precious metals like gold, silver, platinum, and palladium in your IRA. This offers a hedge against inflation, the potential for higher returns, and protection during economic uncertainty.
To open a gold IRA, you must:
- Find a custodian or gold IRA company
- Decide what type of account you want
- Fund your account
- Make your precious metals investments
The length of this process varies depending on your existing portfolio, financial situation, and investment goals. You can apply for an account within fifteen minutes, after which the application will take a few days to process.
From there, the length of the funding process depends on your methods. For example, transfers and rollovers typically take seven to 10 business days. The company you choose will also determine the answer to “How long is the process to set up a Gold IRA?”
Selecting the Right Gold IRA Company
First, select the right company or custodian to work with. Trusting the wrong parties with your gold IRA could mean significant losses. Conduct thorough research about each company you consider.
A gold IRA provider must be transparent. They should share information about their operations, costs, fees, and policies. You can call their customer service line if this information isn’t readily available on a gold IRA provider’s website. They should be ready to answer all of your questions.
When you set up a gold IRA, prepare for fees. These fees will vary from company to company. Compare each company’s costs to determine how to get the best service for the best value. Remember to consider the potential returns on investment, contract terms, penalty and withdrawal fees, and storage options.
Customer Reviews and Reputation
After your initial once-over of each company, look at previous customer experiences. The company will likely have reviews on its site, but you might find more information beyond the site regarding the company’s customer service and responsiveness. When reading customer reviews, look for:
- Consistent themes
- A balance of positive and negative reviews
- How the company responds to feedback or criticism
You should also verify the company’s accreditation and research how long it’s been established. Do this through the Better Business Bureau.
When setting up a gold IRA account, you must arrange your storage. This is where the physical precious metals in your account will securely and safely live. Gold IRA companies should have a secure IRS-approved depository for their physical assets. Ask about how secure your assets are, whether they’ve ever experienced theft and any hidden fees.
Understand How the Account Works
You must understand the ins and outs of your gold IRA account. Knowing how it works allows you to make savvy investment moves and gain higher returns.
Type of Account
First, decide what type of gold IRA account you want. You can open a new account or rollover funds from an existing traditional IRA. There is no right answer — you must decide what works best for your financial situation. When in doubt, consult an expert.
Note that not all custodians and companies support rollover accounts. If this is the option you choose, narrow your options to rollover account-supporting companies only.
You can also choose between a traditional or Roth IRA. You pay taxes on traditional IRAs after withdrawing the money. Meanwhile, you pay taxes on a Roth IRA before withdrawing the money.
Like a traditional IRA, your gold IRA has contribution limits based on age. A contribution limit is the maximum amount you can contribute to your IRA annually. If you’re under 50, your contribution limit is $6,000. Once you are over 50, your contribution limit rises to $7,000.
Storing Your Gold
Having secure storage for your gold and other IRA-approved precious metals is essential. Because the IRS requires that you purchase space at a storage facility or bank, you must never store IRA precious metals at home. Otherwise, you may face severe legal repercussions.
Although you must pay storage and maintenance fees to protect your assets, the security that banks and storage facilities guarantee in return is worth the extra expense. Such fees are usually nominal and are certainly preferable to the alternative.
Many gold IRA companies will have:
- Setup fees
- Annual maintenance fees
- Storage fees
- Withdrawal fees
Fund Your Account
The next step in setting up your gold IRA is funding it. There are two methods to consider.
You can set up an entirely new account and contribute to it. All gold IRA companies allow you to use this method, and you don’t need to worry about the complications of rolling over assets from other accounts.
Rollovers and Transfers
You can also roll over funds from another IRA, 401(k), or other retirement plan.
However, if you’re rolling over funds, you must check whether your retirement plan allows in-kind transfers. In-kind transfers let you transfer the same asset (such as stocks or bonds) from one account to another without selling them first. If you have to liquidate your assets first, this could prolong the process.
Note that transferring funds from a traditional IRA account (a pre-tax account) to a Roth IRA account (post-tax) has tax implications. You might owe income tax on the transferred money.
Selecting Your Metals
Next, select which precious metals you want to invest in your gold IRA. You can choose from:
To meet IRS regulations, regardless of the metal you choose, it must have 99.5% purity. You can invest in bars and coins from any accredited manufacturer. Consider market volatility and long-term value when choosing precious metals to fund your IRA. When in doubt, consult a precious metals expert.
Keep Track of Your Investment
Once you finish setting up your gold IRA, monitor it regularly. There could always be changes in your investment, IRS regulations, or market conditions. For example, you may need to adjust as gold prices fluctuate or during economic uncertainty.
Pursue a Gold IRA With Oxford Gold Group
The answer to “How long is the process to set up a gold IRA?” differs for everyone. Regardless of your financial situation, Oxford Gold Group can guide you in investing your retirement funds in a precious metals IRA account. While the length of this process is uncertain, the sooner you begin, the sooner you can benefit from this financial decision.