What is an IRA?
The term IRA stands for an Individual Retirement Account which is a form of retirement plan that
provides tax advantages for retirement savings. There are several types of IRA’s.
- Traditional IRA – Allows individual investors to contribute pre-tax income towards investments that can grow tax-deferred. Annual contribution limit of $5,500 per year ($6,500 for ages 50+). Money is taxed upon withdrawal.
- ROTH IRA – Allows individual investors to contribute post-tax income toward investments that grow on a tax-deferred basis. Annual contribution limit of $5,500 per year ($6,500 for ages 50+). Money is tax free upon withdrawal after age 59 1/2.
- SEP IRA – A Simplified Employee Pension is a retirement plan for an employer or self-employed individual. Similar to traditional IRA and be a business owner. Limited annually to the smaller of $55,000 or 25% of compensation.
- Simple IRA – A Savings Incentive Match Plan for Employees that requires employer matching contributions to the plan whenever an employee makes a contribution.
- Self-Directed IRA – A retirement account that permits the account holder to make investments on behalf of the retirement plan.
What's different between IRA Transfers and 401(k) Rollovers?
A Rollover is done from an employer sponsored plan, or a non-like plan to an IRA. An example would be an employee sponsored 401k plan being rolled over into an IRA. All rollovers are tax-free.
A Transfer is done when the investment assets of an IRA are transferred to another IRA. All transfers are tax-free.
Why should I use a Self-Directed IRA?
Individuals wishing to transfer their current IRA or 401k investments into Gold must do so through a self-directed IRA account. RC Bullion walks each client through the hassle-free process of new account set up, transfer of assets and purchasing of gold for their new IRA account.
How long does it take to complete a Gold IRA transfer?
RC Bullion will begin your rollover process as soon as the “Account and Shipping Agreement” is signed. The process is completely hassle-free for you. Most rollovers are completed within 10 business days. The speed of the process will depend on your current IRA or 401k custodian and their process for releasing your funds.
What are some of the rules & limits for an IRA transfer?
- Rollovers generally need to be a like-to-like transition. For example, a traditional 401k will need to be rolled over into a traditional IRA.
- Each plan has its own specific rules set by the plan administrator. If needed, RC Bullion will set up a conference call with your plan administrator to determine any specific plan rules.
- You need at least one of the following to qualify for a rollover. First, you no longer work for the company that set up the plan. Second, if employed you need to be 59 1/2 to complete a rollover. Third, the plan has been discontinued by the employer
How does an IRA withdrawal work?
An IRA distribution is typically considered an “early” distribution if it is made before the owner of the IRA reaches the age of 59 1/2. Early withdrawals are subject to taxes, a 10% penalty and custodian fees. Any distribution made after age 59 1/2 is considered a “normal” distribution. In the year following the year the account owner turns 70 1/2 (and every year thereafter), the account owner must take a minimum distribution each year.
Do I withdraw physical metal or cash?
When you reach the minimum distribution age of 70 1/2, you have the ability to take your distribution in either precious metals or in cash. The decision usually depends on your financial needs and is 100% up to you. If you need money for your expenses, choosing to receive cash may be your best option. Your precious metals are sold and you will receive a check or a wire transfer with your funds. If you’re looking to continue holding your precious metals, the metals are shipped directly to you and you have the ability to do as you please.
