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Simplifying A Gold IRA, a Gold 401K and a Roll Over.

A Gold or Precious Metals IRA

An IRA is a (Individual Retirement Account). This is a tax free account in which an individual saves or invests for his or her retirement. At 59 1/2 years of age the individual can access this account. If the individual decides to draw or access this account before the age of 59 1/2 he or she must pay a fee to the United States Government for drawing early. At 59 1/2 the individual can access/withdraw from this without select penalties by the United States Government. This means an individual does not have to pay taxes on the funds he puts into his IRA each year. A IRA is a “personal” account that is set-up, maintained and held by a custodian ( not the individual) such as a banking institution or metals firm.

If the individual passes away or becomes disabled they then are are allowed to draw from their IRA without penalty. In the event the individual passes away their next akin or person they left their assets to becomes the owner in which they can withdraw some or all of it without penalty.

IRAs do not permit withdrawing or penalty-free distributions before age 59 1/2. However account holders are permitted to use up to $10,000 without penalty to purchase their first home.

When rolling over, which means moving assets from one type of investment account to an IRA there is no limit to the amount of transfer. We discuss the roll-over process more further into this article. The maximum allowable start of an IRA per year is $6500 for individuals over 50. $5500 for those below the age of 50.

A Gold IRA is simply implementing gold instead of paper currency or any other asset. There are some unique advantages to investing in gold and select precious metals versus stocks, bonds and other investments. We explain some of those advantages here: Precious Metal Investment Advantages

A 401K and a Precious Metals 401K

A 401 K is an account set up by the employer for an individual. It is taken out of the employee’s pay before taxes and is not taxed. It is placed in a special account in which employers sometimes add their own contributions along with an employees.  An individual who owns a company or is self employed may also set up a 401K.

An employee may be permitted to take loans or hardship withdrawals from a 401(k). Loan repayments are generally taken from the employee’s paycheck.  In the even the individual passes away their next akin or person they left their assets to becomes the owner in which they can withdraw some or all of it without penalty. 

What is a Roll-Over?

A roll-over is simply when you already have an existing account and you choose to actually transfer those funds to another retirement account in which now you will begin paying into the new account for your retirement. Although roll-overs are to be reported when filing your tax return they are not taxable.

Who sets up, maintains, or rolls over these accounts?

Plan Administrators (account executives and/or financial planners)  from licensed institutions set-up IRA’s. Your employer will set up your 401K unless you are self employed in which you will use a plan administrator.