Get To Know What A Gold IRA Rollover Is
When planning for retirement, its important to consider the purchasing power of the wealth in your portfolio. That’s why it is critical to have proper diversification. If your IRA is 100% dedicated to equities, then it is time to consider gold as a hedge against a possible stock market crash or economic collapse. What Allegiance Gold is known for is the ability to educate our clients and prospects about the true value of adding precious metals, like gold, to their portfolio. By adding gold to any financial portfolio, you are enabling yourself to preserve your wealth. Today, you can add gold to your individual retirement account (IRA) with a gold IRA rollover.
What Is A Gold IRA Rollover?
A gold IRA rollover is a process where you can transfer a percentage of your IRA account into IRA approved gold bullion. The process allows the gold bullion to have the same tax deferred benefits as equities in an IRA account.
Gold IRA Rollover Rules
It is important to know the gold IRA rollover rules before you commit to adding gold bullion to your IRA account. Here are the top five gold IRA rollover rules that you should know about:
1). 60 Day Transfer Rule
When funds are transferred into a gold IRA account, the account holder has 60 days to purchase gold bullion for the account.
2). 10% Distribution For Early Withdrawal
Much like an IRA account, there is a 10% distribution penalty if any gold is transferred out of the gold IRA account before the account holders retirement age of 59 ½.
3). Tax Event For 60-Day Rule Violation
If the 60-day transfer rule is violated, then the transferred funds are taxed as ordinary income.
4). One Rollover Per 365 Day Period
IRA holders are entitled to one rollover per 365 day period.
5). No tax withholding if rollover is from one IRA to another IRA
If the account holder transfers funds into the gold IRA from another IRA account, then there is no tax withholding.
Benefits of a Gold IRA Rollover
There are a number of reasons why someone should add gold bullion to their retirement accounts. Here’s a look at the top three benefits of diversifying into gold bullion:
1). Hedge Against Economic Uncertainty
On average, there is one stock market crash per decade. During these crash events, it is not uncommon to see the stock market fall as much as 50%. For an investor nearing retirement, this could be a terrifying event. Gold tends to perform well during times of economic uncertainty and can act as a safety net during economic or stock market crashes.
2). Uncorrelated With Stocks
Gold is historically uncorrelated with the stock market. That means that gold will tend to go up when the stock market goes down. If an investor is 100% in equities, then he will risk having to deal with heavy volatility when the stock market begins to go down. Having some investment into gold will help smooth out returns over a long term basis.
3). Provides a real store of wealth
For thousands of years, gold has proven to be a true story of wealth. That means that investors will be properly protected against inflation and will be able to protect their purchasing power for years and decades to come.
IRS approved gold that can go into an IRA
The IRS only approves certain gold bullion into IRA accounts. Here is a look at the IRA approved gold coins and bars that can be used in a gold IRA account.
- Gold American Eagle Coin
- Gold American Buffalo Coin
- Credit Suisse Gold Bars
- Valcambi Gold CombiBar
- Canadian Gold Maple Leaf Coin
How much of your portfolio should be in gold?
You may be wondering how much of your IRA should be dedicated to gold. Most investment experience recommend an allocation of between 5% to 10% in gold. Those who want to be more conservative with their portfolio may want to consider an allocation of up to 20%. At the very least, 5% of a portfolio allocation should be dedicated towards gold.
Getting started with a gold IRA rollover
To ensure that your IRA is protected against stock market crashes and economic uncertainty, gold is the smart choice to make. To get started with a gold IRA rollover, consult with your financial advisor. The quicker that you add gold to your IRA, the better your retirement will be protected from inflation and economic uncertainty. To get started call Allegiance Gold at 844-790-9191 and inquire about your FREE Gold IRA Guide that can provide some helpful insight on how to prepare when there is inflation and economic uncertainty looming. The executives at Allegiance Gold are here to help any questions you have, as well as, educate you on the importance of adding gold to your financial portfolio.