Two Types of Rollovers
Direct Rollover (Recommended)
Funds transfer directly from your old account to your new Gold IRA. You never touch the money.
- ✅ No taxes
- ✅ No penalties
- ✅ No 60-day deadline
- ✅ No withholding
Indirect Rollover (Risky)
You receive a check, then have 60 days to deposit into your new IRA.
- ⚠️ 20% mandatory withholding on 401(k) distributions
- ⚠️ Must deposit 100% within 60 days (including withheld amount)
- ⚠️ Miss deadline = taxes + 10% penalty
- ⚠️ Only one per 12-month period
Bottom line: Always do a direct rollover unless you have a specific reason not to.
Step-by-Step Rollover Process
- Step 1: Choose a Gold IRA Company
Select a reputable company (Augusta, Goldco, Birch Gold, etc.). They'll guide you through the rest. - Step 2: Open a Self-Directed IRA
Your Gold IRA company helps you open an account with a custodian (Equity Trust, STRATA, etc.). - Step 3: Initiate the Rollover
Your Gold IRA company and custodian handle paperwork to request funds from your old account. - Step 4: Funds Transfer
Money moves directly from old account to new custodian. Takes 1-3 weeks. - Step 5: Purchase Metals
Once funds arrive, work with your Gold IRA company to select and purchase precious metals. - Step 6: Depository Storage
Metals ship to an IRS-approved depository. You'll receive confirmation.
IRS Rules for Gold IRAs
Not all gold qualifies for an IRA. IRS requirements:
- Gold: 99.5% pure (0.995 fineness)
- Silver: 99.9% pure
- Platinum: 99.95% pure
- Palladium: 99.95% pure
Approved examples: American Eagles, Canadian Maple Leafs, Australian Kangaroos, PAMP Suisse bars
Not allowed: Collectible coins, jewelry, foreign coins below purity standards
Common Mistakes to Avoid
- Taking possession: IRA metals must stay at an approved depository. "Home storage IRAs" are a scam.
- Missing the 60-day window: With indirect rollovers, this triggers taxes and penalties.
- Buying non-approved metals: Collectible coins don't qualify.
- Working with shady companies: Always verify BBB ratings and regulatory history.