Answers To Commonly Asked Gold IRA Account Questions – Part Two
While many Americans are curious about gold investing, it is estimated that only a single digit percentage actually own gold. Of that small percentage, fewer yet own gold inside a gold IRA (Individual Retirement Account). Perhaps one reason for this is the fact that unless a gold company charges high premiums or service charges, opening a gold IRA account for a customer is a time consuming process involving no less than two other companies and produces very little profit or commission for the gold company. While a Senior Analyst at ITM Trading, I was asked several questions about opening a gold IRA for my clients, and here they are along with the answers.
Can I “Roll Over†Another IRA Or 401k Into A Gold IRA Account?
Yes. Quite often gold IRA investing is initiated by clients who are tired of paying the high maintenance costs associated with holding mutual funds inside of a 401k. You may need to check with your employer regarding the eligibility of your particular account, and it would also be wise to contact your tax adviser as well.
What Are The Costs Involved?
The costs involved in creating your gold IRA can vary, but here they are in order from greatest to least: 1- The cost of the gold itself. 2- The cost paid to the federally approved and insured vaulting company to create your vault account. There will be a small re-curring annual fee to hold your metals securely. 3- A possible fee to the banking company that creates the IRA account on your behalf. 4- ITM charges no fee or cost to initiate your account with the banking company. We do this as a service to those eligible to hold assets within a precious metals IRA. Depending on the types of coins and bars you choose to hold in your gold IRA account, the cost of acquiring the metals will be marked up a small percentage (2% to 3%) over our wholesale cost. This is the only part of the transaction where ITM Trading and your Account Representative will earn any money.
How Long Will It Take To Open My Gold IRA?
This can vary. If you are rolling over an IRA or 401k, then the company who is currently holding your funds will play a big part in how long your gold IRA account takes to fund. If you are opening a new gold IRA with your own personal funds the process will generally be quicker. The other variable will be how long the banking company takes to initiate your new account and set up the storage account with their approved vaulting company. Once your gold IRA account is set up and the vaulting is established funds are usually sent to ITM Trading quickly. Once we receive your funds from the IRA bank, we will contact you to “purchase†the coins and bars you want at that day’s prices. Your metals are then shipped directly to the vault to be held for you and your gold IRA account is then fulfilled. As you can see, the part that ITM Trading plays in the creation of your gold IRA is crucial, but limited. We do our best to move things forward as rapidly as possible, but there are many cogs in this machine. Generally, allow 1 to 2 months to set up your gold IRA.
Please contact us if you have any further questions about a gold IRA, we are here to be of service.