During my time as a Senior Analyst at ITM Trading, I helped some of my clients rollover their Traditional or Simple IRA’s (Individual Retirement Accounts) into what is known as a Self Directed IRA that can hold approved forms of gold bullion, in addition to other types of physical investments such as real estate or rental properties. These clients always had a myriad of questions to be answered.
The job of a Senior Analyst at ITM Trading encompasses many responsibilities, but perhaps the most important is the ability to listen to client, ask the right questions so you can get the whole picture of what the client needs and wants, and then research it’s research, research, research. You see, not everyone’s finances, goals, income, needs, and time frame are similar, or sometimes they are not even remotely similar. Therefore, finding the right financial strategy and the right financial tools to bring the strategy to fruition can be time consuming. Along the way I began hearing some of the same questions again and again from different clients, and below are some of the questions about Gold Backed IRA’s, also called Precious Metals IRA’s, along with the answers. Please read on.
How Do I Move An Existing IRA Into A Gold Backed IRA?
ITM Trading will make this process as simple as possible for you, and allow you to complete as much of the paperwork as possible. Or, if you don’t feel comfortable filling out financial forms by yourself, either your ITM Trading Representative or an ITM Trading Executive Assistant who is very familiar with this process will help answer your questions and complete and submit the correct forms on your behalf.
There are several ways this necessary information can be submitted to the Trust Company that will set up the Gold Backed IRA account on your behalf. For instance, we can mail the correct forms to you if you would like to fill them out on your own or with a financial professional that you trust, and then you can mail the forms to the Trust Company. ITM Trading can also fill out the forms for you while you are on the phone to answer questions and verify information, and then work to submit the forms on your behalf. The necessary forms are also available online, or we can email them to you. However you are most comfortable initiating this transfer, ITM Trading will strive to accommodate your needs and wishes. We are here to be of service.
What Will I Need In Order To Transfer My Current IRA into a Gold Backed IRA?
Only a few pieces of information are necessary to get the process started. You will need a recent statement from your current IRA account which will list your current IRA servicer, their contact information, and your IRA account number.
The Balance in this IRA must be a minimum of $5000.00 to effect this rollover.
You will also need your own personal information such as address, Social Security Number, and the Social Security Number of your spouse if they are to be included in the account. In addition, the forms will require the contact information and Social Security Number of the person you would like to name as your beneficiary, should you die before the account is fully liquidated. Unless there are unforeseen question or problems that arise, this should be all the information you require to get the process started.
Is A Gold Backed IRA Expensive To Set Up?
Not particularly, ITM Trading charges nothing for it’s services. ITM Trading will charge a small commission on the IRA Eligible Gold Coins and Gold Bars that are purchased with the funds transferred from your current IRA. This commission can vary depending on the precious metals product you choose to place in your new IRA account, and I will go into this very important point in greater detail shortly.
There may be a fee from the Trust Company that sets up the IRA account for you. This fee is rather negligible, and ITM Trading has selected the Trust Company we use exclusively because of their history of providing a high level of service while charging only very reasonable fees. In any event, the costs of servicing your new IRA should be very similar or less than the amount you are currently paying to service your paper asset backed IRA account. Just because you don’t have to send a check to your current IRA servicing company does not mean that they are not charging you and deducting their fees directly from your account.
If you are unsure about the current costs associated with maintaining your IRA, may I suggest that you carefully examine your statements. Sometimes the fees are not easy to recognize on your statement, especially when exorbitant fess are hidden in complicated Account Summaries, in which case a call to your current servicer may be in order.
Finally, there will be an annual fee from the Vaulting Company that will hold your gold on your behalf until you either liquidate the precious metals assets for cash, or choose to have the gold coins or gold bars sent directly to you as you become eligible for distributions, currently at age 59 years and 6 months. This fee will vary depending on the total amount of precious metals that you vault with them. Larger amounts cost more to vault, and smaller amounts cost less to vault. You will receive an annual bill for the vaulting services from the Federally Approved Vaulting Facility, not from ITM Trading.
Should I Purchase “Proof Gold Coins” For My Gold Backed IRA?
Proof gold coins are special gold coins that are struck to a higher quality, and they are much rarer than the common gold bullion coins and bars that usually are placed inside of a Precious Metals IRA. These coins also carry a substantially higher premium than regular gold coins and bullion, and therefore the commission on these coins is much higher.
Beware of any company that suggests or demands that you only place Proof Gold Coins in your new IRA. While it is possible that the Proof Gold Coins may appreciate and outperform regular gold bullion bars and coins over the long-term, this is speculative as the value of Proof Gold Coins is not necessarily consistent against the price of general gold products. Any Proof Gold Coins that you choose to place in your Precious Metals IRA should be seen as an aggressive, yet more risky investment. Therefore a representative that suggests funding your Gold Backed IRA solely with Proof Gold Coins should be considered suspect.
If you have more questions about opening a Gold Backed Precious Metals IRA, please call ITM Trading at 1.888.696.4653 or 1.888.OWN.GOLD.
We believe that everyone deserves a properly developed strategy for financial safety.
Chief Market Analyst, ITM Trading