Know About Gold IRA

If you've seen the television show, My Biggest Loser, then you're aware of what a rollover 401(k) into a gold IRA is all about. Now there are two things that you should understand before you even consider using one of these strategies for your retirement. It is very important that you understand this.

The first thing you need to understand is that a gold IRA is not a real IRA. As in, it is not something that you can open, contribute money into and then withdraw money from later. This would be taking advantage of what is called an unregistered or rollover IRA.

Real IRAs have rules and regulations in place that must be followed in order to make sure that you are not taking advantage of a loophole. This is important to know if you want to make sure that your hard earned money will be available to you at a later date. This is what a rollover 401(k) into a gold IRA is all about.

Many people assume that if they open a real IRA, they can also open a rollover IRA as well. In fact, they can't. You are supposed to be investing the money that you've saved into a real IRA and then move the money to a rollover IRA later on.

However, with the advent of more lax IRA guidelines, it is now possible for you to take money out of your retirement plan and deposit it into a taxable account. There is no difference between a rollover 401(k) into a gold IRA and a taxable account. It's just that they are supposed to be treated differently.

Why would you want to do this? Well, if you want to use an IRA to set up a Roth IRA, which allows you to make your contributions tax free, you can use a rollover 401(k) into a gold IRA. This way you can get a tax-free contribution to your Roth IRA and save yourself some taxes.

Not only is the IRA option a lot less expensive than a Roth IRA, but if you want to go full fledged there is no limit on how much you can contribute. In a Roth IRA, you cannot contribute more than you would in a traditional IRA. It is also tax free, so you don't have to worry about that either.

I don't think it's a good financial idea to be taking money out of your retirement account. The chances of it being taxed at all are low.