Traditional, SEP or Existing IRA to Gold IRA Transfer

If you already have an IRA, you do not need to cash it out to own gold or silver in a retirement account. The usual route is to open a self-directed IRA with a custodian that allows eligible precious metals, then ask your current custodian to move the money over. This page explains how that works for traditional and SEP IRAs, what to ask both custodians, and where the traps are. For the full process, see the Gold IRA Transfer guide. For a side-by-side of the methods, see Gold IRA Rollover vs Transfer.

Can you move an existing IRA into a Gold IRA?

Generally, yes. A Gold IRA is a self-directed IRA. That means the custodian lets you hold investments beyond the usual funds and stocks, including certain precious metals. A custodian (also called a trustee) is the bank or IRS-approved company that holds the account.

The IRS says: "If you're getting a distribution from an IRA, you can ask the financial institution holding your IRA to make the payment directly from your IRA to another IRA or to a retirement plan" (IRS rollovers page). This is a trustee-to-trustee transfer. The money goes from one custodian to the other, not to you.

Whether your particular move is accepted depends on both custodians. The new custodian must be willing to open the account and accept the money. The old one must have a process for sending it out. Confirm both before you start.

Which accounts does this page cover?

Can a SEP IRA be transferred to a Gold IRA?

A SEP IRA is an IRA set up under a Simplified Employee Pension plan, which lets an employer contribute to employees' IRAs. The IRS FAQs say: "Many of the rules for traditional IRAs also apply to your account in a: SEP, SIMPLE IRA plan, or SARSEP" (IRS IRA FAQs).

Note the words "many of the rules." We did not find a statement on the IRS pages we reviewed that settles every question about moving a SEP IRA. So treat it as likely, not certain. Ask the new custodian whether it accepts SEP IRA money into a traditional Gold IRA, and ask the SEP custodian whether it needs a different form.

One more point: if your employer is still contributing to the SEP IRA, ask whether moving the account affects how those contributions are received. Your employer or a tax professional can answer that.

How does an IRA-to-Gold-IRA transfer work?

Each custodian has its own forms. The usual steps are:

1. Open the new self-directed IRA. Choose a custodian that holds precious metals. Keep the type the same: a traditional IRA moves to a traditional Gold IRA. See how to open a Gold IRA and Gold IRA custodians.
2. Complete the transfer request. It asks for your old account number, the old custodian's details and how much to move.
3. Check that the form says the money goes to the new custodian. If it makes a check payable to you, it is not a transfer.
4. Wait for the old custodian to release the money. It may sell investments first.
5. Confirm the amount that arrived. Compare it to the old statement.
6. Decide what to buy, if anything. The money can sit as cash in the new IRA while you compare options.

What is the difference between a full and a partial transfer?

• Full transfer. The whole balance moves and the old account is usually closed.
• Partial transfer. Only part moves. The old account stays open with the rest.

Whether your old custodian sets a minimum amount, charges a fee, or needs a different form for a partial move is a question for that custodian.

A partial transfer can make sense to people who want to keep part of their savings in familiar investments. Whether that fits your situation is a question for a financial professional. We do not recommend a split.

Why is a transfer usually used instead of a rollover?

When money is paid to you, the move becomes a 60-day rollover. The IRS says you have "60 days from the date you receive an IRA or retirement plan distribution to roll it over to another plan or IRA." It also says an IRA distribution paid to you "is subject to 10% withholding unless you elect out of withholding or choose to have a different amount withheld" (IRS rollovers page).

There is also a once-a-year limit. The IRS says individuals can make "only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own." The IRS adds that the limit applies by "aggregating all of an individual's IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA." But "trustee-to-trustee transfers between IRAs are not limited" (IRS one-rollover rule).

Sources: IRS rollovers page; IRS one-rollover rule.

So if you have a traditional IRA and a SEP IRA, a 60-day rollover from either one counts against the same one-per-year limit. A transfer does not.

What should you ask both custodians?

Ask in writing where you can.

The old custodian:

• Will the account be sold to cash, and when?
• Are there fees to sell, close or transfer out?
• Do any holdings have surrender charges or maturity dates, such as CDs or annuities?
• Is there a minimum for a partial transfer?
• How long does a transfer usually take?

The new custodian:

• Do you accept money from this type of IRA, including a SEP IRA?
• What are the account fees, and what will I pay before I buy any metal? See Gold IRA fees.
• Can the money wait as cash?
• Which depository will hold the metal, and what does storage cost?

What happens to the investments in the old IRA?

The new custodian must receive the money in a form it accepts. Often that means the old holdings are sold and cash is sent. Some may move in kind if the new custodian accepts them. Your investments may be out of the market while the transfer is pending. A financial professional can help you weigh that.

Example: moving part of a traditional IRA

This example is made up to show the steps. It is not a suggestion for any amount.

A person has $80,000 in a traditional IRA at a brokerage. They open a traditional Gold IRA and sign a transfer request for $30,000. The brokerage sells enough holdings to raise $30,000 and sends it to the new custodian. Nothing is paid to the person. $50,000 stays at the brokerage. The $30,000 arrives as cash. The person can then compare quotes and fees before deciding what, if anything, to buy.

If the same person had asked for a check instead, the $30,000 would have been paid to them. The 60-day clock, possible 10% withholding and the once-a-year limit would all come into play.

What mistakes should you avoid?

• Asking for a check to speed things up. It turns the transfer into a 60-day rollover.
• Switching account types by accident. The IRS FAQs describe moving traditional IRA money to a Roth IRA as a conversion, a different transaction with different tax treatment (IRS IRA FAQs). See Gold IRA taxes.
• Assuming a SIMPLE IRA works the same way. It has its own timing rules.
• Taking the metal home. The IRS says the exception for certain highly refined bullion applies if it is "in the physical possession of a bank or an IRS-approved nonbank trustee" (IRS IRA FAQs). See the IRA collectibles rule.
• Feeling rushed to buy. The money can wait as cash. See warning signs of a Gold IRA scam.

Related questions

Does a transfer count as a new contribution?

A transfer moves money already in an IRA. We did not review a source that addresses this directly, so see Gold IRA contribution limits and ask a tax professional how your move should be treated.

Can I move my IRA more than once a year?

By trustee-to-trustee transfer, the IRS says transfers between IRAs are not limited (IRS).

Do I need a professional?

Many transfers are routine, but yours may not be. A CPA, enrolled agent or financial professional can confirm the type of move that fits your accounts, especially with a SEP IRA that still receives employer contributions.