What is an IRA?
Allows individual investors to contribute pre-tax income towards investments that can grow tax-deferred. There is an annual contribution limit of $5,500 – $6,500 per year depending on age. Money is taxed upon withdrawal.
A Savings Incentive Match Plan for Employees (SIMPLE) requires employer-matching contributions to the plan whenever an employee makes a contribution.
A form of IRA that permits the account holder to make investments on behalf of the retirement plan.
Allows individual investors to contribute post-tax income toward investments that grow on a tax-deferred basis. Annual contribution limit of $5,500 – $6,500 per year depending on age. Money is tax-free upon withdrawal after age 59 ½.
A Simplified Employee Pension (SEP) is a retirement plan for an employer or self-employed individual. Similar to a Traditional IRA but for self-employed individuals.
Have more questions about IRAs? Call us today at 1-800-326-9598 to speak with a member of our IRA Processing Department.
Common IRA Questions
A rollover is carried out from an employer-sponsored plan, or a non-like plan, to an IRA. An example would be an employer-sponsored 401(k) plan being rolled over to an IRA. All rollovers are tax-free. A transfer is done when the investment assets of an IRA are transferred to another IRA. All transfers are also tax-free.
If you wish to convert your retirement assets into gold or other precious metals, the most common way of doing so is by transferring or rolling over your current retirement plan to a Self-Directed IRA capable of holding physical precious metal coins and bars. American Bullion walks each client through the hassle-free process of setting up the new account, moving funds, and purchasing bullion for their new Gold IRA. For more information on Self-Directed IRAs, see our Self-Directed IRA Infographic.
Most rollovers are completed within 10-15 business days. The process is dependent on your current IRA or 401(k) custodian and their procedures for releasing your funds.
There are no fees for the rollover itself. However, there are often closeout fees from previous custodians, minimal account setup fees, and maintenance fees for new Self-Directed IRAs.
- Individuals can only do one rollover per plan, per year. Transfers are unlimited. Rollovers generally need to be a like-to-like transition. For example, a pre-tax 401(k) will need to be rolled over to a pre-tax (Traditional) IRA, and a post-tax 401(k) will need to be rolled over to a post-tax (Roth) IRA.
- While investors can begin a self-directed IRA with as little as $200, American Bullion recommends a minimum rollover amount of $10,000 to account for any fees associated with the process.
- Each plan has its own specific rules set by the plan administrator. If needed, American Bullion will set up a conference call with your plan administrator to determine any specific plan rules.
- To qualify for a rollover, you must meet one of the following requirements: 1) you no longer work for the company that set up the plan, or 2) if currently employed by the company issuing the plan, you are of age 59 ½ or older.
An IRA distribution is typically considered an “early” distribution if it is made before the owner of the IRA reaches the age of 59 ½. Early withdrawals prior to age 59 ½ are subject to taxes and a 10% penalty. Any distribution made after age 59 ½ is considered a “normal” distribution. Once the account owner turns 70 ½, he or she must take the RMD (Required Minimum Distribution) each year thereafter. For any more tax-related questions you have concerning your IRA, we recommend seeking advice from a tax professional.