The three options
| Transfer | Direct rollover | Indirect rollover | |
|---|---|---|---|
| Moves from | An IRA | A 401(k), 403(b), TSP or similar plan | An IRA or plan |
| Money goes to | New custodian | New custodian | You, then you redeposit |
| Tax withheld | None | None | 20% from employer plans |
| Deadline | None | None | 60 days |
| How often | Unlimited | Unlimited | Once per 12 months, IRA to IRA |
| Our view | Use this | Use this | Avoid if you can |
Transfer: IRA to IRA
If your money is already in an IRA, a trustee-to-trustee transfer is the cleanest route. Your new gold IRA custodian requests the funds from the old one, and the money moves between them without ever touching your bank account. It isn't treated as a distribution, there's no tax, and there's no limit on how many you do.
Direct rollover: workplace plan to IRA
Money in a 401(k), 403(b), 457(b) or TSP moves by rollover. In a direct rollover, the plan pays the new custodian directly, often by a check made out to the custodian for your benefit. Nothing is withheld and there's no deadline. See our 401(k), 403(b) and TSP guides.
Indirect rollover: the risky one
Here the money is paid to you and you have 60 days to deposit it into the new IRA. Three things can go wrong:
- Withholding: employer plans withhold 20% for tax. To roll over the full amount, you must make up that 20% from your own savings and wait for a refund.
- The deadline: miss 60 days and the money is taxed as income, plus a 10% penalty if you're under 59½.
- The once-a-year limit: only one indirect IRA-to-IRA rollover is allowed in any 12-month period.
Our recommended provider's free kit explains its transfer and rollover process, which keeps the money custodian to custodian. Best fit if you have $50,000 or more to move.
Request the Free KitWhat to say to your current provider
Use the words "direct rollover" or "trustee-to-trustee transfer," and ask that the payment go to the new custodian, not to you. Your gold IRA company can usually supply the receiving custodian's details and a letter of acceptance.