How to Convert Your Simple IRA to Physical Gold

Every Individual Retirement Account holder needs to be extremely careful with their account. This is so that they do not violate IRS rules which can trigger some penalties.

Withdrawing before a certain age is a perfect example as this can come with stiff penalties. So, the point here is to make informed decisions at all times.

Speaking of making informed decisions as an IRA account holder, there is an ideal way to get physical gold by converting your SIMPLE IRA plan. You should keep reading if you are interested in finding out the ideal way to avoid penalties and complications.


This simply means Savings Incentive Match Plan for Employees. It is a plan overseen by the IRS allowing employers as well as employees to benefit from the IRA system.

This kind is peculiar in a sense. This has to do with the fact that it fits the description of a plan better suited for employers who are not sponsoring a major plan in the meantime. This is usually for small employers.

There is even a clause stating the number of employees such employers should have at most. For more information about this plan, you can check here.

Some people misunderstand this kind of Individual Retirement account to mean an average IRA account. But this is a special kind directed towards certain groups of persons as you can see from the explanation above.

The Peculiarities of Getting Physical Gold with Your SIMPLE IRA

The system overseen by the IRS has grown over the years. This has seen a lot of new brokers come onto the scene. Well, you might have realized that many of these brokers allow their clients to invest in gold in one form or the other. Some of the gold investment forms possible with the help of these brokering service providers include

  • Mutual funds using gold as the underlying asset
  • ETFs (Exchange Traded Funds)
  • Gold mining stocks

Taking advantage of what this precious metal resource has to offer is possible with most of the brokering services. This is regardless of the kind that you run – Roth, SEP, traditional, or even SIMPLE IRA.

However, it is not that simple converting your SIMPLE or most IRA kinds to physical gold. But this is not impossible and this is why you should keep reading as we walk you through the process.

How to Convert SIMPLE IRA to Physical Gold

How to Convert SIMPLE IRA to Physical Gold

Converting to physical gold is not impossible as explained above. To this end, explained below are the processes involved:

Work with the Right Broker

Precious metal brokering service providers do not offer the same experience and even services. This is something that everyone hoping to convert their SIMPLE IRA savings to physical gold must understand in particular. This is so that they do not end up with the wrong company.

Speaking of the ideal brokering service provider, make sure that investment in other kinds of assets is possible with them. This is primarily how to know a good gold broker for this purpose.

Self-Directed Account

Identifying and working with the right broker is very crucial. The broker will help a lot in setting up the right plan for this purpose. This is because gold in this form cannot be held in just any kind of IRA. The ideal kind for this purpose is known as a Self-Directed IRA.

You should understand that this account (just as with many others) offers tax privileges. This is considering how tax does not apply at various points until the point of withdrawing your precious metal asset.

But you still have other financial responsibilities. The financial charges that come with storing your asset and the insurance cover is an example. The truth is that working with the right broker will lessen the burden. You also need to work with a custodian especially to purchase the precious metal asset.

Rollover or Transfer has to be Initiated

The newly set up self-directed IRA account has to be funded. This is not a daunting task thanks to the efforts of the IRS and technological advancement as well.

All that needs to be done is an exchange of details and some cross-checking. The old and new custodians also need to play their parts.

You should know that taxes do not apply when these assets are transferred. You may even decide to do more than just conversion to gold. Your existing 401(k) can be converted as well. However, a rollover is required for this to happen and this only happens 1 time in a year.

Choose a 3rd Party Storage Facility

The IRS highly regulates the activities of account holders and even service providers in the industry at large. As a result, this regulatory body sets rules that are to be adhered to.

One of these rules is why 3rd party storage facilities are needed by Gold IRA account holders. This is because self-storing the purchased precious metal asset is not allowed. Violation of this rule comes with heavy penalties and so you should play by the rules.

This is why you need to choose a good 3rd party storage facility for this purpose. Just make sure the facility is approved and ticks all the other boxes.

Buying Physical Gold

You will have to sign a document that will be passed across to the custodian by your precious metal company at this stage. Frankly, you need to work with the right dealer considering the crucial role they play in all these processes.

Wrap Up

We have discussed the basics involved in converting your SIMPLE IRA to physical gold. It is a possibility even though it involves all of these processes listed and explained here. You can visit for more information.

Identifying and working with the right precious metal dealer determines a lot when converting your SIMPLE IRA to physical gold to a large extent. This is why you should not take chances by choosing the right professional.

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