Rollover
Definition
A rollover is the process of moving retirement funds from one account to another, such as from a 401(k) to a Gold IRA. A direct rollover transfers money between custodians without you touching the funds — this is the safest method. An indirect rollover sends the check to you, and you have 60 days to redeposit the money into the new account. If you miss the 60-day window, the IRS treats the amount as a taxable distribution and may apply a 10% early withdrawal penalty.
Why It Matters for Gold IRA Investors
Most people fund a Gold IRA through a rollover from an existing retirement account. Understanding the difference between direct and indirect rollovers helps you avoid unexpected taxes and penalties.