Not all IRA companies will provide the same level of customer service before and after you’ve made a purchase. It’s important to understand the role a company is playing in setting up your account, who your custodian is, and where your metals will be stored.
Roles and Responsibilities
Some people want an IRA company to provide lots of educational information and help them figure out what’s right for them. Other investors already know what they want to invest in and are looking for a company to help them administer their account.
Your IRA may involve more than one company. It’s important to know who your dealer, custodian, and depository are before opening an account:
- A custodian will perform services for your retirement account, such as recordkeeping and reporting.
- A dealer helps you buy and sell certain IRA-approved products.
- A depository is a facility that will securely store your precious metals according to the parameters of your account.
- An IRA company helps you open your account, explains your options, and can help guide you through the process.
Fees and Services
Among precious metals IRAs, not all IRA companies offer the same level of service. Some will help educate you about your options, while others want to simply take your money and point you to the lowest-cost dealer, custodian, and depository. Some IRA companies provide full service while others serve in more of a referral capacity.
It’s important to understand who you’re working with before transferring any retirement funds. Find out what services they provide, who will be performing certain services, and how involved they’ll be in your account down the road. If it ever comes time to sell, for example, you want to know exactly who you’ll be dealing with.
Written Costs
Before making a purchase or transferring any money, you should receive a comprehensive fee schedule in writing. If you’re comparing the best gold IRA companies, a written fee schedule lets you assess each provider on the same terms. Be sure to ask about initial setup costs, annual fees, storage costs, transaction fees, and selling fees.
Precious metals will typically cost more than the listed price on the market. This difference is called the spread, and it can vary depending on the product purchased. Your dealer should be able to educate you on their pricing structure.
Some companies advertise waived or free fees and services, but these offers often come with caveats and fine print. Free offers may only be available to customers who meet certain requirements such as opening an account with a certain dollar amount, purchasing certain products, or keeping the funds in their account for a certain amount of time. It’s important to get all fees in writing and understand what, if any, fees may go up after promotional pricing has ended.
Account Setup
Questions Before Opening
When shopping around for a gold IRA company, be sure to ask lots of questions. While the friendliness of their sales staff isn’t necessarily indicative of their level of customer service down the road, it can give you an idea of how knowledgeable they are and how forthcoming they are with information.
Some questions to ask include:
- What types of precious metals can I purchase in my retirement account?
- Do I have any options as far as depositories go?
- How and when will I receive my account statements and transaction confirmations?
- If I want to sell some of my metals down the road, how would that work?
- Will I have access to an account manager after my account is set up?
Be wary of any company that seems reluctant to provide you with information in writing or that pushes you to make a decision quickly. There’s no need to rush a financial decision like this, so take your time and do your research!
Rollover Process
There are a few different ways to fund your precious metals IRA. You can make a new contribution to the account, transfer assets from another IRA, or roll over assets from a previous employer’s retirement plan. Each of these processes can be a little different. A reputable precious metals company should be able to walk you through the process, including the difference between a rollover and a transfer.
With a rollover, the IRA assets are paid to you and then turned over to your new IRA. Rollovers are typically subject to a 60-day deadline, and missing this could have tax implications. For this reason, many investors opt for a direct transfer instead. With a direct transfer, the assets go directly from one retirement account to the other without being distributed to you along the way.
It’s also worth noting that some previous employer plans won’t allow you to make a transfer or rollover while you’re still employed there. You’ll want to check with your plan administrator to find out what, if any, limitations they have in place.
Metals and Collectibles
There are certain eligibility requirements that must be met before a coin, bar, or collectible can be considered for purchase in your retirement account. A reputable dealer should be able to tell you not only if an item is eligible for purchase in your retirement account but also why that product makes sense for your particular goals.
Keep in mind that rare coins and other highly marked-up collectibles may be more difficult to resell down the road and likely won’t get you as good of a price as more common coins and bars. If you’re looking to invest in precious metals for your retirement, rather than starting a collection, it’s important to ask questions about how easy the item will be to resell and how the buyback price is determined.
Be sure to receive all information regarding your purchase (type of product, amount, cost, depository, etc.) in writing before making your purchase.
Scam Protection
The best precious metals IRA company or salesperson isn’t necessarily the one with the flashiest ad or the best-sounding pitch. Rather, the best one is likely to be the company that clearly lays out all of the steps involved in opening an account, provides all cost information up front, doesn’t pressure you into a decision, and stands behind its customers even after the account has been funded.
Don’t be afraid to shop around and compare your options. And make sure to read all paperwork carefully, and retain copies of all account documents and transactions. Before rolling over your retirement assets, contact the receiving IRA company and ask exactly what paperwork they’ll need from you to open an account.
