For so long, we’ve all known how precious metals can be. Some people invest in high-end jewelry in hopes of being able to liquidate them in particular circumstances. On the other hand, some people put all of their savings in one retirement account, such as 403(b). With the increasing concern and interest in retirement investments, we cannot exclude the value of Gold, Silver, and other precious metals.
According to Forbes, people should invest at least 10% of their retirement accounts in precious metals due to their stability. They are an excellent way to preserve wealth, especially in an economy without certainties.
This article will review some of the best companies where you can get a 403(b) to Gold IRA rollover for a more secure future.
Top Gold IRA Rollover Companies
Finding a gold company that you can trust is hard, but you wouldn’t have that problem with Goldco. You might have previously heard of them, as their brand ambassadors are Chuck Norris and Sean Hannity. This might not be an official stamp of approval that proves Goldco to be a good company, but it does say a lot about its services.
If there’s one thing Goldco knows that is most important to people, it is stability. This is the main feature of their business model. In these changing times, one of the most secured investments you can cling to is the Gold and Silver IRA. These precious metals retain their value over time and would not be affected even if the dollar’s value decreases.
Goldco only offers Gold and Silver because they are the most stable precious metals. They come in various weights and are IRA-authorized. All of their bars are .9999 fine, ensuring its stability in the economy.
They accept a minimum investment of $50,000 for their precious metals IRA. For their non-IRA transactions, the minimum purchase falls at $3,500.
All bars and coins are certified
Provides up-to-date articles and news to keep you informed
Received A+ ratings from Better Business Bureau
Consumers Affairs Accredited
It may take days for the information kit to arrive
Augusta Precious Metals is a trusted company for investments. They started in 2012, and they were able to receive excellent reviews across different platforms like Facebook, TrustLink, Google Reviews, and Consumer Affairs.
Among many Gold IRA companies, Augusta stands out due to their features that investors will surely benefit from. One of their most excellent features is the education they provide for their customers. Indeed, many questions arise when money is in the talk, and they can help you understand further how much investing in precious metals can safeguard your money.
Not all retirement plans look the same, and Augusta knows that. Everyone has different concerns, savings, and lifetime goals. That is why they put getting to know you their priority upon reaching out to them. They want to understand your needs to assist you with the most suitable plan.
Even if you are a beginner in the precious metals market, you will not feel alienated from Augusta. They can teach you about each corner of the industry and what you should be looking for if you invest.
Augusta Precious Metals accepts a minimum order of $50,000 for non-IRA purchases and $50,000 for IRA purchases. You can meet their minimum purchase by getting any combination of the items you want.
One of the most typical issues people find in Gold and Silver IRA is their steep minimum order price. Some companies offer purchases with lower minimums and include palladium and platinum metals.
Simple Rollover Process for 403b to gold (precious metals) ira
Zero Complaints on BBB and other trusted review sources
Free education regarding Gold IRA
High spread percentage on Premium Purchases
Difficult to find pricing information.
American Hartford Gold is a family-owned gold IRA business that operates in Los Angeles, California. They help their clients expand their investment portfolios and add precious metals to the list. You can also receive silver and premium gold at competitive rates with a lifetime warranty.
The prestigious Inc. 5000 2021 List of America’s fastest-growing private companies named American Hartford Gold the #1 gold company in the United States. This is exceptionally impressive, and you can ensure that it is a good company.
The good thing about American Hartford is that you can easily open an account within minutes. You can even work with a representative to simplify the process. Their golds are kept safe in depositories across the United States, so that’s one less of your worries.
Other than Gold, American Hartford can also help you purchase other precious metals like silver and platinum. They also offer to deliver the purchased metals directly to your home. Talk about convenience!
Unlike other gold companies, American Hartford Gold offers a buyback plan. This commitment allows you to liquidate your precious metal assets without being required to pay additional fees.
They also strive to provide transparency to their clients as they educate them about the precious metal investment industry. The company is good at communicating with its customers, making them reliable and trustworthy partners in IRS.
Excellent ratings from customers
Offers special deals
In-house precious metal specialists at your disposal
Complete cost disclosure
The website doesn’t include a price list
Shipments are not available outside the US
For people who want wealth security and diversification, Birch Gold is the one to go to. Their real-time market performance is prominent for their IRS-approved precious metals. They have developed strategies for investment in Gold, Silver, Platinum, and Palladium. They have been in the industry for almost 20 years, so it is safe to say that they already know the ins and outs of the business.
If you sign up with Birch Gold, you can take advantage of the excellent analysis. You will be given a clear view of what having a Gold IRA can do for your future. They also offer flexibility in choosing which precious metals to invest in.
After setting up your account with Birch Gold, you will be prompted to decide on your storage options and custodians. Their most popular options if the Brinks and Delaware Depository.
Free shipping on all purchases
Excellent buyback program
Top rated firm
The website can be confusing
Quite difficult to contact
Can I Use My 403(b) to Invest in Gold?
Technically, you cannot invest physical Gold through your 403(b) plan, including bars, coins, and other collectibles. You can only do so by opening a Gold IRA account or doing a Gold IRA rollover. In doing that, you will be allowed to deposit gold bullion into your retirement plan, ensuring stability in your wealth’s value.
If you don’t want to do a Gold IRA rollover, what you can do instead is purchase mutual funds that include stocks from mining companies. People usually refer to this as “paper gold.”
You can also add gold exchange-traded funds (ETF) to your account. You don’t necessarily need to purchase Gold, but an EFT holds it. There are two types of Gold ETFs. One of them is backed by physical Gold, and the other is backed by the future contracts of Gold. However, most investors choose the one backed with physical Gold due to the fear of possibly facing problems with gold futures ETFs in the market.
Benefits of Rolling Over Your 403(b) Plan to A Gold IRA
Rolling over your 403(b) accounts into a Gold IRA provides many benefits, especially for retirement. There are many available IRA options that you can incorporate into your retirement plan, and Gold IRA is among the most popular.
You can move your money tax-free to Gold IRA from 403(b) without paying tax penalties if you choose to roll over. It also becomes much easier to release your capital during certain situations in your life without being required to pay the 10% tax penalty levied by the IRS.
These are the benefits of rolling over your 403(b) accounts to a Gold IRA:
Rolling over into a Gold IRA is much more tax-efficient than choosing to cash in your 403(b) plan. In given circumstances, you may even be allowed to access your money without paying IRS taxes.
Investing in Gold has always been a good option. Such physical assets are not usually subjected to an economic crisis, unlike others like shares, bonds, and stocks. If the world happens to experience a sudden jolt in the economy, many people find silver, palladium, platinum, and Gold to be a haven.
One of the most common things you will hear in the investment industry is that you shouldn’t invest all your resources in one option. Even if it is a less risky plan like the 403(b), it is always better to have a backup. We often recommend finding other accounts where you can invest around 30% of your retirement savings, like in bonds, stocks, properties, and more.
By having different types of assets in multiple IRA accounts, you can diversify the risk of your money. If an economic crisis hits one asset, you still have additional assets. In this way, the damage would not affect the total amount of your savings.
What is A 403(b) Plan?
403(b) is a retirement account for people working in certain 501(c)(3) tax-exempt organizations, public education, and ministers can apply. This is similar to the retirement account plan available for employees working in the private sector, the 401(k) account.
The people who often use the 403(b) plan are medical professionals, self-employed ministers, government employees, librarians, and public-school teachers and administrators. This is due to the limited eligibility criteria for organizations imposed by the Internal Revenue Service (IRS). The only eligible employers that may sponsor 403(b) plans for their employees are the following:
Public education organizations
On the other hand, these are eligible employees to participate in a 403(b) account:
Employees of cooperative hospital service organizations
Employees of tax-exempt 501(c)(3) organizations
Civilian staff and faculty of the Uniformed Services University of the Health Sciences
Public school employees
Ministers and chaplains employed by non-501(c)(3) organizations
Ministers employed by 501(c)(3) organizations
With a 403(b) account, your money can grow free of capital gain taxes. The yearly contribution limit for 2022 is $20,500, but employees aged 50 and older can contribute an additional $6,500. Moreover, those in the same organization for 15 years can add an extra $3,000 contribution per year at any age.
403(b) accounts can allow you to delay a portion of your paychecks for your retirement. Your employer can also match some of the contributions if they choose to do it. This account can be tax-deferred, which may reduce your taxable income this year due to your contributions. You can also pay your taxes on distributions in your retirement or this year to allow your money to grow tax-free.
Additionally, you can personally choose how you want to invest your money in your 403(b) account. There are two investment products for 403(b) accounts: annuities and mutual funds.
An annuity is a contract between the employee and the insurance company that guides your account. They are responsible for requiring the insurer, usually your employer, to make a payment to you in the future or this year. There are basic types of annuities that you should know—fixed, variable, and indexed. This is based on the growth potential of the investment.
In this type of annuity, insurance companies provide you with a minimum interest rate and a fixed amount that you should pay periodically. It is monitored by state insurance commissions and offers the least risks and unpredictability.
Unlike other investments that may dive or soar depending on many factors, a fixed annuity is steady. The set interest rate will never go beyond what is stated in the contract.
A variable annuity provides periodic payments that depend on the performance of the subaccounts funding the annuity’s growth. Your insurance company can enable you to direct your annuity payments to several investment options available for your account, like mutual funds. Remember that your payout will vary based on how much you put in it, your expenses, and the rate of return of your existing investments.
Unlike fixed annuities, the Security and Exchange Commission (SEC) regulates variable annuities.
This type of annuity combines the features of insurance products and securities. The insurance company will credit you with a return based on the current stock market index. Know that this is regulated by state insurance commissions and has a medium-level risk that won’t sink below the level set according to the contract terms.
On the other hand, mutual funds refer to an open-end investment company. Investors pool their money and invest it in different securities such as bonds, stocks, and short-term debts. The combination of the holdings of the mutual funds is what you can refer to as its portfolio. Investors may buy shares through a broker or directly from the fund. Each share represents an investor’s part ownership in the fund and its generated income.
403(b) Plan vs. Other Retirement Accounts
Here’s a table to fully illustrate a comparison between a 403(b) plan to other retirement vehicles:
*Each plan may have different gold investment options that are in discretion, hence the “possibly” answers.
Maximum 403(b) Contribution
The maximum contribution for 403(b) accounts in 2022 is $20,500. This is significantly higher than 2021′s $19,500 limit. However, there are existing eligibility criteria that will allow you to contribute more than the year’s limit.
If you are 50 or older, you are eligible for an additional contribution of $6,500. This also applies when you are an employee for 15 years in the same organization, which grants you an extra $3,000 limit per year—up to $15,000 in a lifetime total. Still, this is optional. You are not required to meet this limit if you cannot. You can also set your savings rate and adjust it based on your capacity.
You can control the percentage of your paychecks going towards your retirement plan. If your company matches your contributions, they will base the contribution percentage on your annual income.
A 403(b) account is an excellent retirement savings vehicle for eligible employees. However, you must keep track of all the fees and rules that will ultimately help you grow your savings and avoid penalties in the future.
The name of the 403(b) plan comes from Section 403(b) of the Internal revenue Code, where the tax breaks that they offer and restrictions of the plan are set forth. This account will also permit your employers to supplement your contributions as their employees with their additions. Matching contributions or discretionary from your employers are allowed for a maximum of $58,000 in employee and employer contributions for workers under 50 years old in 2021. For those 50 years old and above, it can even reach $64,500.
For 2022, it will increase to a limit of $61,000 and $67,5000 for employees 50 years and older. However, you should know that employer contributions do not always happen or not as generous as you may think in the 401(k) realm. The non-profit nature of such businesses does not give them enough freedom to offer these kinds of benefit packages to their employees.
In this case, you have to be aware of what options for investments you have in your 403(b) plan. Some employers use annuity products from insurance companies so they can get the tax benefits of the 403(b)s. such restrictions were demolished to permit traditional mutual funds and other investment options. However, some still have higher-cost annuities that may not always be suitable for the needs of a certain investor.
You should also learn the difference between the Roth 403(b) from a standard 403(b). Roth contributions are considered after-tax, where you will pay the taxes of your contributions now, so all your qualified withdrawals and earnings will be tax-free. On the other hand, the standard 403(b) contributions are on a before-tax basis.
Standard 403(b) allows your pre-tax money to grow tax-deferred in your account. For example, if you contribute $5,000 to your 403(b) account from an income of $50,000, your gross income can make that $5,000 into $45,000. You will not be demanded to pay income tax from your 403(b) generated investment income unless you withdraw that money in retirement.
A Roth 403(b) plan involves initially saving your after-tax money and letting it grow in your account tax-free. You must meet a requirement, and doing so will allow you to withdraw your money even after retirement without having to pay income tax.
Final Thoughts - 403b to Gold IRA Rollover
Investing in precious metals, especially Gold, can be an excellent step in securing wealth in retirement. With the right company, you can learn more about the benefits it can give to your savings and how it may impact your family’s life.
Among the companies mentioned above, Goldco exceptionally stands out. Their standing in the industry shows how trustworthy and reliable they are in terms of precious metals investments. When it comes to your money, you don’t just want to put it somewhere risky. With Goldco, you can rest assured that your investment is well-handled and protected from any economic crisis.
If you are unsure about Goldco, you can always check out the other companies listed. All of them have reputable standing in the industry. Reach out to them to start your journey in precious metals investment today.