403b Rollover to IRA

You cannot work your whole life, so as employees, you have to set up a plan for your retirement. One way you can do this is to diversify your portfolio by doing a 403b rollover into a more flexible IRA to access alternative investments. Feel free to read the article to be more informed about this!

Top Gold IRA Companies of 2023 at a Glance

1. Augusta Precious Metals: Editor’s Choice - Best 403b to gold IRA rollover Company Overall (4.9/5)

2. Red Rock Secured: Runner - Best at Home Gold IRA (4.8/5)

3. Goldco: Great Buyback Program (4.6/5)

4. American Hartford Gold: Great Price (4.5/5)

5. Birch Gold Group: Great Staff Overall (4.2/5)

#1 Augusta Precious Metals: Editor’s Choice - Best 403b to Gold IRA Rollover Company Overall (4.9/5)

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This precious metals IRA company has been in the industry for over four decades and has an overall asset of about $34 billion. Our tests indicate that they are well-known for being transparent with their customers, whether about fees or financial advice.

They break down the fees you will incur when you set up your account in the initial consultation so you can prepare your funds should you choose to proceed with them. Moreover, our team discovered through using this product that there are precious metals professionals who can offer their expertise to their customers.

Their precious metals products (e.g., gold and silver bullions, coins, and buyback programs) are subjected to a price spread.

The starting investment requirement in Augusta Precious Metals is $50,000, the highest on this list. However, this makes up for their cost-effective pricing. They also have multiple accolades and customer testimonies, like an A+ rating from Better Business Bureau (BBB) and an AAA rating on BCA.

Pros

• Lifetime investment support

• A Harvard-trained economist leads precious metals professionals

• Cost-effective pricing of precious metals

• Strong focus on gold and silver precious metals investments

• Transparent fee structure

• Provides one-on-one web conferences with their clients to answer their queries.

Cons

• Lack of other precious metals options like palladium and platinum

• High cost of entry ($50,000)

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#2 Red Rock Secured: Runner - Best at Home Gold IRA (4.8/5)

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Red Rock Secured is a precious metals dealer helping customers set up a Gold IRA. The company has been recognized as a runner-up in the Best at Home Gold IRA category, with a rating of 4.8 out of 5.

In addition, Red Rock Secured provides a plethora of educational resources, such as informative articles, engaging videos, and interactive webinars. These resources offer valuable insights into the precious metals market, empowering customers with the knowledge to make informed investment decisions.

While there are several advantages to partnering with Red Rock Secured, one of its standout features is its buyback program, which offers customers the option to sell their precious metals back to the company at a fair market price. The company’s commitment to exceptional service has earned it high ratings on independent review sites like the Better Business Bureau and Trustpilot.

However, a few factors must be considered before investing with Red Rock Secured:

1. The company specializes in gold and silver, which may limit investment options for customers looking to diversify their portfolio with other precious metals.

2. The minimum investment required to set up a Gold IRA with Red Rock Secured is $10,000, which may only be affordable for some investors.

3. It’s worth noting that the company charges fees for its services, including storage and administration fees, which may impact investment returns.

Overall, Red Rock Secured is a reputable company offering various services and educational resources to help customers make informed investment decisions. However, potential customers should consider the company’s fees and minimum investment requirements before investing.

The business has gotten favorable feedback and has been named a runner-up in the Best at Home Gold IRA category. These are some advantages and disadvantages of Red Rock Secured:

Pros

• Experienced in the precious metals industry

• Excellent customer service

• No fees

• Provides educational resources to customers

• Offers a buyback program for precious metals

• High ratings from independent review sites

Cons

• A limited selection of precious metals (primarily deals in Gold and silver)

• Limited storage options

• Charges fees for its services, which may reduce investment returns.

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#3 Goldco: Great Buyback Program (4.6/5)

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Goldco or Goldco Precious Metals have a long asset and wealth protection history. When we tried this product, we saw how reputable they are in the industry. Their reputation is supported by how they assist their clients in rolling over their IRA account into gold and silver IRAs.

Goldco has a user-friendly UI where you can find forms to fill out to set up an account. The company would gladly provide you with assistance if you need it. After setting up the account, you will be provided with an account specialist who will transfer your funds into the new IRA.

We have found from using this product that the purchased precious metals are stored in an IRS-approved facility. Moreover, once the clients retire, they can receive their returns in physical gold, silver, or cash.

Pros

• Have a variety of precious metals designs (e.g., Royal Mint Gold Lunar Series, Gold Buffalo Coins, and Gold American Eagle Coins)

• Provide exemplary customer service.

• Have extensive investor educational resources that can be downloaded for free

• Low annual and management fee

Cons

• Limited platinum and palladium options

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#4 American Hartford Gold: Great Price (4.6/5)

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American Hartford Gold is well-known for its easy rollover process, which can be finished in three steps. They have experts who can assist new investors regarding their account set-up and purchase. Moreover, after trying out this product, we saw how their staff accommodates any concern or query.

They also have client education support to inform customers about what precious metals IRA is, how to roll over their accounts, and other information.

American Hartford Gold also has an excellent buyback program, as no liquidation fees are needed. Once you retire and want to sell your metals back to the company, you must contact them first. Our analysis of this product revealed that they have a 3-step liquidation process; all you have to do to start it is to call them.

Pros

• Great buyback program with no liquidation fees

• The company has a price match guarantee.

• They offer an option to deliver the physical precious metals to their client’s homes if they choose to have their returns that way.

• They have blogs about precious metals and market trends to inform their clients.

Cons

• Do not have an overseas shipping option

• Incomplete price listing of their online catalog

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#5 Birch Gold Group: Great Staff Overall (4.5/5)

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Birch Gold is one of the premier precious metals IRA company offering reputable services at a low investment price ($10,000). Their services are seen on the website, even their product prices. Although there may be some changes in the fees over the months, they update their customers before it happens.

The company also implements a flat rate structure for storage, shipping, and other transactions. We have found from using this product that this feature of the company is beneficial for bulk buyers as it maximizes their annual fees.

Birch Gold also has a solid team of financial advisors, commodity brokers, and wealth managers with a unified mission to offer you the best investment experience and diversify your portfolio.

Pros

• Relatively affordable cost of entry

• Transparent fee structure

• Has a team of experts to help the clients

• It has a strong focus on palladium and platinum

Cons

• The flat rate may not be as beneficial for infrequent buyers

• No overseas option for storage

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What Is a 403(b) Rollover?

A 403(b) rollover transfers your 403(b) retirement plan savings into another IRA. This plan is similar to 401(k) as both are employer-sponsored plans, so the transfer process may happen when you resign or retire.

You can roll your 403(b) funds into the following:

• Traditional IRA

• SEP IRA

• Roth IRA

• Simple IRA

• Pre-tax 403(b) plan

• Designated Roth account

• 457(b) plan

Our investigation demonstrated that you might have limited rollover options if your 403(b) plan was set up as a designated Roth account.

How Does a 403(b) Rollover Work?

Through our practical knowledge, we know you can roll over your 403(b) into another individual retirement account in two ways.

Direct transfer

For the direct transfer, you must first inform your custodian (usually tax exempt organizations) where to transfer your funds. After that, your custodian or administrator will transfer the money directly into another retirement account or a new IRA. You can also inquire if you can hold multiple retirement accounts.

Indirect transfer

For an indirect transfer, your money will be sent to you by your 403(b) plan administrator or custodian. Then, you will have 60 days to re-deposit your money into another or a new retirement account.

We determined through our tests that if you do not manage to redeposit within 60 days, you will incur tax penalties. Your withdrawn fund will be considered a taxable distribution, and you will have to pay income tax. If you are below retirement age, you may be subjected to early withdrawal penalty (10%).

What Should You Do to Roll Over Your 403(b)?

First, you must decide where you want your retirement savings. Then, you will choose between doing a direct or indirect rollover. As per our expertise, direct rollovers are safer as there is no risk of tax penalties.

After considering your options, you need to authorize your 403(b) plan administrator to roll over your funds into your chosen retirement account.

After authorization, you may have to fill in and sign a distribution request form. You may also be required to request a letter from your plan administrator or custodian at your current job that your funds will be deposited in an eligible IRA.

To kickstart this process, you may need to contact your employer’s HR department to lead you to your plan administrator, and then they will do the other work.

Rules for Rolling Over a 403(b)

Your options on where to roll over your savings depend on the type of 403(b) plan you have, which can be a Roth or traditional IRA. The difference between the two is that you’ll have to pay income taxes for the former, but the withdrawals are tax-deferred.

The latter is pre-tax dollars, and our research indicates that the money you contribute to your plan will be taxed once you withdraw upon retirement.

Plans You Can Choose to Roll Over Your 403(b)

There are multiple plans you can roll over your 403(b) into, but it differs and depends on whether you have a traditional or Roth 403(b) plan.

For traditional 403(b) plans, here are the plan types you can roll over your funds into:

• 403(b) (pre-tax, with a new employer)

• 457(b) plan (government retirement)

• Qualified plan (pre-tax)

• SEP IRA

• Simple IRA, after two years

• Traditional IRA

For Roth 403(b) plans, you can only roll over your retirement savings in the following retirement accounts:

• Designated Roth Account — 403(b) 401(k), or 457(b)

• Roth IRA

Will You Incur Penalties for Rolling Over Your 403(b) Into an IRA?

Our research indicates that you will only incur penalties if you opt for an indirect transfer and fail to make the rollover in 60 days.

In addition to the tax penalty, you will pay taxes, and 20% of your 403(b) plan savings will be withheld for federal income taxes.

You may also be charged for early withdrawal penalty if you are below retirement age and have yet to move your funds within 60 days.

However, based on our observations, the IRS may waive the deadline if the reasons for the delay are beyond your control.

What are the steps to rollover a 403(b) plan?

The process is easy and may be a form-filling task for you. Drawing from our experience, you must ensure that the plan you want to transfer into is compatible with your current one and allows rollovers.

Then, decide which plan you transfer to, whether it’s another IRA or a new employer’s plan. You can open a self-directed IRA to have more flexibility in your investment options.

Lastly, ask the administrator or custodian for the forms you must complete. Complete the required paperwork, which includes a distribution or rollover form and acceptance form from the new custodian or administrator.

403(b) Plan Rollover: Possible Benefits and Risks

After putting it to the test, there are multiple advantages to 403(b) plan rollovers. For one, you get more investment options than sticking with one 403(b) account. You may also save on investment fees and find it easier to manage your account.

As for the risks, the Employee Retirement Income Security Act (ERISA) will not protect your rollover funds. You will not have loan benefits and a higher age threshold (59.5) for withdrawal.

Alternatives for Rolling Over Your 403(b) Plan

In case rolling over a 403(b) plan is not for you, you can leave your 403(b) plan funds with your precious employer’s plan funds. However, this may make it hard to manage since you are no longer tied to that employer.

You can also transfer your funds to a new 403(b) account provided by your new employer or withdraw your account. Although, if you choose to withdraw, you may incur a 10% penalty.

Final Thoughts — 403b Rollover

Deciding on a 403(b) rollover or any transfer is always with risk. However, everything related to investment feels more manageable when you have a reputable company to back you up.

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Through our trial and error, we discovered that Augusta Precious Metals stand out from the other precious metals IRA companies for retirement planning because of their transparency with every process. This commitment eases our minds with our investments. With them, you will be assured that your investment is secure.