You may wonder if you may withdraw your gold IRA funds when the time comes. As with many other aspects of personal finance, “it depends” sums up the answer.
Remembering that a Gold IRA is a retirement account is the first step in understanding the restrictions and requirements of withdrawing money from your account. For instance, a 10% early withdrawal penalty applies if you cash out your Gold IRA before age 59 1/2. An early withdrawal fee of up to 10% of the amount taken out is possible.
There is no penalty for withdrawing funds from your Gold IRA once you reach the age of 59 and a half. However, like a traditional IRA, you will be responsible for paying withdrawal taxes.
Now that you’ve reached the age of 59 1/2 and are considering withdrawing money from your Gold IRA, what choices do you have?
Getting your money in one large chunk is one choice. This implies taking out the entire balance of your Gold IRA in one fell swoop. However, remember that you will be required to pay taxes on the whole amount withdrawn, so keep that in mind if you need a large sum of money for a specific expense.
Receiving your money over time is another choice. This involves taking a predetermined amount out of your Gold IRA periodically (monthly or annually). If you need a reliable source of income in retirement, this may be an intelligent choice, but remember that you will still owe taxes on the money you remove.
Last, you can roll over your Gold IRA into a Roth IRA. You can avoid future taxation on the growth of the money in your Roth IRA by paying the taxes now on your Gold IRA and then moving the money to a Roth IRA. This may be a good choice if your tax bracket will increase.is