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    Inherited IRA and converting to Gold - Anyone done this?

    Key Takeaways
    • So my aunt passed away late last year, and I've just about finished getting everything sorted out for the inherited IRA she left me.
    • It's a pretty substantial chunk of change, just shy of $300k.
    • I'm a construction guy here in Chicago – been running my own company for the last decade – and I'm a big believer in tangible assets.
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    So my aunt passed away late last year, and I've just about finished getting everything sorted out for the inherited IRA she left me. It's a pretty substantial chunk of change, just shy of $300k. I'm a construction guy here in Chicago – been running my own company for the last decade – and I'm a big believer in tangible assets. Always have been. Stocks feel… ethereal, you know?

    My existing IRA is already something like 20% in physical gold and silver, not paper. I just like the security of knowing it’s there, something real. So naturally, my first thought with this inherited IRA is to convert a good portion of it into a Gold IRA. I’ve been reading up on the rules for inherited IRAs, and it seems like there are some specific ins and outs to navigate, especially if you’re not a spouse.

    Has anyone here gone through the process of converting an inherited IRA into a Gold IRA? Or even just rolled an inherited IRA into a self-directed one and then bought physical metals? What a pain the inheritance part was, so now I'm trying to make the conversion part less of a headache.

    I’m looking for practical advice, potential pitfalls, or even recommendations for custodians who are good with this specific scenario. My current custodian is fine, but I'm open to shopping around if someone else specializes in this. Any war stories or success stories would be greatly appreciated. Just trying to make sure I’m not missing anything obvious before I pull the trigger.

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    5 comments

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    Best Answer▲ 6 upvotes
    D
    donna_rogers🏆Advanced (250-500k)

    Hey, first off, sorry to hear about your aunt. Dealing with that amidst financial decisions is tough.

    Regarding converting that inherited IRA to gold, one thing to definitely look into is the "in-service distribution" rule if you're still working. Some plans allow you to move funds from your current 401k (if it's tied to this inherited IRA in any way, or if you're just looking at your overall retirement strategy) into a Gold IRA without penalty, even before retirement age. Not directly about the inherited IRA, but could be a useful strategy for other retirement funds you might have and want to diversify into precious metals. Good luck with everything!

    Comments (5)

    1
    betty_king📊Growing (50-100k)about 2 months ago

    Hey, I actually just went through something pretty similar, though on a much smaller scale. Inherited an old 401k from my grandpa. Always been a bit wary of the stock market roller coaster, so I looked into converting a portion of it to a gold IRA. The process was surprisingly straightforward once I found a good custodian. Definitely worth exploring if you're looking for that stability, especially with a sum like that.

    1
    sharon_evans💰Established (100-250k)Real Investorabout 2 months ago

    Hey, first off, congrats on getting all that sorted. Dealing with inherited accounts can be a beast.

    You mentioned you're a "construction guy" in Chicago – that's interesting. I'm curious, has your background in the industry influenced your interest in gold, perhaps seeing hard assets as more tangible or reliable?

    1
    joseph_harris📊Growing (50-100k)about 2 months ago

    Hey, first off, sorry for your loss. It's great you're thinking strategically about this inherited IRA. While gold can definitely be a good diversifier, have you considered that an inherited IRA has specific RMD rules? You generally can't just leave it there to grow indefinitely like a traditional IRA. The distributions are usually taxable at your ordinary income rate, and if you convert to physical gold within that IRA, you're still stuck with those RMDs down the line, potentially having to sell some gold to cover them. Just something to keep in mind when weighing your options!

    6
    donna_rogers🏆Advanced (250-500k)Real Investorabout 2 months ago

    Hey, first off, sorry to hear about your aunt. Dealing with that amidst financial decisions is tough.

    Regarding converting that inherited IRA to gold, one thing to definitely look into is the "in-service distribution" rule if you're still working. Some plans allow you to move funds from your current 401k (if it's tied to this inherited IRA in any way, or if you're just looking at your overall retirement strategy) into a Gold IRA without penalty, even before retirement age. Not directly about the inherited IRA, but could be a useful strategy for other retirement funds you might have and want to diversify into precious metals. Good luck with everything!

    3
    richard_garcia👑Elite (1m-5m)Real Investorabout 2 months ago

    Yeah, I'm with you on this one! I inherited an IRA a few years back, not quite as much as your aunt left you, but still a decent amount. I ended up rolling about half of it into a Gold IRA.

    My thinking was similar – just wanted some stability and a hedge against inflation. So far, so good. No regrets whatsoever.

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