Direct Rollover
What is Direct Rollover?
A direct rollover transfers funds from one retirement account to another directly between custodians, without the funds passing through your hands. No federal withholding applies (unlike indirect rollovers), and no 60-day deadline starts. The check or wire is made payable to the new custodian "for the benefit of" you. Direct rollovers are reported on IRS Form 1099-R with a distribution code G.
Why does direct rollover matter for Gold IRA investors?
Direct rollover is the lower-risk path for moving funds into a Gold IRA. It avoids the 10% (IRA) or 20% (qualified plan) mandatory withholding that applies to indirect rollovers and eliminates the 60-day redeposit deadline. For most Gold IRA setups, requesting a direct rollover prevents the most common rollover mistakes.