401k To Gold IRA Rollover Guide

401k to Gold IRA Rollover Guide

What is a gold IRA rollover? It’s a question many investors ask, and that’s the topic for today. Everday we find article talking all about those thousands of IRA rollovers converted to gold bullion. It’s one of the more popular things that people thinking in the future are doing. If you have no idea how to convert 401k to gold, then you’re not alone. Don’t worry, you’ll learn all about that and more here today! Let’s get things started…

In 2023, most investors have considered rolling over some of their 401(k) into a gold IRA, which is a type of self-directed IRA. It’s allowed to hold precious metals like gold and silver and features many advantages. Before we get more into the gold IRA rollover process, it’s important to know what the best gold IRA companies are out there. Later, we’ll learn more about them.

The top gold IRA companies include:

Physical gold often performs well during periods of high inflation and economic uncertainty. Therefore, it could help investors add protection and diversification to their retirement savings. With a gold IRA, you can invest in gold bullion, which is something a traditional IRA doesn’t provide.

Free Silver

There are multiple reasons why people are turning to gold IRAs. As noted, a precious metals IRA allows you to hold physical precious metals in the form of coins or bullion (bars and rounds). Physical assets mean a diversified portfolio when you also have paper assets, including bonds and stocks.

The Bank of America reported in 2022 that a traditional portfolio of 60 percent stocks and 40 percent bonds showed the worst returns in more than 100 years. Therefore, diversification is crucial.

Likewise, precious metals are a solid hedge investment against deflation and inflation. Finally, IRA investors can enjoy substantial tax advantages, which will minimize their tax liability on their retirement account investments.

One easy way to start using a gold IRA is to roll over the funds from another type of retirement account, such as a TSP, 403b, or 401K. If you’re careful and follow the rules from the Internal Revenue Service (IRS), you can easily transfer money to a gold IRA with no tax penalties.

We’ll discuss all of this and more, so let’s get started!

What Is a Gold IRA?

Before investing in gold through an IRA, you need to know what it is. The term “gold IRA” is often referred to as any IRA that invests in physical precious metals. Therefore, it could be silver, palladium, platinum, or gold.

A self-directed gold IRA means that you’re the one in charge of choosing the investments for that account rather than using a mutual fund manager or ETF (exchange-traded funds). Overall, a self-directed IRA can be a traditional IRA or a Roth IRA, depending on whether you prefer pre-tax or after-tax contributions.

Self-directed IRAs give you more freedom of choice. You may invest in various financial assets beyond the usual products, such as mutual funds, bonds, and stocks. That is a huge advantage over 401K accounts, which generally provide limited options. For example, you may only have access to three or four mutual funds.

Overall, a self-directed IRA can invest in these assets:

  • Promissory notes
  • Raw land
  • Farm/ranch land
  • Joint ventures/business partnerships
  • Venture capital
  • Private equity investments
  • Real estate
  • Gold and other precious metals

Why Isn’t There a “Gold 401K”?

401Ks are employer-sponsored plans, and most of them deal with bigger and more traditional financial institutions to give them to employees.

Popular institutions like Charles Schwab, Fidelity, and Vanguard don’t deal with any alternative investments, such as Bitcoin, real estate, gold, and silver. They’re considered outside the financial system. In fact, these companies offer paper investments that they control in-house. Things like ETFs, mutual funds, stocks, and paper currency are what you’ll find there.

Another reason that most 401K accounts don’t offer gold investments is that the employers don’t want to deal with the headaches that come from giving every employee a self-directed retirement plan. They’d much rather deal with a traditional financial institution or bank that manages everything in-house so that employees can focus on their jobs.

However, you can find 401K plans that provide self-directed privileges. It’s wise to contact your employer to see if your 401(K) account will allow for physical precious metals investments.

What Are the Differences Between an IRA Transfer to Gold and a Rollover?

You hear many terms floating about when you try to convert a 401K to gold and silver, and it’s important to understand what they are.

IRA transfers and rollovers aren’t the same.

A rollover only works in some circumstances, such as:

  • There are multiple changes to the company’s pension plan.
  • You’ve resigned from a company that manages the finances.
  • Your employer’s retirement plan administrator changes (or the sponsoring corporation’s administrator changed.)

You have two types of rollovers: the indirect rollover and the direct rollover. A direct rollover happens when the assets get transferred from a 401K or another qualified retirement plan to a person’s IRA (individual retirement account). The purchase is delivered in that format, moving directly from the first source to the second. Overall, you can’t access the commodity until it’s been transferred.

The indirect rollover is often called a 60-day rollover technique. The investment gets transferred to your IRA 60 days or less after a withdrawal. Therefore, your investment might send checks periodically to your savings or checking accounts, and you can then sign that new check and transfer the funds to a new IRA operator.

– – – > Our Recommended Gold IRA Rollover Specialist is Goldco

However, a transfer happens when you tell the custodian to move assets from the current IRA to another IRA, often at another institution.

401K to Gold IRA Rollover Guide

Understanding 401K to gold IRA rollovers is the first step, but there are so many other things to consider. There are specific IRS rules in place, and you also have to choose a self-directed IRA custodian and a company offering gold IRAs.

Gold IRA Transfer Rules

The IRS has certain rules regarding precious metal IRAs, and they are:

  • You require a custodian trustee to manage your account. The gold IRA is self-directed, which means you make the decisions for buying and selling the precious metals investments. However, an IRS-approved custodian must execute them for you. The trustee generally handles the necessary reporting for your account, as well. Custodians can be trust companies, banks, and similar entities.
  • You have to keep the precious metals in an IRS-approved depository/storage facility. This means you can’t hold gold or silver in your home. Delaware Depository Service and Brinks are the most respected companies offering IRS-approved storage.

Meeting those two requirements is part of the initial setup process for your gold IRA. Some gold investment companies provide storage and custodian services for you. Everything is “in-house” as part of the services they offer.

However, your gold IRA company might require you to arrange for precious metals storage and custodial services yourself. It’s wise to pay attention to the custodian storage fees and other costs involved.

It’s often hard to understand the requirements of the 401K plan because of the many programs available. However, the IRS standardizes IRA restrictions, so the IRA at any financial institution must meet the same rules.

There are also IRS rules that focus on the distribution taxes. They’re often overlooked but are quite important. Overall, the IRS requires that 20 percent of the 401K distributions get withheld for federal taxes.

You don’t have to deduct tax from a payout, but it’s best to do so. Otherwise, you’re left with a large income tax penalty at the end of the year and could face fines and interest for underpayment.

The IRS also puts rules into place regarding the types of coins and bars you can have in the gold IRA account. Usually, they must be pure silver or gold.

A few other rules come into play, and they include:

  • There’s no maximum when rolling over funds from your 401(K).
  • Withdrawing money early (before you turn 59.5 years old) comes with a 10 percent penalty.
  • Additional contributions must follow the annual limits listed by the IRS ($6,500 per year or, if you’re 50+, $7,500 per year).

With so many complex 401K rollover rules to consider, it’s wise to choose a gold IRA company that can help you through it all. These gold IRA providers understand all the regulations and will ensure that you’re doing things correctly to avoid penalties and interest later.

Also Read:  Beginners guide to a gold IRA

Gold IRA Rollovers Guide 2023

It’s important to understand the process for setting up precious metal IRAs. Generally, it’s straightforward and simple, but you have to choose the right gold IRA company to help you. Gold IRAs are self-directed and special, so many institutions specialize in them.

Any gold IRA provider can set up your precious metals IRAs. However, beyond the initial setup of the account, most gold IRA companies offer widely differing levels of service. Consider these factors when selecting a gold IRA provider:

  • Fees
  • Shipping (Will the company charge you to ship the gold and silver coins/bars to the IRA storage facility? Do they charge to ship the precious metals to you whenever you withdraw? How much are these costs?)
  • Minimum initial investment needed
  • Customer support and service
  • Access to educational materials and information on the precious metals market

Step One – Create a Gold IRA Account

The first step to getting a gold IRA is to research the many precious metals companies out there and choose one. We’ll talk more about this later, comparing and reviewing the top choices.

You’ll also need to decide whether you want a Roth gold IRA or a traditional gold IRA.

Step Two – Initiate the 401K Rollover

Once you’ve created your precious metals IRA, you must contact the 401K plan administrator to transfer funds from the 401K to the new IRA. A direct rollover is easier because the trustee of the 401K sends money directly to the gold IRA custodian. Likewise, you’re less likely to incur a tax penalty this way.

You can transfer part or all of your 401K funds into the precious metals IRA. However, you’ll have to meet the minimum deposit requirements. Many investors talk to a financial advisor first, but the decision is yours alone to make.

It’s wise to commit roughly 10 percent of the total investment capital into precious metals like gold and silver. However, you could be more/less aggressive with those investments. Think about your needs now and what you might require in the future.

Step Three – Meet IRS Regulations for Custodian and Storage

You require a custodian to manage your precious metals IRA, though you make the decisions. Likewise, the physical gold and silver you choose must stay in a storage facility approved by the IRS.

Sometimes, companies will offer this service to you, so you don’t have to contact multiple brands to get the job done. However, it’s up to you to determine if they provide that option and if you want it.

Step Four – Invest

Once you’ve set up your account and have arranged for storage facilities and custodians, the money will roll over from the 401K. Now, you get to buy gold and silver, along with other precious metals. Choose to invest in coins and bars.

Gold bars/bullion range in size from 1/10 ounce up to many ounces. Likewise, gold/silver coins are minted in various sizes. However, one ounce is the most common.

The IRS rules require you to meet purity or fineness levels, which are:

  • Silver bullion and coins require a purity level of 99.9 percent.
  • Platinum, gold, and palladium coins and bars require a purity level of 99.5 percent.

However, the IRS does provide an exception to the rule for American Gold Eagle coins. They’re produced by the US Mint and have become popular with investors since they were introduced in 1986. These coins are 91.67 percent pure gold.

Numismatic coins (collectibles) are also popular investments, but they aren’t approved for precious metals IRAs because they rarely meet the purity requirements.

Step Five – Continue Investing

Once you’ve made your initial purchases of precious metals with the funds from the 401K, you can build your investments every year.

For 2023, the IRS is allowing annual contributions of up to $6,500 for traditional and Roth IRAs. Those 50 or older can add an additional $1,000 per year.

The amount you invest is determined by your overall financial situation and existing portfolio. When you want to make more precious metals purchases for the IRA, send a buy direction letter to the custodian, telling them what to buy, what price to consider, and where to go.

401(K) to Gold IRA Rollovers – FYI

We want to ensure you have all the information needed, so it’s best to focus on eligibility requirements now.

Many 401K accounts allow for IRA rollovers. However, this varies based on the plan, so you want to check with your administrator. Tell them what you wish to do, and they’ll determine if it’s possible and what procedures to follow.

If you’re 59.5 or at least 55 years old and not working for the employer offering the 401K plan, there will be no issues with transferring those funds to a gold IRA.

However, if you’re still working for that company and are 54 or younger, you might not be eligible to get an in-service withdrawal without dealing with a tax liability. In that case, you’ll have to wait until you leave the company or get older.

Even with 401K plans not allowing for transfers or withdrawals while still employed by the same company, you might be able to execute such a transfer. Many 401K plans feature a hardship withdrawal exception that can be used to disburse the funds to you, but your plan administrator must be willing to do that.

Why Convert Your 401K to Physical Gold?

There are so many reasons to convert a 401K to physical gold. These are the top three:

Diversification and Protection

Inflation is on the rise and has been for many years. Therefore, your money doesn’t go as far as it used to. For example, the price of food has risen, and so has the price you pay for a house. Gold can protect against that.

Diversification is also crucial. You can reduce your risk of loss by spreading investments out over different asset classes. Precious metals are a great choice when paired with traditional investments.

Loss of Trust for the US Dollar

Many investors don’t trust the US dollar anymore. They fear that it will collapse altogether, especially with the talk of digital currency. Therefore, precious metals can help you hedge against the risk of the US dollar because gold will always maintain its value. In fact, gold is likely to rise in value when the US dollar goes down.

Complete Loss of Confidence for the Financial System

You’ve likely heard about the global financial crisis in 2007 and 2008. It began with the subprime mortgage lending issue and expanded into a huge banking crisis when Lehman Brothers failed.

Likewise, people were terrified when they learned that the Silicon Valley Bank collapsed in March 2023. Countless people made bank runs to take their money out and caused the bank to go under. This is likely to continue happening as US citizens lose confidence in the financial system in place.

Paper Gold vs. a Physical Gold IRA Rollover – The Differences

It’s possible to invest in silver and gold coins, and there are many ways to do it, such as mining stocks, ETFs, mutual funds, and collectible coins. Owning physical gold through a gold IRA has specific benefits over paper assets, such as ETFs and gold stocks. They include:

  • Identity fraud and theft through online hackers are a growing threat to your financial security. Physical gold and other precious metal offer better protection because they can’t be stolen or hacked online.
  • It’s possible to hold gold anonymously. Most people worry about government power and intrusion, so this is a crucial benefit. Unfortunately, most governments can seize whatever money you have in your bank account. Cypress citizens learned that the hard way in 2013. The country was facing an economic crisis, and the central bank seized millions of citizens’ money overnight.
  • While you’re protected from government seizures, precious metals, such as silver coins and gold bullion, are protected better than cash from seizure by creditors. That alone will make precious metals appealing to most investors.
  • Investing in gold doesn’t carry a counterparty risk. Other investments are partially dependent on how a third party performs, such as the company’s board of directors. However, gold’s intrinsic value exists independently of other parties. Your investments aren’t at the mercy of a fund manager.

The precious metals held in a gold IRA provide substantial tax advantages. Contributions to your traditional IRA reduce taxable income for that year. Likewise, investing profits are always tax-deferred until you withdraw money. Roth IRAs have tax-free profits all the time. Additionally, you can buy or sell gold/silver within the gold IRA whenever you want without dealing with taxable capital gains.

Choose the Best Gold IRA Companies and Custodians to Manage Your Precious Metals IRA Rollover

Many gold IRA companies are out there, and they can help you invest in precious metals quickly. They guide you each step of the way and explain the procedures so that you understand the aspects. Likewise, they often provide custodian services and will ship your gold to the storage facilities.

Let’s take a look at the top choices:

Birch Gold Group

Birch Gold Group is a great gold IRA supplier because it offers tons of educational materials, and you can buy precious metals. Therefore, it’s ideal for first-time investors.

Overall, Birch Gold Group has been in business much longer than its competitors. The company was founded in 2003, and its main goal was to help others invest in precious metals IRAs.

Birch Gold

The company has preserved and improved its reputation for the last two decades. Likewise, Birch Gold Group has received excellent customer reviews from Trustpilot, Business Consumer Alliance, the BBB, and many others.

It’s generally best to use the suggested custodian for Birch Gold Group, which is Equity Trust. It tells you where to store the gold and offers three options to help you.

You’ll find various precious metals, such as Canadian Gold Maple Leafs, American Gold Eagle Bullion, and much more.


  • Fantastic reputation
  • Low minimum investment requirement
  • Instructional resources available for comprehension
  • Low base fees
  • Various coins and bars available
  • Charge structure and pricing transparency


  • Not open to international citizens
  • No option for live chat, so it’s hard to reach customer service
  • Can take 30 days or more to move a 401K to a gold IRA through Birch Gold Group
  • Inconvenience because of flat fees

Augusta Precious Metals

If you’re looking for gold IRA providers, Augusta Precious Metals could be the right choice. It’s been in business since 2012 and features transparent pricing, modest costs, and promises to prioritize things based on the client’s needs. Plus, it’s a family-run company and the best chance for finding a non-IRA investment or precious metals IRA.

Overall, Augusta Precious Metals has earned high rankings from reputable sources. For example, the BBB (Better Business Bureau) gives it an A+ rating, while the Business Consumer Alliance offers a AAA rating.

augusta precious metals

Since Augusta Precious Metals implements unique features, the company varies from other competitors. The firm gives a lifetime service guarantee and offers many educational resources.

Likewise, the IRA establishment processes are easy to follow. Plus, Augusta Precious Metals has a hotline to give you information on various gold assets. If that isn’t enough, the customer service is excellent, and the live chat option will answer all of your questions.


  • Relatively straightforward process for 401K rollovers
  • No complaints from customers
  • Great return policy
  • Clear pricing without hidden costs
  • Can choose gold or silver
  • Offers lifetime service and support
  • Insures all products


  • Must visit physical branches to get precious metals
  • Few options for palladium and platinum

American Hartford Gold

If you prefer to use a family-owned business, you’ll like American Hartford Gold. It’s dedicated to financial security and long-term stability for everyone. In fact, it’s a well-known organization and has ranked high among the top options for the last six years. Though it’s newer, it could still be the best gold IRA company because it’s focused on boosting its trust factor.

The company’s headquarters are found in Woodland Hills and Los Angeles, California. It has effectively delivered more than $500 million in precious metals, and it continues focusing on helping individuals safeguard and diversify their precious metal assets.

american hartford

In addition to offering 401K rollovers and precious metal IRAs, the company quickly ships the gold to you if that’s an option. Likewise, storage is included, and the brand uses the Delaware Depository Service. You won’t lose your physical precious metals or have them stolen, and it will handle all the necessary paperwork.

American Hartford Group has gained the trust of its customers by offering updated information on precious metals. Likewise, the customer support representatives are always available, so you can get answers to your questions quickly.

You should also check out the buy-back program here. If you get into a situation where you must sell gold to get cash, this is the best choice. The company will do that at current market prices, so you see less monetary risk.


  • Five-star ratings from the BBB and BCA
  • Buy-back program for a backup plan
  • Small initial deposit required
  • Free shipping with insurance coverage
  • Various products available


  • Expensive annual account fees and maintenance
  • No pricing information in the virtual catalog
  • Shipments only available to US citizens


Goldco is a well-known IRA company and is often ranked as part of the top 10 throughout the world. It established itself as the primary seller of silver and gold IRAs for over 16 years. Plus, the investments can finance your account, regardless of any tax benefits.

Overall, Goldco has a straightforward approach for establishing an old IRA, and you will work with knowledgeable and friendly customer care experts. You’ll fund the self-directed IRA once you sign a contract and finalize your purchase, and it does offer 401K rollovers. Plus, you can diversify your retirement account when you include precious metal assets.


The virtual platform on Goldco offers many company-related comments and reviews from real people. Most people turn to the Better Business Bureau, and they’re not disappointed when they see the A+ rating.

You’ll get your questions answered quickly with the customer support team. Plus, the online chat option is there 24/7 and will link you to industry specialists during normal business hours. Likewise, the website features many instructive videos and articles to help you make sound financial decisions.

Many people like that the Goldco website can be customized. Change the visual components and typefaces on the platform to make it your own and help you understand things more. This could be the best gold IRA company on the market for gold investing!


  • Clearly explained and reasonable pricing details
  • Offers decades of experience for success
  • No fees to activate account
  • Protection for accounts
  • Vast selection of goods (Palladium or platinum included)


  • Fewer resources available

A Word about Restrictions for Gold Bullion Bars and Coins

Gold CoinAll precious metals – palladium, platinum, silver, and gold – are eligible investments for a gold IRA. However, they must meet the purity requirements set out by the IRS. You can hold a mixture of precious metals in one account, as well.

Though it’s often called a gold IRA rollover, it’s a generic term that includes all precious metals. Therefore, a gold IRA might actually be a silver IRA if you’re only investing in silver coins.

Final Thoughts on a 401K to Gold IRA Rollover

Choosing a gold IRA rollover from a 401K could be a good idea for these reasons:

  • You’ve got multiple investment assets in a 401K or another retirement savings account, and the 401K is eligible for an IRA rollover. (Consider checking with the plan administrator for more assistance.)
  • You are dissatisfied with the limited investment options available in the 401K plan.
  • You want to diversify your overall investment portfolio or your retirement planning investments through precious metals like gold and silver.
  • You wish to secure investments that will hedge stock market risk and know that gold and silver, as well as other precious metals, have performed well historically during high-inflation periods.

A gold IRA rollover provides many tax advantages because it’s self-directed. Therefore, you have more flexibility and freedom in your investment choices. With the current uncertainty of the economy, a safe-haven investment in precious metals like gold and silver offers a unique opportunity to see larger returns on investment.

Likewise, gold and silver are less likely to get confiscated by the government, be seized by creditors, or leave you exposed to hackers and theft.

If you believe that precious metals IRAs are a good investment strategy for you, it’s wise to speak with a financial advisor about the many options. You should also research each gold IRA provider carefully.

FAQs about Your Gold IRA Rollover

Should I Roll Over My 401K to Gold IRA?

Do you prefer a retirement option that won’t mirror the volatility of the stock market or paper currency? Are you hoping to diversify your retirement savings? If you answered yes to those questions, a 401K to gold IRA rollover could be the best decision.

Gold IRA plans, and gold investments in general, are appealing because the price of gold often moves the opposite way of the stock market. If your securities investments perform poorly, gold investments are likely rising and vice versa.

Most investors use gold investments as a hedge against others. It’s uncommon for an investor to have a completely gold portfolio or only choose one asset class.

Gold sellers often market the gold backed IRA by contrasting them with risk and volatility within the stock market. Likewise, gold will usually always have some value. However, there are no risk-free investments out there. Gold prices are subjected to their own falls and rises. Investing in physical assets can present the possibility of theft, as well. However, your gold IRA custodian should insure against that.

Can I Convert My 401K to Gold?

Yes, you can convert your 401K to gold under the right circumstances. In most cases, you may only do this when you quit your job and want to shift all of your funds to another location.

Can I Roll My IRA into Gold?

Luckily, converting a 401k to gold is possible, and there are other precious metals IRAs available. However, it shouldn’t be used as a get-out-of-jail-for-free card. You’ll still have to pay taxes without more deductions.

To begin, you have to leave your current place of employment before moving the 401K to a self-directed IRA.

What Are the Pros and Cons of a Gold IRA?

As with all investments, gold IRAs have pros and cons. In some instances, it might not be the best way to own physical precious metals, but you can purchase and hold the metals using a tax-advantaged retirement account. Here are the benefits and drawbacks:


  • You can buy gold and silver bullion or other precious metals using a tax-advantaged retirement savings.
  • You’ll create an inflation hedge.
  • You have a more diversified portfolio than simply getting mutual funds, bonds, and stocks.
  • Capital gains get taxed as regular income and not at the collectibles rate of 28 percent.
  • Distributions are made in cash or physical metal.


  • There are storage fees involved with precious metals IRAs.
  • The metal must be purchased inside your IRA account. When setting up a new gold IRA account, you cannot put your already-owned metal into it.

Should I Cash out My 401K and Buy Gold?

In most cases, 401K plans don’t allow investors to choose the asset classes they are investing in. Therefore, they can’t directly invest in gold bullion. Likewise, most options don’t let individuals make direct investments into any precious metals. That means you can’t go out and buy gold coins or bullion to add to your retirement plan portfolio.

However, things aren’t completely out of your favor. If you want to put money into gold, you have options. One of them is to cash out the 401K and buy gold.

In most cases, you can do a direct rollover, but an indirect rollover might be the better solution, especially if you’re working with a gold IRA company.

How Do I Convert My IRA to Gold without Penalty?

Many people ask: How can I transfer my 401k to gold without penalty? The easiest and safest way to do that is to choose a direct rollover. The 401K trustee transfers money to your gold IRA custodian without having the money touch your hands at all.

Are Gold IRAs Worth It?

The only person who can answer that is you. However, most investors believe that gold IRAs are a great solution for these reasons:

  • Gold Maintains Value – Gold is a stable investment because it will maintain its value over time. Consumers believe gold is a valuable substance, and that hasn’t changed for many hundreds of years. Likewise, gold withstands time because it doesn’t corrode and keeps its beautiful color.
  • Hedge against Inflation – Inflation means that the value of the dollar goes down with time. The paper investments you hold must increase in value at a higher rate than inflation to stay profitable. However, gold hedges against that. Gold prices often fluctuate because of supply and demand, investor behaviors, and how much gold is in the bank reserves. Therefore, gold prices often increase when the dollar’s value goes down.
  • Deflation Protection – Gold protects against deflation, as well. When prices drop because of diminished demand, as they did in the Great Depression, people want to hoard cash safely. Gold is a stable place to hold your money and ride out deflation.
  • Great Diversification – Most investors know they shouldn’t keep everything in one place, and that greatly relates to the stock market. If you only invest in one thing, you’re vulnerable to risks that lead to the investment value dropping. Diversifying your portfolio helps manage the risk, reducing the volatility of the asset prices.

How Much Are Gold IRA Storage Fees?

The storage fee you pay can range in price significantly based on the gold IRA company you choose. Generally, they run about $150 to $200 annually, but there are also other charges to consider.

Gold IRA companies often charge a setup fee, maintenance, and more.

When determining how much it will cost to roll over your 401K to a gold IRA, it’s crucial to research the best gold IRA companies before deciding.

Is It Smart to Convert Money to Gold?

A financial advisor is likely to tell you that it’s best to avoid having many uncertain assets in an investment portfolio. If the bulk of your investments is cash-related, converting some of that to gold could be highly beneficial.

However, you may decide that converting your 401K to gold isn’t the right choice. Most gold IRA companies allow you to put your own money into a gold IRA account. Therefore, you can keep the 401K intact and still invest in gold coins without a gold IRA rollover.

How Much of My Retirement Should Be in Gold?

Usually, gold is seen as a worthwhile addition to diversifying your portfolio, but it’s not suitable for all types of investors. The rule of thumb here is to determine your overall account value and keep about 10 percent of precious metals within.

Should I Put My Retirement in Gold?

Most gold IRA investors believe that shifting a retirement account to gold is the best thing they could do (or the best thing they did). However, each investor is different, so it’s important to determine if a precious metals IRA will be worth it to you in the long run.

Your financial advisor can help you decide what’s right for you. In most cases, they will recommend putting some of that retirement into a precious metals IRA, with the rest continuing to stay in a Roth or traditional IRA.

Which Gold IRA Company Is the Best?

We talked about a few of the top gold IRA providers, such as Goldco, Augusta Precious Metals, American Hartford Gold, and Birch Gold Group. You should research them yourself to ensure that they meet all of your needs and offer the precious metals IRA services you require.

Does Fidelity Offer a Gold IRA?

Yes, Fidelity offers a gold IRA, but the only precious metals you can purchase through it are:

  • Bullion quality bars
  • Platinum American Eagles
  • Silver American Eagles
  • Gold American Buffalos
  • Gold American Eagles
  • Learn more about Fidelity Gold IRA.

Why Should You Get a Gold IRA?

There are many benefits of getting a precious metals IRA. These include:

  • Lower Fees – Rolling over your money into a precious metals IRA will cut down on the administrative and management expenses you pay. This eats away at the investment returns.
  • More Cash Incentives – Financial institutions want to do business with you and might offer money in exchange for bringing them your retirement savings. This can include free stock transactions if cash isn’t available.
  • Fewer Rules – 401K plans are often challenging because of all the requirements and rules for the programs. However, the IRS standardizes restrictions for gold IRAs, so all gold IRA companies are on the same page.
  • More Investment Options – 401K investment options are quite restricted. You can often choose mutual funds from one supplier. However, a gold IRA lets you invest in anything. Likewise, you have more things available to you, such as exchange-traded funds, bonds, and stocks.
  • Easier Estate Planning – Most 401K plans are paid out in a lump sum to the beneficiary, which doesn’t offer tax advantages. The rules vary depending on the plan, but many companies want to release the funds quickly to avoid holding an account for someone no longer at the firm. Though inheriting a gold IRA does come with tax penalties, they offer more distribution alternatives.

What Is the Downside of Buying Gold?

In most cases, the benefits of rolling over a 401K outweigh the drawbacks. However, there could be some downsides of getting a precious metals IRA, such as:

  • Value-added Funds – Alternative investments often include stable currency funds. They resemble money market funds but aren’t traded on the stock market. Usually, they come with higher interest rates.
  • Increased Account Application Fees – A traditional IRA provides a high-expense ratio of mutual funds and charges custodial fees. However, most providers also charge maintenance fees, which equal about 85 percent of the assets. Some gold IRA companies also charge monthly fees for maintaining the IRA.
  • Rules – There are tons of rules associated with a precious metals IRA, and it’s important to understand them fully. However, your gold IRA company should be able to help you here.
  • No Creditor Protection – 401K money is often protected from creditors under ERISA (Employment Retirement Income Security Act). However, that might not be available or considered with precious metal IRAs.
  • Fewer Loan Options – If you have a gold IRA, there are fewer loan options. You may be unable to borrow from your retirement savings and must follow the requirements and rules established by your plan.

What Is the Gold Rule 401K?

The golden rule 401K plan was specifically designed to alleviate many of the problems small business owners have. They offer affordable start-up costs and low record-keeping fees, which gives employees more options.

Likewise, a golden rule 401K offers higher contribution limits than a traditional or Roth IRA, and the owners can maximize their retirement savings. There are no mandatory contributions, either.

When Should I Roll Over My 401K?

There are certain times when you should roll over funds to a new 401K from an old one. These include:

  • Moving to a new job
  • Want to make it easier to manage your accounts
  • Are moving some money into a precious metals IRA

Can I Store My Gold IRA at Home?

No, you cannot store your gold IRA at home. You must use an IRS-approved depository. Sometimes, the gold IRA company you choose to handle the work will have one in-house or can help you choose a gold IRA custodian to protect your investment.

Do Millionaires Use 401(K)s?

Many millionaires do use 401Ks, but that number has plunged by about one-third. Fidelity Investments indicates that the number of 401Ks with $1 million or more fell nearly 32 percent in 2021.c

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