Disclosure: Please note that some links on this website are affiliate links. We may receive a commission, at no extra cost to you, if you click through our links and make a purchase from one of our partners. This is not a financial advice article. Refer to a professional for financial advice. Please keep reading for more details on the 401k to gold IRA Rollover Guide.
- 1 How to Transfer a 401k to a Gold IRA
- 2 What is a Gold IRA: Things You Need to Know
- 3 Gold IRA account guidelines according to the IRS
- 4 Why You Should Invest in Gold
- 5 What Kind of Accounts are Eligible for a Rollover to a Gold IRA?
- 6 Rolling over your 401(k) to gold: Three Simple Steps
- 7 Transfers vs. Rollovers
- 8 Why you should switch to a Gold IRA
- 9 Fees associated with a gold IRA rollover
- 10 Best-Rated Gold IRA Companies
- 11 Conclusion on 401k to gold IRA Rollover Guide
How to Transfer a 401k to a Gold IRA
Thinking about transferring your 401k to a Gold IRA?
You’re not alone. A lot of people are making the switch because they realize how important it is to protect their retirement savings. A Gold IRA is a great way to do that – and it’s easier than you might think.
We want to help make the process as easy for you as possible, so we’ve put together this guide on how to transfer a 401k to a Gold IRA. It covers everything you need to know, from choosing a custodian to rolling over your funds. We hope you find it helpful!
Click here to download the 401k to gold IRA Rollover Guide which guides you through transferring your 401k to a Gold IRA!
What is a Gold IRA: Things You Need to Know
It is IRS approved gold that is held in an Individual Retirement Account (IRA). Your gold is then kept in an extremely safe insured depository so it remains safe. You may also choose to use other precious metals like silver, platinum or palladium in your precious metals IRA. We have found many companies that make setting up a precious metals IRA quite easy. Below we have vetted the best gold IRA companies and will make our recommendation on the one we believe is best for most individual investors.
Gold IRA account guidelines according to the IRS
You should learn more about the special considerations the IRS has for gold IRA accounts before completing a 401(k) to gold rollover.
You can get a free wealth protection kit from many different precious metals companies. There is usually great information contained in each guide. One we really like is from a company that specializes in 401k to gold IRA rollovers. You can click here to download it now.
A gold IRA account should only be opened through companies that are authorized to do so. Consider switching your 401(k) to a gold IRA with a companies that have great reviews, Better Business Bureau ratings and have been in business for a period of time.
Despite the fact that the assets you hold in a gold IRA will differ from those you hold in a standard 401(k), the rules of a gold IRA are similar to those of other IRAs. Contribution limits are set at $6000 for 20212. Your gold IRA account can be topped up by $1,000 every year if you’re at least 50 years old.
At age 59 1/2, you no longer have to worry about penalties for withdrawing money from your account. You will have to pay an additional 10% tax when you withdraw money before that age. When adding precious metals to your gold IRA, be sure that the physical metals are stored at an IRS approved facility.
Why You Should Invest in Gold
If you are thinking of investing in a gold IRA, there are many reasons you should think about doing so. The primary reason is the tax benefits that gold IRAs provide. It’s important to note that contributions you make to the account occur on a pre-tax basis, which means taxes aren’t deducted until withdrawals are made.
If you choose to roll over your 401(k) to gold, you can choose to invest in a range of different coins and bars, depending on the company. It is easier to buy low and sell high when you invest in a gold IRA. It is possible to sell gold bars and coins in the event that gold prices are expected to decline.
In addition, gold is a proven investment that helps you diversify your portfolio. Your retirement portfolio can benefit from gold investments by reducing the risk of market fluctuations caused by inflation or economic crises. The bottom line is this. Gold is may play an important part of a diversified investment portfolio. Gold has been around for thousands of years and has stood the test of time as a means for value and bartering for goods and services. In today’s troubling times, we think it is a good idea to have precious metals as part of a retirement strategy.
What Kind of Accounts are Eligible for a Rollover to a Gold IRA?
Many people ask what kinds of retirement funds am I able to transfer or rollover into a Precious Metals IRA? If you have funds in a Roth retirement account you can roll them into a Roth Precious Metals IRA, or convert your Roth when bringing it over from a 401(k) or something similar into a Roth Precious Metals IRA.
- 401 (k)
- TSP Accounts
Rolling over your 401(k) to gold: Three Simple Steps
Maybe you’ve just lost your job, or you’re changing employers. What do you do with your 401k?
One option is to roll it over into a gold IRA. There are many top gold IRA companies that will help you do that quickly and easily.
They’ll work with you every step of the way to make sure the transition is smooth and trouble-free.
A gold IRA is a great way to diversify your retirement portfolio. With stocks and bonds becoming more volatile, gold is a sound investment that will protect your savings against market fluctuations. And because it’s such a tangible asset, you can be sure its value will likely never go down to zero like some digital investments have done in recent years.
It is also possible to keep your 401(k) account after leaving your current employer. If you open another 401(k) account at your new job, you’ll be required to pay maintenance fees on two accounts. You might be able to merge your old 401(k) with the one you open with your new employer in some circumstances.
In a 401(k) to gold rollover, you can move all of the money in your 401(k) into an precious metals IRA account, which may be a great option for you, especially if you are worried about the inflation, wars and economic uncertainty.
Remember that you have two choices for rollovers, namely 401k direct rollovers, and indirect rollovers. With an indirect rollover, you’ll receive a check from your 401(k) provider, which you can deposit directly into your bank account. During this time frame, you will have 60 days to make your retirement funds available to a new IRA, which can be a gold IRA.
In the event that you miss the 60-day deadline, the rollover will be considered a withdrawal, which will result in you being taxed. Therefore, you should strongly consider using the direct rollover method. You can find assistance with this process from a gold IRA company like Goldco or Augusta Precious Metals.
Regardless of which company you work with, sending current 401(k) funds into a gold IRA requires funds to be transferred from your current 401k provider to your new precious metals IRA account. In most cases, 4precious metals companies that assist with a gold rollover can handle the process over the phone or online. In certain caes, there may be physical mailings that need to take place.
The rollover process usually takes a few weeks and is very simple to do.
Step 1-Open gold IRA account
Step 2-Fund your account by transfering money from your 401k, 403b, 457, Pension, etc.
Step 3-purchase the precious metal(s) you would like to hold in your account.
Transfers vs. Rollovers
Knowing the difference between a 401(k) transfer and a rollover is helpful when deciding to complete a 401(k) to gold rollover. There are some key differences between these terms, even though they are often used interchangeably.
A rollover involves moving funds from one type of account to another type of account. A transfer is used to move funds from a single type of account between two institutions.
Rollovers and transfers typically do not have any tax penalties associated with them.
Why you should switch to a Gold IRA
Choosing to move your 401(k) funds to a gold IRA comes with many tangible benefits. Some of these benefits are:
- Stability. Great investment in times of inflation and devaluation of the dollar. It gives you more control over your investments – As previously mentioned, a 401(k) account does not provide you with a variety of investment options. If you invest in an Gold IRA, your money can be invested in IRS approved precious metals, like gold, silver, platinum and/or palladium. You can have IRS approved coins, bullion and bars as part of your Gold IRA account.
- Performance-have you seen the stock market lately? Bear markets come and go. Often. Precious metals may outperform the S&P 500 and Dow Jones Industrial Averages.
- Fee control – Many people who consider a gold IRA fear that the fees will be high, but that’s not necessarily true. Your gold IRA account can be managed at a sensible rate and may just have a flat annual fee.
- You can access your funds when ready – Even though you shouldn’t withdraw your precious metals from your account until you’ve reached age 59 1/2, the fees associated with doing so are quite low with a gold IRA.
- You can choose which company best meets your needs for your gold IRA. You can make smart investment decisions with companies that offer great customer support, low fees, and robust investment tools.
- Potential safeguarding of your financial future. Gold has been around for centuries. It is highly unlikely the value will ever go to zero, like we have seen stocks and other investments do in the past.
Fees associated with a gold IRA rollover
Rollover fees are something each provider charges differently. Fees may include:
- A Gold IRA usually has a flat annual fee, unlike mutual funds which oftentimes have a percentage of assets maintenance fee.
- Mutual funds may charge significantly higher fees.
- Oftentimes companies have promotional deals going on that offset the annual fees, which can save you a bunch in annual fees.
Best-Rated Gold IRA Companies
Many companies are available to assist with the 401(k) rollover process to gold, but the following three are highly recommended:
Goldco is Out Best Choice for Your 401k to Gold Rollover
In the gold IRA industry, Goldco is considered a leader. This company has been managing precious metals IRAs for more than a decade, giving you confidence that your funds will be invested wisely. Among Goldco’s services, customers benefit from eBooks, videos, and gold price updates, as well as excellent customer service.
You will have low yearly fees when establishing a gold IRA account with Goldco, and they will provide you with a free gold IRA rollover kit. Goldco is rated A+ by the Better Business Bureau.
- A+ BBB Rated.
- Great buyback program guaranteeing the highest price.
- Invest in gold through a reputable company like Goldco.
- Experts from Goldco can provide expert advice and assistance.
- Don’t take calls on nights and weekend. However, you can fill out this form to download their free kit and they will call you back during business hours Monday-Friday.
Augusta Precious Metals
This company is outstanding, too. Joe Montana, legendary Hall-of-Fame Quarterback is their pitchman.
Augusta Precious Metals, a firm that has been honored multiple times for selling precious metals.
Gold IRAs at Augusta Precious Metals require a minimum investment of $50,000. Despite that, their annual fees are low and their customer service is readily available if you have any questions.
Augusta Precious Metals offers gold IRAs that are very easy to open.
If you partner with an investment company that offers a direct rollover, the 401(k) to gold rollover process is simple and straightforward. Investing in gold will allow you to continue building your retirement savings.
- Thousands of 5-star ratings. A+ Rating from the Better Business Bureau.
- Free 401k to Gold IRA Rollover Guide to learn more about Augusta Precious Metals Gold IRA offerings.
- They offer investments in gold, silver, platinum, and palladium.
- Additionally, if you own an IRA-approved coin, you can also invest in precious metals for your personal portfolio.
- They don’t think precious metals are for everyone and will help you decide if it is right for you, or not. We like this a lot.
- We really can’t find any. I guess if you aren’t a 49ers fan, you may not like Joe endorsing the company. Ha. Frankly, who doesn’t love Joe Montana?
Birch Gold Group
Birch Gold Group specializes in precious metals and provides premium gold IRA accounts. Over the last 20 years, they have built up a highly satisfied customer base. The company has served more than 10,000 customers over the years.
They will help you decide which bars and coins to invest in when you complete the rollover process. For those who want to improve their investment knowledge, they provide extensive educational materials. An annual kit is available for free.
- A+ Rating Better Business Bureau.
- Dedicated in-house IRA department for the convenience of their clients.
- Insurance may be included with every order.
- Several locations nationwide offer storage.
- Birch Gold is endorsed by Ron Paul.
- Free Information Kit.
- Not a large presence on social media.
Conclusion on 401k to gold IRA Rollover Guide
You’ve worked hard for your 401k, but now you’re worried about the future. The stock market is unpredictable and there’s talk of a recession on the hor
It’s no secret that the stock market is a risky investment. With all of the volatility in the markets lately, it’s no wonder people are looking for safe havens to put their money.
A gold IRA rollover may be the answer for you. When you roll over your 401k to gold, you’re investing in a physical asset that has been shown to hold its value during times of economic uncertainty.