Moving a 401k to

Gold IRA Rollover

Moving a 401k to Gold IRA Rollover

Disclaimer: All or some companies listed may provide us with compensation. That is how we provide our customers with our great free services. Compensation coupled with extensive in-depth research, determines how and where companies below appear.

What can you do with your 401K after leaving an employer or accumulating a considerable amount of capital while continuing your employment? The subject of moving an employer’s retirement plan account to an IRA is complex regarding taxes, rollovers, and transfers. Therefore, we will have a thorough discussion about IRAs and how to move 401Ks to Gold IRAs. This information is beneficial to reducing tax liabilities, preserving your assets, and making strategic investment decisions.

Gold IRAs are becoming more appealing to investors and future retirees in recent years. They help to diversify retirement or investment portfolios and reduce tax liabilities. The money deducted from your paychecks and placed in your 401K were nontaxable, which ultimately reduced your taxes. IRA accounts are protected against taxation until you withdraw and use your funds.

A gold individual retirement account allows you to own physical gold instead of cash, stock, and bond assets. Since Congress passed the Tax Relief Act, investors and employees are seeking refuge to protect their assets and reduce risks. One thing to remember about gold IRAs is applicable fees and storage costs. You will need a custodian and trustee with depository support before purchasing physical gold.

Today, employees with 401Ks have the option to own physical gold in an IRA. A gold IRA has the benefits of owning precious metals and building a diverse retirement portfolio. The funds in your employer’s retirement plan will continue to receive protection under the Tax Relief Act when rolling over to IRAs.

Why Invest in Gold IRAs

Gold has had a place in the world for its value for thousands of years. Its cultural history is rich in processes for the development of coins, jewelry, and artifacts in pure gold. Precious metals continue to be coveted commodities in society and global economies.

Investors hold gold for a variety of reasons, mainly to preserve and protect their wealth. They use it to hedge an increase in inflation and a decrease in the US currency. When investors lose the value of their invested capital, they will shift investment positions to include precious metals, especially gold.

Throughout history, investors used gold as a safe haven to hedge their investments. Uncertainty in global and national economies and politics are obvious reasons investors choose precious metal IRAs. A gold individual retirement account removes your money from declining stocks perhaps included in your 401K. It safeguards your retirement and investment portfolio.


Contrast Between Gold Certificates and Physical Gold

A gold certificate represents an ownership claim of a specified quantity of gold, usually in ounces. Banks and registered companies in the US issue gold certificates to prove a holder is an owner. The dollar value of gold certificates fluctuates based on the market conditions, making them precious metal investments. A currency investment has a higher risk compared to gold investment.

We want you to be aware of the risks involved in gold certificates. If the seller of the certificate files for bankruptcy, for example, he or she will lose money. When the company selling the certificates goes under financially, their certificates are worthless in value. For years, fraud has been an issue that causes investors to be cautious in selecting a gold investment.

If investors decide to invest in gold certificates, they hold other options besides shares in gold ETFs or certificates. Holders of physical gold experience fewer risks and are not subject to fraudulent transactions and activities. This gold investment option allows you to store your own gold in your home or in a safe deposit box at a bank. Theft is the only risk factor to consider when buying and storing gold.

How to Rollover Your 401K to an IRA

IRAs have their benefits for employees and semi-retired individuals. If you are working for an employer with a 401K or want to roll over part or all of your money, here are your options:

  • Gold IRA
  • Traditional IRA
  • Roth IRA

Your 401K plan administrator can help you with rolling your money into a traditional IRA. You must complete forms to move the cash electronically or a check. The transfer or rollover to IRAs is not taxable if you deposit your funds 60 days prior to receiving the cash.

Former and existing employees can roll over 401Ks to a Roth, Traditional, and/or Gold IRA. The rollover process is the same as the 401K rollover to a traditional IRA. If you are at least 59.5 years of age, there are no taxes on your fund withdrawals. IRAs must be open at least five years to receive this tax benefit.

Rolling over your 401K into a gold IRA or a self-directed investment retirement account helps protect your entire assets. It should not be a problem for your 401K plan administrator to rollover your account into a gold IRA. Self-directed IRAs are tax-free accounts as well. Investors can hold precious metals and collectibles in their retirement accounts.

Check with your former employer or the 401K administrator to learn the rules and guidelines about rolling over, transferring, or withdrawing funds. Each employer’s retirement plan may differ in restrictions and eligibility requirements.


Direct Rollover or Indirect Rollover

You must set up a gold IRA before you can begin a 401K rollover, directly or indirectly. A direct rollover transfers your 401K automatically to a self-directed IRA. The process relieves you of the duty of handling the money and penalties.

An indirect rollover pulls your money from the 401K and deposits it in the gold IRA. When your 401K account is officially closed, the plan administrator sends the trustee or custodian a check on your behalf. The trustee or custodian stores your purchased metals in a depository for safekeeping and administration. Both rollovers, direct and indirect are safe ways to move funds from a 401K or other qualified retirement accounts.

Benefits of Rolling Over a 401K to a Gold IRA


A gold IRA offers you four benefits when rolling over your 401K into gold.

  1.  Adds More Portfolio Diversity - An old saying from investors about investment portfolios is “Avoid putting all your eggs in one basket!” To protect their investments, diversification is significant to preserving and safeguarding overall assets. It is a strategy used by accredited investors that works when there is a mixture of options, such as IRAs, stocks, bonds, mutual funds, and other securities.
  2.  Removes Your Funds from Declining Stocks - If you built up wealth in your employer’s retirement fund, you should know the securities included in the 401K plan. If there are stocks and the market is declining, it may be the right time to move your money. When the economy is in turmoil, many investors turn to gold. A gold IRA helps create balance and stabilizes an investment portfolio.
  3.  Increases Income and Growth - Some gold investment options comprise dividends that pay investors quarterly income. You can increase the growth of your portfolio if you reinvest your dividend payments. For investors needing additional income, a dividend precious metal is beneficial.                                                    Historically to date, gold continues to exhibit powerful performance in paying dividends. Stocks that pay dividends show higher gains when the market is stable and ascending.
  4.  Eligibility for IRS Tax Credit - The IRS relieves taxpayers of paying taxes on the money they contributed to an IRA, traditional, Roth, or gold. Taxation kicks in when you withdraw funds and don’t reinvest within a specific time frame. Suppose you withdrew $10,000 from your 401K to pay down on a home, IRS will double tax. You may have to pay your federal income tax and an additional 10 percent taxation for early withdrawal.                         Gold IRAs have their advantages and are alternatives to 401Ks and other risky investment options. Those benefits provide you a hedge against negative economic conditions including inflation, a great depression, and market crashes.

Different Ways to Own and Possess Gold

Your options for owning gold include:

  • Coins
  • Futures
  • Company Stocks
  • ETFs
  • Mutual Funds
  • Bullion
  • Jewelry

You have other options if you don’t want to purchase shares of stock in a mining company to have ownership of physical gold. Futures are a bet if you want to use leverage to profit from the rising prices of gold. As with most investment options, holdings in gold futures are risky.

For any asset you invest in, the best time is when it is inexpensive and the price is low. Gold increases in value when the economy is in a crisis. It is a stable asset because its supply is in constant demand.

Gold is useful in maintaining price sustainability because of its in-disposable feature. In the economy, it is an essential asset in manufacturing, electronics, creating jewelry, high-technology devices, and investments.

Factors to Consider Before Investing in Precious Metals

Liquidity is a major concern when purchasing precious metals, stocks, and bonds. You want your dealer registered and to have a broker’s license. In the US, companies and brokers must meet regulated standards to offer advice on investments and trades. It is best to work with financial professionals with an ethical responsibility to you.

Avoid unregistered dealers and sales personnel for these reasons:

  • Outrageous, expensive monthly administrative fees for storage or insurance.
  • High markups on gold and collectible coins with low liquidity.

Gold has high liquidity and is easy to sell at its valued price on the open market. Physical gold has several costs, including fees for storage, transportation, transactions, delivery, processing, and small purchases.

Investors have different reasons for owning gold. While some of them may select gold, there are those who simply want to take advantage of gold stability using an ETF. ETFs are easier to sell and liquidate quickly. IRS places limitations on the ownership of gold.

If you want ownership of physical gold, use a non-IRA fund and hold it in a safe place. To ensure you protect yourself from fraud, perform due diligence on the company or broker, before rolling over your 401K.

Select a Reputable Provider of Gold Investment that Can Give You All The Options

In the United States, there are hundreds of licensed and registered dealers and trustees to start your ownership in gold. We selected three of the most reputable providers of precious metals for your review. You can use the information to choose the best provider in meeting your investment needs.

1. Goldco

Goldco Review

We selected Goldco Precious Metals as the top provider of precious metals IRAs including gold and silver. Founded in 2006, the private-owned brokerage firm specializes in protecting assets and wealth. Goldco helps retirees, savers, employees, entrepreneurs, and investors protect their retirement savings using the rollover strategy.

They can roll over 401Ks, 403(B), and existing traditional and Roth IRAs. Goldco sells precious metals coins and bullion to individuals and investors. Their team of IRA experts assists customers with rolling over qualified retirement accounts.

Goldco commits to helping customers receive the full tax advantage on investments. They sell precious metals without using an IRA. There are associated fees for transportation and delivery.

The gold and silver metals provider does not store and administer precious metal IRAs. They work with a third party, Equity Institutional & Self-Directed IRA. Customers will need to select a reputable custodian to administer and track their assets in an IRA by IRS laws.

To start the rollover processing, Goldco opens a new Gold IRA for you. You will then have to fund your account with the assets in your 401K or existing IRA. Finally, Goldco will provide you with the resources to select the precious metals products of your preference.

Pros And Cons
  • User-friendly website to get free online information.
  • A-plus rating by Better Business Bureau (BBB).
  • Professional, ethical business practices.
  • Access to educational resources, such as videos and e-Books to help customers learn about precious metals.
  • Most recent prices of gold, silver, palladium, and platinum.  
  • Fifteen years building a reputation by helping IRA holders.  
  • Professional IRA Specialists, Executive Account Advisors, and Precious Metals Sales Agents. 
  • Third-party custodial and depository services.
  • The minimum amount to open an account is $25,000.

2. Augusta Precious Metals

Augusta Precious Metals IRA

Second, is Augusta Precious Metals as the runner-up to purchase precious metals. The premier gold company helps customers with portfolio diversification, education, and balance their retirement savings. Augusta empowers savers using knowledge, experience, and trustworthy advice.

The company commits to transparency and assisting investors with customizing precious metal assets. Augusta’s highly trained professionals are there with you every step of the way to help achieve your retirement and financial goals. They offer gold and silver IRAs, IRA coins, and precious metals cash purchases.

Customers can use Augusta Knowledge Center to read the latest market news and watch informational videos. You will have access to tools and resources including:

  • A Free Precious Metals Kit
  • RMD Calculator
  • Disclosures of Risk
  • Free Webinar
  • Price Chart of Precious Metals

Augusta Precious Metals sells common gold and silver bullion, premium gold and silver, and IRA coins. They are straightforward in advising about the risks involved with precious metals IRAs.

  • Personal agent to help guide customers.
  • BBB ratings of A+.
  • Triple-A rating from Business Consumer Alliance.
  • Recognition by IRA Gold Advisor as the Most Trusted Gold IRA Company in the US
  • Professional Coin Grading Service (PCGS). 
  • Member of the Industry Council for Tangible Assets (ICTA). 
  • Competitive prices for gold and silver. 
  • No online orders for customers.

3. Birch Gold Group

Birch Gold IRA

Founded in 2003 in Burbank, CA, Birch Gold Group has over 17 years of experience in the precious metals industry. The company is a trusted leader in the industry with a team of experts. They employ former wealth managers, financial advisors, and commodity brokers to help customers.

You will receive help to diversify your portfolio with top-graded platinum, palladium, gold, and silver. Birch Gold sets high standards for transparency, education, ethics, and efficiency. They are on a mission to educate customers on precious metals products. Birch offers over 25 products in gold, silver, platinum, palladium, and precious metals IRA.

You have access to educational topics, such as how to purchase precious metals and reasons to invest. Birch provides a yearly information kit at no cost to learn more about investment diversification. Stay updated on the latest news to help you make important decisions. Birch Gold will assist in moving your IRA, 401K, and other retirement accounts from stocks, bonds, and mutual funds to a gold or silver IRA.

  • Depository partnerships with Delaware and Brink’s Global for storing physical gold and silver.
  • Broad selections of precious metals.
  • A+ Better Business Bureau ratings.
  • AAA ratings by Business Consumer Alliance.
  • No penalties for moving 401Ks and existing IRAs to a precious metal IRA account. 
  • Access to valuable educational materials.
  • Third-party custodians.
  • No Rollovers for Conventional IRAs.  
  • No guarantees on product offerings once purchased and placed in a depository.