401(K) To Gold Rollover Guide (2022)

April 7, 2022

401K To Gold Rollover Guide

Welcome to my "401(k) To Gold Rollover Guide"!

If you already have a 401(k) account, you might think it's the best place to put your retirement funds.

A 401(k) is, on the other hand, linked to the stock market in a way that other retirement plans are not.

While a strong market implies your 401(k) is likely to be in good form, any market downturns could jeopardize your savings and make it less likely that you'll be able to retire comfortably when you desire.

By investing in a gold IRA, you can considerably reduce your risk of these problems. As a result, when you want to open a gold IRA, the 401(k) to gold rollover process is a quick and straightforward alternative.

While there are a variety of ways to put money into a gold IRA, the rollover procedure offers several tax benefits that you won't find anywhere else.

This guide will walk you through the 401(k) to gold rollover procedure and which companies can assist you with the process.

401(k) Account – What Is It?

A 401(k) plan is a type of retirement account that allows you to contribute to an employer-sponsored account on a regular basis.

The biggest advantage of contributing to a 401(k) plan is that your company will match some or all of your payments.

Another significant advantage of contributing to a 401(k) plan is that your income taxes will be reduced in the year you make the contribution.

The Disadvantages of a 401(k) 

Despite the advantages of opening a 401(k) account, there are certain disadvantages to be aware of, the most significant of which is that the amount of savings in your account is subject to the health of the stock market.

If you've put a lot of money into assets that are closely linked to the market's performance, you could lose a lot of money if the market falls apart.

You will only have this account as long as you are employed with your present employer, even if you don't have a 401(k) account that is market-linked.

While moving your 401(k) to another IRA account is not difficult if you quit your work, you may want to be proactive and switch to a gold IRA ahead of time.

Facts You Should Know About Gold IRA

A gold IRA is a type of individual retirement account that allows you to invest in gold and have it count as a qualified retirement investment.

Many gold IRA accounts also allow for the purchase of silver, platinum, and palladium, among other precious metals.

If you're considering putting money into a gold IRA, bear in mind that you can buy stocks that are tied to precious metals as well as physical metals like coins and bullion.

If you choose to convert your 401(k) to gold, the gold IRA must be kept separate from your regular retirement account.

The real gold you purchase will need to be held unless you invest in stocks related to precious metals, which is the fundamental distinction between a gold IRA and other IRA accounts.

Your fees will be higher if you invest in precious metals mutual funds or exchange-traded funds than if you invest in actual gold.

Gold IRA Accounts and IRS Regulations

Before you conduct a 401(k) to gold rollover, you should learn more about the IRS's particular rules for gold IRA accounts.

For starters, no broker or typical custodian can assist you open a gold IRA account.

Instead, you should transfer your 401(k) to a gold IRA through a business like Augusta Precious Metals, which have the appropriate papers to manage gold IRA accounts.

Despite the fact that the assets kept in a gold IRA differ from those held in a traditional 401(k), the rules of a gold IRA are comparable to those of any other IRA account.

The contribution limits for 2021 have been established at $6,000. You can put an extra $1,000 into your gold IRA account each year if you're at least 50 years old.

You can withdraw money from your account without incurring penalties once you reach the age of 59.5. Any withdrawals you make before that age will be subject to an extra 10% tax.

While the physical gold you invest in must be stored in an IRS-approved facility, that facility cannot be your house, as that would result in a tax-free withdrawal.

What Are the Benefits of Investing in Gold?

There are numerous reasons to consider investing in a gold IRA, the most important of which is the tax benefits associated with this account.

For example, donations to the account are made before taxes are deducted, thus taxes aren't deducted until you withdraw money.

It's also worth noting that gold stored in a gold IRA can normally be passed on to a recipient without incurring any inheritance taxes. When compared to other investing options, gold offers more flexibility.

There are various benefits to investing in a gold IRA, the most notable of which being the tax advantages. Donations to the account, for example, are made before taxes are deducted, therefore taxes aren't deducted until the money is withdrawn.

It's also worth mentioning that gold in a gold IRA can usually be passed on to a beneficiary without incurring inheritance taxes. Gold provides more flexibility than other investment possibilities.

The Benefits of a 401(k) to Gold Rollover

If you're about to lose your job or switch employers, you have a lot of alternatives for what to do with your current 401(k) account. Many employees opt to cash out, even if it means paying additional withdrawal fees to get their money. While this may appear to be a sensible choice, it's crucial to remember that if you're in a tax bracket higher than 12 percent, taxes can quickly add up.

Even if you quit your current employment, you may be able to keep your 401(k) account intact. The disadvantage of this choice is that if you start another 401(k) account at your new employer, you would be responsible for paying maintenance costs on two funds. It may be possible to consolidate your existing 401(k) account with the one you form with your new company in specific circumstances.

A 401(k) to gold rollover, which allows you to move all of the money in your 401(k) into an IRA account, is the fourth and possibly greatest choice for you to consider. With less costs, your investment alternatives will vastly improve. This method is also great if your account is managed by an experienced trustee.

Before you begin, keep in mind that there are two different rollover kinds to choose from: direct rollover and indirect rollover. If you choose an indirect rollover, you can get a check from your 401(k) provider, which you can deposit directly into your bank account. You'll have 60 days to place your order after that. You will have 60 days from this point to transfer your retirement funds to a new IRA, which can be a gold IRA.

If you fail to meet the 60-day limit for an indirect rollover, the rollover will be treated as a withdrawal, and you will be taxed. As a result, you should strongly consider employing the direct rollover method. This can be done with the help of a company that specializes in gold IRA accounts.

Sending your present 401(k) money into a gold IRA with a direct rollover requires a check to be written to a new custodian, regardless of which company you work with. This check can be sent to you to pay the custodian or it can be sent to the custodian directly. The majority of businesses that help with 401(k) to gold rollovers can start the procedure over the phone.

If your 401(k) is government-sponsored, you'll be required to fill out additional documentation, after which the rollover procedure can take anywhere from 2 to 6 weeks to complete. Keep in mind that a 401(k) account holder is only allowed one rollover per 12-month period. Custodian-to-custodian transfers, on the other hand, are permitted indefinitely.

Transfer vs. Rollover: What's the Difference?

It's critical to understand the difference between a transfer and a rollover before deciding to do a 401(k) to gold rollover. While these names are frequently used interchangeably, there are some significant distinctions between them.

A rollover, for example, is when your 401(k) money are paid to you before being transferred to another IRA account. The custodian of your 401(k) account will be allowed to pay money to the custodian of your new IRA account when monies are transferred.

If you wish to avoid withdrawal costs, the rollover process requires you to put your 401(k) funds into a gold IRA account within 60 days.

While there are certain tight regulations to follow when rolling over your account, transferring it is a lot simpler process with no fines or penalties.

The custodian of your 401(k) can transmit money to your new custodian through a normal wire transfer once you've set up a gold IRA, avoiding the 60-day limit. Transfers are referred to as direct rollovers by many gold IRA businesses, and this is the path to take.

The Pros of Moving to a Gold IRA

If you're debating whether or not to keep your 401(k), there are numerous concrete advantages to transferring your savings to a gold IRA. These advantages include:

  • Allows you to make your own investment decisions – As previously stated, a 401(k) account does not offer a wide range of investment options. Moving money to an IRA, on the other hand, allows you to invest in precious metals, bonds, equities, and real estate.
  • Allows you to control fees - While many people who are considering a gold IRA are concerned about excessive fees, this does not have to be the case. Your gold IRA account can be managed at a reasonable fee if you utilize a robo-advisor.
  • Even while you shouldn't take cash from any retirement account until you've retired, the costs for doing so are far lower when you remove from a gold IRA than when you withdraw from a 401(k).
  • Ability to select a trustee - When you invest in a gold IRA, you have the option of selecting a platform. The top platforms provide round-the-clock customer service, reasonable costs, and sophisticated investment tools to assist you in making informed financial decisions.
  • If you wish to convert your 401(k) account into actual gold, several investment platforms allow you to open a partial or full Roth IRA, which allows you to make tax-free withdrawals during retirement. There are no minimum withdrawals after you reach a particular age, unlike certain IRA accounts.

Understanding the Costs of a Gold IRA

When you complete the rollover process, you will be required to pay certain fees, just as you would with any other IRA account.

Generally speaking, your fees should be cheaper than when you had a 401(k) account. The following are the most prevalent charges:

  • Yearly fees - A gold IRA has no annual fees, therefore your costs should be kept minimal.
  • Load fees - While some mutual funds charge up to 3% in load fees, these fees can be avoided by simply maintaining the funds.
  • Management fees - If you have your gold IRA handled by a robo-advisor, your annual management fees might be as little as 25 percent.

Companies That Can Assist With the Transition

While there are many businesses that can help you complete the 401(k) to gold rollover procedure, the following are the top three that you should consider:

#1 Goldco

Goldco has over a decade of experience managing precious metals IRA accounts, so you can rest assured that your money is being prudently invested.

Goldco is noted for offering consumers with helpful resources such as eBooks, videos, and up-to-date gold prices, as well as exceptional customer support.

When you open a gold IRA account with Goldco, you will benefit from cheap annual fees and a free rollover kit for your gold IRA. Keep in mind that Goldco has an A+ rating with the Better Business Bureau.

#2 Birch Gold Group

Birch Gold Group is a respected precious metals dealer with a reputation for superior gold IRA accounts. They've been in business for about two decades and have a long list of happy clients. In fact, they've served over 10,000 consumers throughout the years.

After you've completed the rollover, the Birch Gold Group will assist you in deciding which bars and coins to purchase.

They also have a lot of instructional materials you may look at if you want to improve your investment expertise. Every year, they distribute a free information packet.

#3 Augusta Precious Metals

Augusta Precious Metals is a multi-award-winning precious metals dealer with a fantastic gold IRA account.

Keep in mind that a gold IRA at Augusta Precious Metals requires a $100,000 minimum commitment. However, you'll discover that their annual prices are reasonable, and that customer service is available anytime you have a query.

Augusta Precious Metals makes it simple to open a gold IRA. One significant advantage of investing in this gold IRA is that they will price-match gold coins and bullion against the competitors.


As you can see, converting a 401(k) to gold is quick and straightforward if you work with an investing firm that allows a direct rollover.

You'll be able to continue building your retirement savings by investing in gold from here.

You may be confident that your 401(k) assets will be transferred to your new gold IRA account without trouble or delay if you choose to work with one of the organizations listed above.

Thank you so much for reading my "401(k) To Gold Rollover Guide"! If you have any comments or questions, feel free to leave them in the comments section below.

Anis is a digital marketing expert that enjoys writing blogs and helping people avoid scams online; he is passionate about investing in real estate and gold; in his free time, Anis loves playing football, going to the gym, and hanging out with friends.

By the way, if you are tired of scams and want to invest with a legit gold company, check out my 6 top legit gold IRA companies of 2024!


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