Your retirement savings can be transferred to a Gold IRA, which allows you to invest in physical gold and other precious metals, depending on your investment goals and risk tolerance. It can diversify your portfolio while protecting you from inflation and economic uncertainty. In fact, retirement plans for most precious metals at USAGOLD start with a rollover. Current law allows transfers from IRAs as well as transfers from qualified retirement plans, such as 401 (k), 401 (a), 403 (b), 457, Thrift Savings Plan (TSP), and annuities.
We have plenty of experience with this process and can help you get through it with a minimum of brain damage. Q: Should I buy gold for my IRA or 401 (k)? A. For conservative, risk-averse investors who are concerned about economic uncertainty and instability in the financial system, the answer is clearly “yes.”. Former Fed Chair Alan Greenspan recently remarked: “Gold is a good place to invest money these days because its value as a currency is outside the policies pursued by governments.
The reasons for owning gold within a retirement plan are the same as owning gold outside the plan. We currently work directly with two escrow companies that offer self-directed plans. And you can buy and sell gold or silver as often as you want as part of your Gold IRA without a taxable capital gains event. Brinks and Delaware Depository are two of the most respected companies that offer IRS-approved storage of IRA gold and silver.
Just make sure that the money is credited to your Gold IRA within 60 days from the specified withdrawal date of the money from your 401k. Gold IRA plans are typically self-directed IRAs, which allow for more diverse investments than a traditional IRA. A gold IRA was made possible by the Taxpayer Relief Act of 1997 and is a type of long-term retirement account in which a custodian bank stores precious metals for the account holder. Advantage Gold LLC also offers a fee-free “repurchase program” for all precious metal products it sells and processes your transfer of 401 thousand into a Gold IRA free of charge.
In any case, make sure you hire a company that is fully licensed and insured as a Gold IRA provider. When you convert your $401,000 to a gold IRA, you can choose one of the different types of IRAs — a traditional IRA, a Simplified Employee Pension (SEP) IRA, a spousal IRA, or a Roth IRA. Many other Gold IRA companies require you to contact and arrange precious metals custody services and storage yourself. You can buy gold coins and gold bars, as well as other precious metals, in a self-managed IRA or 401 (k) set up with an escrow company.
The rollover is necessary because a self-managed gold IRA is a special type of retirement account that has specific IRS rules that govern how the account must be set up and managed and what fixed assets can be held in the account. However, aside from setting up your account for the first time, the various Gold IRA companies vary greatly in terms of the level of services they offer directly. The IRS has a list of specific fineness requirements that all precious metals must meet before you can include them in your gold IRA. Once you’ve opened your Gold IRA, you can contact the company that manages your 401 (k) account to begin the rollover process.
If that’s the case, you’ll either have to wait until you’re older or have left the company — or try to raise the necessary funds to open your Gold IRA from another source.