Gold 401k Rollover Guide

The charm and value of precious metals are almost impossible to resist, particularly in the case of gold. According to many, it’s the greatest investment in the world owing to the lucrative returns it provides to investment portfolios.

Gold bullion

While approaching retirement, many people become aware of the benefit of investing in precious metals. Nevertheless, most 401k retirement plans don’t allow employees to become direct owners of physical gold.

There are, fortunately, other indirect ways to make this happen.

The basics

A 401k plan refers to a specific self-directed retirement savings plan sponsored by employers. It’s offered by a multitude of employers, allowing Americans to enjoy their retirement years by relying on the tax advantages of this investment plan. Employees can use part of their salaries to invest in the long-term, while a large number of employers match their contributions either partially or entirely. Read more about the history, taxation, rollovers, and technical details of 401k.

Let’s assume an employee invests $150 per salary into his/her 401k plan. If the employer wants to make a matching contribution, he/she will invest another $150 to the plan. Nevertheless, the IRS imposes some limitations regarding contribution. For example, in 2021, employees are permitted to invest as many as $19,500 from their salaries into their 401k plans. Individuals over fifty can contribute a maximum of $6,500 annually.

Fund managers are usually held responsible for handling 401k plans. Employees are usually offered a wide range of investment options for the purpose of diversifying their investments, mainly via different mutual funds, such as bonds, index, and other funds. Nevertheless, most investors wish to shift part of the assets from their portfolios to commodities.

Can you invest in gold?

Gold investing isn’t entirely feasible with 401k plans, as a limited number of them enable investors to invest in gold bullion. Most of them impede investors from making direct investments into this precious metal. Nevertheless, there is no reason for disappointment, as individuals can make gold investments with the help of mutual funds and ETFs (Exchange-traded funds.)

Investing in gold for the future

Individuals who cannot make investments in bullion can invest in this commodity by purchasing paper gold via mutual funds. The job of investors is to choose either one or multiple mutual funds by holding stocks of special companies engaged in the mining industry. Go to this site,, for some advice on selecting a mutual fund.

401k plans with a brokerage alternative provide investors with the freedom to invest in a wider asset range through a brokerage account, which provides access to all forms of gold investments. ETFs are undoubtedly a simple option of getting exposure to this precious metal. The value of ETF shares undergoes changes in the course of the trading day and can be traded only once a day.

What is self-directed IRA rollover?

The 401k plans of some employees offer no access to gold investments. These people, however, shouldn’t be disheartened, as they can opt-out of the 401k plan and set up a self-directed IRA. Such an option provides investors with access to all kinds of gold investments, such as mutual funds, stocks, exchange-traded funds, futures, and options.

Precious metal IRAs are special accounts that permit investors to include gold coins and bullion, along with other precious metals as part of their investment. When an employee with a 401k savings plan leaves his/her job, such as an employee about to retire, he/she can rollover the money to a precious metal IRA. However, if the person is still employed, the worker can contact the employer to ask about the possibility of using the in-service withdrawal option, which offers employees their 401k money before retirement.

Employees shouldn’t be worried about paying a tax penalty, as they can avoid it by reinvesting their funds into another account in a two-month period. Have a look at this guide to gold 401k rollovers for useful information on the topic of such investments. Keep in mind that traditional IRAs also prevent employees from investing in physical gold. Only precious metal IRAs offer the desired option.

A final note

Consider all your options before deciding on the best action for your future.

You should enjoy your retirement days to the fullest!


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