The Quick Guide to Rollover a former 401k to Gold

gold barsTo rollover a former 401k to gold is a method used by savvy investors to exchange money type assets such as, stocks or bonds that are in their 401k accounts into actual precious gold. There is a certain strategy that goes along with this method and this method can only work under certain circumstances, however, when the method can be applied, it can be extremely advantageous to the investor.

This method continues to become more popular every day as more investors learn about it. There are reasons why investors are so keen on the method of learning to rollover a former 401k to gold.

Reasons Why Investors Are Finding the Rollover a Former 401k to Gold So Enticing:

1)      This method doesn’t require any new investments from you.

2)      The new precious metals IRA’s give the investor a lot of flexibility.

3)      Investors are able to differentiate with their physical assets.

The Method of Owning Gold without Spending Extra Money – Rollover a Former 401k to Gold

The ownership of gold in the United States keeps growing in popularity as more people learn about its existence. Individuals who are either in the middle class or working class usually do not have access to the funds required to purchase or invest in gold. Their budgets just will not allow them to do it with the way the economy has been. Over the last fifteen years, wages and disparaging employment have made it more and more difficult for households to protect their money by making investments in gold or other types of precious metals, such as silver. With the way the economy is nowadays, both that of individuals saving for retirement and investors are aware how important and essential it is to vary their portfolios, and try to evade against inflation and the deflation of the dollar.

If a family finds themselves low on money, but still know they require an investment in gold to help secure their financial future, how are they to do that? The method of learning to rollover a former 401k to gold is the perfect answer. It provides the family with a safe, simple, and extended-term resolution to the problem of trying to own gold, without trying to come up with money to invest in it.

How to Use the Rollover a Former 401k to Gold Method

Using the rollover a former 401k to gold method is simple and completely safe. It gives you the ability to own gold and other types of precious metals, such as, silver, without requiring any additional investment money from you. Below I will walk you through it step-by-step.

Steps to Use the Rollover a Former 401k to Gold Method

  • Step 1: Begin by opening an IRA with a financial company that offers the option of a Precious Metals IRA.
  • Step 2: Set up a meeting with your boss or your 401k administrator. Let them know that you would like to change your 401k and are planning on doing a rollover a former 401k to gold. This method will require a couple of documents to be filled out that authorize this change with both your current 401k administrator or boss and your new Gold IRA account.
  • Step 3: You will be required to transfer all of your 401k funds to your new Gold IRA. You will be given ample time to make the transfer of the funds without being charged taxes or penalties.
  • Step 4: At this point you will need to work side by side with an expert in gold to make sure you are investing in the best gold for your investment goals and needs. You would do the same here if you were to invest in other precious metals as well. Keep in mind that not all gold is considered the same. You will have multiple options to choose from. This will include bullion, proof coins, and historic numismatic coins. It is also important to know what specific requirements the IRS places upon different types of gold and other precious metals that are allowed to be invested in this type of an account.

When Are You Allowed To Rollover a Former 401k To Gold?

There are specific times when you can rollover a former 401k to gold. Individuals who are saving for retirement and investors use the method in certain circumstances. Below are some examples of when it is okay to rollover a former 401k to gold.

1)      Rollover a 401k From an Employer You No Longer Work For: If you had a 401k account or another type of retirement account at a past job, you are able to change the mutual funds, stocks, and bonds in this old account into gold using a Gold IRA account.

2)      Rollover a 401k From an Employer You Still Work For: You can change the mutual funds, stocks, and bonds in your current 401k plan into gold using a Gold IRA account in the same type of process; however, you will still be allowed to keep your current 401k even after you have opened your Gold IRA account.

3)      Rollover a 401k While Being Self Employed: You have more options with being self-employed. You will have the option of changing all or just some of your current Solo-k by using the rollover a former 401k to gold method.

What Types of Retirement Accounts Are Allowed To Be Used In The Rollover A Former 401k To Gold Method?

The rollover a former 401k to gold method can be used with various types of retirement accounts. Below I have listed examples using the most commonly used accounts in the method.

  • 401k to Gold IRA: This is the most popular account for the rollover a former 401k to gold method. This method takes the 401k plan and changes it into a regular IRA account. This method lets you make contributions to your gold IRA tax free, and you will not pay any taxes until you withdraw the money at the time of your retirement.
  • 401k to Gold Roth IRA: This is a common method investors use to rollover their 401k to a Roth IRA. This method has the investor pay taxes right away; however, no taxes will be due at time of retirement. This is the perfect plan for investors that think taxes will sky rocket over a period of time.
  • 401k to Gold SEP IRA: This method of rolling over the 401k to gold is used by individuals who are in a Simplified Employee Pension IRA, also referred to as, SEP IRA plan. This method is very easy and a very effective method to owning gold by using an existing retirement plan account.

Finally, a 401K plan helps people stow away for retirement. Keep in mind that gold is a commodity like any other. It contributes to diversifying your assets and diversification is extremely important as it is used to reflect your risk tolerance. This is something a lot of people are doing nowadays with the instability of the financial markets.

This was a guest post.