How to Buy Gold With Your 401(k)

This is one of the questions that keeps popping up in the minds of retirees who are looking to add some sparkle to their retirement. Thanks to Tax Code exception, IRAs are allowed to own certain precious metal coins and bullion. Examples include American Gold Eagle coins; Canadian Gold Maple Leaf coins; American Silver Eagle coins; American Platinum Eagle coins; and gold, silver, platinum, and palladium bars (bullion) that meet applicable purity standards. For example, gold bars must be 99.5% pure or better and silver bars must be 99.9% pure or better.

Gold and silver in your retirement account.

Precious metals like gold and silver in your retirement account can provide tax advantages, deferring taxes on gains until retirement or even making them tax free forever.

And the process is simple: rollover cash from your 401(k) or other retirement plan, or make annual contributions up to IRS limits, into a “self-directed” IRA from one of our connected custodian partners and then choose your investments. Assets are stored in secure vault storage and available to sell or take distributions from at any time.

IRA Free Silver with GoldCo

Custodians manage your gold IRA

Large, conventional brokerage firms don’t offer gold IRAs. Instead, you need to work with a custodian that specializes in administrating gold IRAs. Custodians help you manage the paperwork and tax reporting for your gold transactions to meet the IRS requirements for retirement planning.

More importantly, they manage the unique storage needs involved with holding physical gold bullion. The IRS does not allow you to personally store precious metals owned via a gold IRA at home. If you take personal control of the physical gold from a self-directed IRA, the IRS counts it as a withdrawal—making you potentially subject to taxation and early withdrawal penalties—and in some cases the IRS is empowered to shut down your entire account.

Gold IRA fees

Free Silver in RIA

A precious metals IRA trustee will usually charge a one-time account set-up fee (maybe $50 to $100), an annual account administrative or maintenance fee for sending account statements and so forth (maybe $50 to $300 or an amount based on the account value), and an annual fee for storage and insurance (maybe $100 to $300 or an amount based on the value of the stored assets). Additional fees may be charged for transactions including contributions, distributions, and commissions for precious metal purchases and sales (maybe 2% to 5%).

How can I transfer my 401k to gold without penalty?

If you are wondering how to move 401k without penalty, the answer is simple: complete your account transfer within 60 days, or better yet, do a 401k rollover to a Precious metals IRA. With an account rollover there is no risk of triggering the 60-day IRS rule.

Should I convert my 401k to gold?

If you’re looking for a new destination for the funds in your 401(k) and you want something that doesn’t closely follow the stock market or the economy, then a 401(k) to gold IRA rollover could be a good option. That said, it’s always important to diversify your investments.

Are gold IRAs a good idea?

A Gold IRA often comes with higher fees than a traditional or Roth IRA that invests solely in stocks, bonds, and mutual funds. A gold IRA can serve as a good hedge against inflation but well worth considering that it is also concentrated in a single asset class.