You work hard and set money aside to provide for a comfortable retirement. Like many other Americans, you are worried about stock market volatility and the Fed printing more money, effectively reducing dollar’s purchasing power. So like many, you are thinking about transferring your 401k into physical gold, as it can add unique protection to your savings and future purchasing power.
Below we’ve outlined the process in an easy, step-by-step guide to give you a general overview of the process.
1. Check your 401k’s eligibility.
Usually your 401k is eligible if you are over 59 and a half or if you are no longer working for the employer that provided the plan.
2. Open a precious metals IRA account.
You will need to open a self-directed precious metals IRA account. As with any other government-approved retirement account, it will offer you same tax benefits, all while enjoying an opportunity to invest in physical gold.
3. Choose how much you want to allocate to the purchase of gold.
Decide how much you would like to invest in gold – you can invest your entire 401k amount, or any part of it that you are comfortable with. You can also diversify your IRA and invest in the precious metals, such as silver, platinum and palladium.
4. Liquidate the applicable funds in your 401k and finish the transfer paperwork.
Once you have decided how much you want to transfer to your new IRA account, your precious metals IRA custodian will liquidate the applicable assets and transfer the money into your new account. Since the funds are being transferred between qualified retirement savings accounts, there will be no tax penalties. Any good precious metals company will gladly help you with any paperwork questions you might have and will make the process easy and worry-free.
5. Choose your precious metals.
Now that you have funds in your new IRA, it’s time to invest – you can choose between gold bullion or proof coins. Your precious metals specialist can go into details about each of the options and their benefits so you can confidently select those that best suits your needs and goals.
6. Invest in the precious metals of your choosing.
Once you decide which type of gold works best for you, your IRA custodian will purchase the gold on your behalf.
7. Store your gold.
Once purchased, your gold will be sent to an approved metal depository; here, they can be stored in allocated or unallocated accounts.
Final thoughts
As you can sees it is easy to transfer your 401k into gold, but as every situation is different, we strongly recommend that you speak with a qualified precious metals specialist who can answer any questions that may come up and help you through the process step-by-step. When choosing a precious metals company, look for experience, a good record with the Better Business Bureau and excellent customer reviews. Ask questions during your initial consultation and only move forward once you feel confident that this is the right company for you.
