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Convert 401k to Gold

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Convert 401k to gold. What exactly does it mean to convert your 401k to gold? It’s simple; when you convert your 401k to gold, you trade in your paper assets (like stocks and bonds) for physical gold that you store in a safe place outside of your 401k or IRA account. Not only can this help diversify your portfolio, but it can also protect the value of your money in the event of an economic downturn or even a bank failure—which are becoming more and more common these days. The best part is that converting a 401k to gold is relatively easy if you follow these five steps.

The 401k Contribution Limit

The current IRS limit for annual employee contributions is $18,000 (up from $17,500 in 2013). If you are age 50 or older, you may contribute an additional $6,000 per year. Of course, not all of that money has to go toward gold-based investments: There are plenty of traditional investment options within 401(k) plans. However, if you have already maxed out your other investment opportunities—or if gold remains your main area of interest—it’s possible to roll over an existing 401(k) into a self-directed gold IRA and still remain within IRS guidelines. Here’s how it works.

If you’re over age 591⁄2, you can withdraw your 401(k) assets at any time without incurring taxes or penalties. However, if you are under that age and you take early withdrawals, you’ll typically owe income tax as well as an additional 10% tax penalty. In addition, there may be certain restrictions on how much money is available for withdrawal. If your plan offers loans (typically called hardship withdrawals), for example, you may have already used up that option before reaching retirement age. But even with these restrictions in place, a rollover IRA can still be an effective way to tap into your existing investments—in a more tax-efficient manner—so that you can make future investment decisions based on your own needs and preferences.

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Convert 401k to Gold

You’ll typically need two things before you can roll over your 401(k) into an existing gold IRA: First, you’ll need to move your money out of its current account and into an account at your broker or custodian. Second, once that money is in place, you can then wire it over to your new gold-based investment account—or request a check for physical delivery. To keep with IRS guidelines, make sure that you transfer both assets—your cash balance as well as any future investments based on those funds—at once.

The Difference Between Precious Metals IRAs and Traditional IRAs

Traditional IRAs are typically invested in stocks, bonds and mutual funds. You can’t invest your contributions in gold or other precious metals. However, you can convert your traditional IRA into a self-directed precious metals IRA. A self-directed precious metals retirement account is an account that lets you buy and sell physical gold, silver and other tangible assets. Essentially, converting your traditional IRA into a precious metals retirement plan gives you access to investment opportunities beyond just stocks, bonds and mutual funds; it allows you to buy, hold and sell actual coins or bars of gold.

As long as you have an active, traditional IRA, you can convert it into a precious metals retirement account without paying any tax on your contributions. For example, if you contribute $15,000 annually and convert that amount into gold coins worth $15,000 today (assuming they’ll maintain their value over time), then when you withdraw that amount in retirement, you won’t owe income taxes on it. Just keep in mind that once converted to a precious metals plan, you’ll need to keep your gold holdings inside of your retirement account. You can’t withdraw them and sell them for cash unless you want to pay capital gains taxes. If selling from your account isn’t an option for whatever reason, then having gold in retirement savings may not be ideal for you.

Convert 401k to Gold

convert IRA to Gold

In addition, with precious metals IRAs, you can choose whether to have your retirement plan invest in coins or bars. For example, if gold is currently trading at $1,400 per ounce, then buying gold bullion bars for $1,400 per ounce means you’ll have 1-ounce silver bars worth their current spot price. You can convert your traditional IRA into a precious metals retirement account once every calendar year. Just remember that once you convert it, you won’t be able to withdraw contributions until age 591⁄2.If converting your traditional IRA into a precious metals plan isn’t ideal for your financial situation or goals, there are other ways to invest in gold and other precious metals without opening up another investment account.

7 Steps To Convert A Traditional IRA To A Precious Metals IRA

Take one step at a time and you’ll see it is easier than you think. Trust me, I’ve seen people do it! You can too! I believe in you!!

1. Open an account with a Precious Metals Dealer.

2. Determine how much of your existing portfolio that you would like to convert into physical precious metals.

3. Decide what types of metals and amount (e.g., Silver Dollar, Quarter, etc.).

4. Withdraw funds from your Traditional IRA or 401k.

5. Deposit funds into new Precious Metals Account.

6. Have metal(s) shipped directly to you or pick up locally at dealer location(s).

7. Convert your traditional retirement account into a Precious Metals Retirement Account!

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Steps To Convert A Traditional IRA To A Gold IRA:

It’s simple, really…

1) Open an account with a gold dealer;

2) Withdraw funds from your Traditional IRA or 401k;

3) Deposit funds into new gold account;

4) Have gold delivered directly to you or pick up locally at dealer location(s);

5) Convert your traditional retirement account into a gold retirement account!

Steps To Convert A Traditional IRA To A Silver IRA:

It’s simple, really…

1) Open an account with a silver dealer;

2) Withdraw funds from your Traditional IRA or 401k;

3) Deposit funds into new silver account;

4) Have silver delivered directly to you or pick up locally at dealer location(s);

5) Convert your traditional retirement account into a silver retirement account!

Steps To Convert A Traditional IRA To An All-Metals Account:

It’s simple, really…

1) Open an all-metals account with any one of our dealers (the process is almost identical for each one).

2) Withdraw funds from your Traditional IRA or 401k.

3. Deposit funds into new all-metals account.

4. Have metals delivered directly to you or pick up locally at dealer location(s).

5. Convert your traditional retirement account into an all-metals retirement account!

What are you waiting for?That’s it! You’ve successfully converted your Traditional IRA into any type of Precious Metals Investment Account that you choose! Enjoy your newfound freedom, peace of mind and financial security today!

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Final Thoughts on Converting Your Traditional IRA To A Precious Metals IRA

If you decide that converting your traditional IRA to precious metals is right for you, there are quite a few steps involved in making that happen. For one thing, once you’ve converted your traditional IRA, it can be difficult (if not impossible) to reverse that decision. If you want out of precious metals in five years and decide not to rollover your account into an annuity at year four, there’s no way back. Be sure that’s something you’re comfortable with before taking action.

Finally, remember that when you convert your traditional IRA to precious metals, there’s no way around paying taxes on any gains in value between then and now. If you have had your IRAs for decades and they’re only worth $20,000 today—but expect them to be worth $300,000 in ten years—you can’t just convert everything at once without incurring enormous tax bills. Instead, spread out your conversions over time so they don’t eat up all of your profits in one go. This strategy will help you retain more of those profits by spreading them out over time and may also reduce your taxes.

Convert 401k to Gold

convert 401k to gold

Augusta Precious Metals is One of our Top Picks

If you’re looking to convert your old 401(k) account into something more valuable, check out Augusta Precious Metals. Augusta Precious Metals provides exceptional service and selection. They offer free shipping with any purchase of $1,000 or more. They have become one of our top picks because they are: Committed To Customer Service: Augusta Precious Metals is committed to providing customers with excellent customer service. Customers rave about how quickly their products are shipped after ordering and how easy it is to reach representatives when they have questions or concerns. They provide 24/7 email support and telephone assistance as well as fast response times if you want help on social media channels.

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