How do I Rollover my 401k to a Gold IRA?
Rollover 401k to Gold IRA. What if I told you that you could use your 401K funds to buy gold? You’d probably think I was crazy, but in fact there are a few different ways to do this and it’s actually not that difficult. This article explains how to rollover your 401K funds into a gold IRA so you can invest in the yellow metal with pre-tax money, which can help lower your overall tax bill and help your investments grow even faster.
What is a Gold IRA Rollover? Rollover 401k to Gold IRA
A Gold Individual Retirement Account (iRA) Rollover is when someone with an existing Individual Retirement Account (IRA) transfers their existing IRA into another type of retirement account. Some IRAs allow individuals to roll over their funds from one company offering an individual retirement account (IRA) product, such as SEP or Traditional IRAs, into another one.
If you decide to change your retirement account and move your existing funds into another IRA provider, you are considered to have made a rollover. How is a rollover of an existing traditional or Roth IRA different from funding another type of individual retirement account (IRA)?
With any new individual retirement account (IRA), you must meet certain income requirements for contributing. Most of these limits are based on your income and your filing status. If you have an existing traditional or Roth IRA, you might be able to move your existing retirement account over into another type of account without paying taxes on it. You can still keep that same tax deduction by rolling over into another traditional or Roth IRA.
For example, if you have an existing Traditional IRA and you want to move it into a Roth Individual Retirement Account (IRA), there are no taxes associated with making that move. On top of being tax-free, any gains or losses that your account has accumulated over time are tax-free as well. You’ll still be responsible for any applicable fees or administrative costs associated with rolling over an individual retirement account (IRA).
Why Should I Roll Over my 401K to a Gold Account?
Sure, right now you might be focusing on getting through your busy day job and enjoying your hard-earned weekends, but one day, that may all change. Whether it’s planning for retirement, providing for your children’s future or dealing with an unexpected life event such as a serious illness or death of loved ones, converting your traditional 401(k) into a Gold account can help ensure that you always have access to important resources at any time.
What makes Gold IRAs so great is that they give you more flexibility than ever before. A typical 401(k) account doesn’t allow for withdrawals until after you reach 59 1⁄2 years old, but with a Gold account, you can start withdrawing funds anytime from your initial investment up to your age 70 1⁄2.
But even if you have access to your funds, you might find yourself wondering how converting your traditional 401(k) into a Gold account can benefit you now. Let’s break it down so that you better understand why rolling over your 401(k) into an IRA—whether it’s a Gold account or another option—is such an important step.
Using A Gold Account, You Can: Access Your Funds Anytime. Using your Gold account, you can withdraw funds anytime from your initial investment up to age 70 1⁄2. You don’t have to wait until you’re 59 1⁄2 years old like with most other retirement accounts. This gives you access to your savings during times of emergency when they may be needed most. Use It As Cash Flow For Your Business.
If you plan on starting your own business, using your Gold account as cash flow can give you additional financial security when you’re first getting started. You can use these funds whenever necessary to keep your business running smoothly. Add To It Whenever You Want. After funding your original purchase of securities, many people find that they want more investment options for their future. With a Gold account, you can add to it at any time until age 70 1⁄2, giving you even more flexibility over your retirement savings than ever before.
What are the Costs Involved to Rollover 401k to Gold IRA
When converting your existing traditional or Roth account into a precious metals-backed retirement account, there will be associated fees. We want you to be fully aware of what these are before making your decision. When rolling over an existing Traditional or Roth 401(k) plan to metals, there is typically a custodial fee that is charged by your current custodian.
There is usually an additional fee charged by your metals provider for administering your account, as well as purchasing physical precious metals. The average cost of these services is approximately 0.6% of assets annually and can range from 0.5%-0.9%. Fees may vary based on assets under management, type of metal account you select, and other factors that affect costs directly and indirectly associated with rolling over your retirement account into precious metals.
We want you to know that there is never any sales pressure when speaking with sales representative from our recommended providers. You are in control of how you invest your money and the representative will be happy to answer any questions that you may have about rolling over an existing traditional or Roth account into precious metals.
Are There Tax Advantages When Rolling Over Into an IRA? Rollover 401k to Gold IRA
There are several ways you can go about rolling over your 401(k) into an IRA, but what is it exactly that you’re doing with these plans and why does it even matter? While it’s easy to simply think of IRAs as another retirement account, there are some specific benefits in choosing one type of plan over another.
If you currently have a 401(k) that you hold at work, or if you’re hoping to open one in 2018, it might be helpful for you to know which plans offer tax advantages when rolling over into an IRA. There are some differences between IRAs and traditional retirement accounts that could benefit your long-term savings strategy.
The main difference between traditional IRAs and Roth IRAs is in how you’re taxed. With a traditional IRA, your contributions are tax-deductible but you will have to pay taxes on all withdrawals, including earnings. For most people that end up taking out much more than they put in, traditional IRAs may be the better choice—this way you aren’t penalized for having saved money over time. However, if your income was particularly high during any given year (and therefore subject to a higher tax rate), then choosing a Roth IRA could be more beneficial for you because you can withdraw both your original contribution and any earnings without having to pay taxes on them.
What Kind of Products can I Buy in a Gold Account?
You can invest in Gold, as well as other precious metals like silver and platinum. You can buy bullion bars and coins, along with certificates that represent various percentages of precious metals. While stocks and mutual funds make sense for many retirement accounts, some investors prefer these tangible assets which have been considered good for millennia. Precious metals will typically increase in value over time when compared to traditional investments.
If you’re looking for bullion, look for products that have been manufactured by one of a few reputable mints. Investors and coin collectors like these brands because they hold their value more consistently than other manufacturers. If you buy from one of these mints, your investment will come with a certificate which can be used to verify its authenticity.
If you don’t want physical bullion, you can also purchase certificates of ownership that are not actual coins or bars. In many cases, these will represent percentages of specific coins or bars. You can store these in your iRA and pass them on to beneficiaries in your estate if desired. Alternatively, you may sell them back to your financial institution and exchange them for other assets when you choose.
Where Do You Store the Gold That you Purchased Through Your Account?
Gold IRAs are precious metal accounts that store physical bullion, which is different from just owning shares of a company. When it comes time to convert your investments into cash or transfer them elsewhere, you’ll have three options for cashing out your investments: selling them for cash, using them as collateral for loans, or rolling over your account into another retirement account.
If you choose to sell your investments, you’ll likely be subject to taxation on any gain. You can sell any amount you want in order to generate revenue, but if you cash out less than what you originally invested, then you’ll only be taxed on that portion of your gain.
If you want to use your investments as collateral for loans, you’ll also be taxed on any gains. The amount of tax liability will vary depending on how much you borrow and what your interest rate is, but it can still be significant if your investments have grown significantly in value. Finally, you can always choose to roll over your account into another retirement plan such as an individual retirement account (IRA) or Roth IRA.
How Long Does it Take to Get My Money into My Gold Account? Rollover 401k to Gold IRA
The speed at which you’ll get your money depends on how quickly your old employer’s plan administrator can process your request for a full or partial distribution. If you work for a big company, it shouldn’t take long at all. If you work for a small company that isn’t as technologically advanced, it could take several weeks before they process your request and send funds.
Also, some accounts charge an expense ratio, which can be deducted from your earnings every year. An expense ratio of 0.50% is on par with many mutual funds, but if you’re planning on holding your Gold IRA for more than a few years, that small cost will certainly add up. For example, $10,000 invested for 10 years in a 0.50% fee fund would have nearly $300 shaved off of its earnings by annual fees alone!
If you have funds in other retirement accounts, such as a traditional IRA or even an employer-sponsored 401(k), you may be eligible for what’s called a rollover. This is where your previous account sends your funds directly to your new Gold IRA—and it can save you thousands of dollars in fees.
The timing of your rollover is also important. Some providers will let you hold funds in your old account until they are safely transferred into your new one. Others require that you initiate and complete all transactions within a short window, meaning you’ll lose money if you don’t move fast enough.
If you’re planning on rolling over your old 401(k) into a Gold IRA, make sure you know how long it takes for funds to be transferred between institutions. Also, don’t fall victim to any pushy salesmen—your biggest priority should be securing your financial future.
What Type of Paperwork Do I Need to Invest in Gold?
In order to purchase precious metals like Gold, you need a Gold IRA (Individual Retirement Account). Unlike traditional IRAs, which allow individuals to invest in stocks and bonds, Gold IRAs allow investors to put their money into physical precious metals. That being said, there are certain documents and paperwork that must be filled out in order for you to receive your metal.
If you’re ready to set up your Gold IRA, and are looking for more information on what paperwork is required, contact one of our recommended providers below! An account representative can help walk you through all of the required forms that need to be completed in order for you to begin investing in your Gold iRA. Let’s get started today!
When you want to diversify your portfolio, there are no better investments than precious metals. When looking for information on what paperwork is required in order for you to purchase Gold, Gold IRAs or any other precious metal investment vehicle, contact an account representative today! An account representative can walk you through all of the paperwork that needs to be completed in order for you to receive your new Gold iRA and start investing right away.
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Our #1 Company Pick, Goldco
If you have an existing Individual Retirement Account (IRA), and want to convert it into physical gold, you can roll over your assets from a financial institution into a Precious Metals account. You will still be able to enjoy tax-deferred growth of your investment, but in order for your gold holdings to qualify as an asset in your self-directed retirement account, they must be physically delivered.
In addition, you can invest in silver and other precious metals products with your IRA. Goldco has been a trusted leader in the gold space since 2006, and has the highest level of customer service ratings with all the major ratings services including: Trustlink, BBB, Trustpilot, and more.
Just click on the banner below, request info, and they will get in touch with you shortly!
0ur #2 Company Pick: Augusta Precious Metals
Augusta Precious Metals makes buying physical gold and silver bullion a breeze with its buy-and-store program. Customers simply open an IRA or Self-Directed 401(k) account, fill out some paperwork, transfer their existing retirement account over, buy a storage plan and—done!—they’re set up with a physical precious metals portfolio they can call their own. Prices on investment-grade gold and silver bullion are always competitive, too.
After deciding that you want a physical precious metals portfolio, then figuring out how and where to buy physical gold and silver is probably next on your list. Fortunately, Augusta Precious Metals makes buying gold easy. Click the banner below, request info, and one of Augusta’s helpful representative will be in touch with you promptly!