Rolling your 401k in a Gold IRA is extremely easy. Fill in the form below with your contact details and you will receive a gold IRA guide and advice from the top rated gold IRA company in America. The process is extremely easy, and is 100% tax free if you follow the IRS guidelines correctly.
So, it goes without saying that you need to deal with a reputable precious metals company that has minimum number of complaints registered against them as it will help you in securing your money, otherwise you may face some issues.
Rolling 401k into Gold IRA
IRA is abbreviation for “individual retirement account”. Silver has always been considered one of the most popular precious metals and has been used as money on many occasions throughout history. Paper dominated assets can be converted to physical silver since the IRS now allows inclusion of precious metals in an IRA account.
Unfortunately, investing in ETFs and mining stocks is not the same as investing in precious metals. Precious metals are tangible assets. ETFs are like any other paper asset, they’re susceptible to the same factors of volatility of the stock market, inflations, company earnings and corporate fraud. These are the very things you’re protected from when you invest in gold.
In fact, many experts are comparing the conditions today back to the conditions in 2009 when the stock market was at a high of 14,000 points. At that time many people held onto their stocks and six months later the stock market went from 14,000 to 6,700 with many people losing over half of their retirement accounts.
401k rollover to gold IRA process
Though investing in a Gold IRA account can be a simple process, no more complicated than investing in a traditional IRA, there are things every savvy investor should know. The truth is there are numerous gold and silver “investments” out there that should be avoided.
To move your IRA money into physical gold and silver, you need to roll the funds over from your traditional IRA into your self-directed IRA. The IRS lets you roll over IRA funds once in every 12-month period. As long as your money goes from the first IRA account to the second IRA account within 60 days, you won’t have to pay any taxes or penalties on the transfer.
If your 401(k) is from a company or companies for whom you no longer work, then you can roll over those funds into a Traditional IRA. Once your 401(k) funds have been deposited in an IRA, they can be utilized to buy Gold or Silver.
First and foremost, gold is a finite and tangible resource with intrinsic value. Gold is nature’s hard asset. Gold can’t be printed at will like money and isn’t subject to the kinds of dilutions and devaluations of currencies and other paper assets. Unlike stocks, gold’s value will never be subject to splits or mergers. Neither is gold at the mercy of governments or financial institutions.
In the event that your organization 401(k) does doesn’t allow for an in-service distribution alternative, you can still contact your organization’s Human Resources Department and request for precious metals to be incorporated into the organization’s 401(k) arrangement.
While some advisors may recommend precious metal Exchange Traded Funds (ETFs) or mining stocks, which offer a limited way of taking advantage of the growth in the gold market, they can’t recommend investing in gold itself.
Why rollover your 401k into Gold
Gold and silver tends to rise during unsettling events such as wars, terrorism, inflation, deflations, downturns in the stock market and the U.S. dollar. Traditionally, these kinds of circumstances often have investors fleeing the stocks for other more secure areas of the market. Gold can often yield large profits in these circumstances. This is why experts consider gold a safe haven and hedge against financial disaster.
Depending on the prevailing fundamentals, you may be better to begin with an investment in gold, moving into silver later when conditions shift. You may even decide to balance your portfolio with a combination of the two.
However, very few institutions are set up to handle the precious metals component of retirement plans. Since financial advisors are only licensed to recommend publicly traded securities, they, as a result, haven’t received extensive training on them.