Move 401k without penalty to Gold
Protecting retirement savings with Gold is particularly important today because of rising Inflation, rising interest rates, and mounting geopolitical tension.
These economic factors along with hyper-extended Stock markets are causing concerned investors to worry about preserving the Purchasing power of their hard-earning money.
As they consider their options they are asking this question:
Can I transfer my 401k to Gold
?
Unfortunately, the best answer is,
Maybe
The big caveat on moving a 401K to Gold without penalty is that the move is only possible if you are no longer working for the company that provided the 401K. Currently active 401K accounts are not eligible for a penalty-free Gold IRA rollover.
To use the funds in your active 401(k) account for a penalty-free purchase of physical Gold you would have to change employers, thereby making the currently active 401(k) eligible for a Gold IRA rollover without penalty.
401(k) loan
As an alternative to changing jobs, you may be able to take a loan against your 401k. This will depend on your employer and how they have structured the 401(k) plan.
What you do with the proceeds of a 401(k) loan is nobody's business except yours, but your employer will have guidelines about the acceptable uses for the borrowed funds. If you tell them you are going to purchase physical Precious metals with the money, they will most likely look at you as though you have three heads and then they will say, "No".
Before going down the 401(k) loan path consult with your Financial planner, Investment advisor, and tax accountant. These professionals will be able to make recommendations based on your unique circumstances and tolerance for risk.
Here are some key points to understand about 401(k) loans:
401k rollover to Precious metals
The IRS makes a distinction between a rollover and a transfer of Retirement accounts.
In an account transfer you take a distribution and receive funds from your existing Retirement account. You then deposit some or all of the money into another tax-advantaged account.
You have 60 days to complete the transfer or the IRS will treat the distribution as regular income and assess a 10% early withdrawal penalty if you are under age 59 1/2.
In a 401k rollover to Precious metals IRA the distributed funds move directly from the existing account Trustee to the Gold IRA Trustee without you acting as a middle-man.
Investors tend to use the term ‘rollover’ interchangeably for both rollovers and transfers.
The key distinction between the two events is whether or not you take personal possession of your retirement funds.
Already know that you want to protect your retirement savings and do it 100% tax & penalty free?
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But...If you would like to know more about moving an eligible 401(k) to Gold feel free to continue reading below.
401k to Silver IRA rollover
The Taxpayer Relief Act of 1997 added Silver and Gold to the list of assets that can be held in self-directed IRAs. In 1998 Platinum and Palladium were added.
Any of the four Precious metals, or a mix of the metals, can be held in a self-directed IRA. There is no difference between a “Silver IRA”, “Gold IRA”, or "Precious metals IRA".
To perform a 401k to Silver rollover you follow the simple five-step process shown below.
401k to Silver rollover
How to move 401k to Silver without penalty
Whether you have an an eligible 401(k), an IRA, or other tax-advantaged Retirement account, you will follow the same steps to convert your paper Stocks, Bonds, and Mutual funds into physical Precious metals.
It really is as simple as that. And all of the Gold IRA companies have knowledgeable specialists to help you with the process.
The IRS only allows certain forms of Silver and Gold to be held in a self-directed IRA as specified in U.S. Code 408 (Individual Retirement Accounts).
Some general guidelines on the permitted forms of metal:
The IRS requires that a third-party Custodian hold the Precious metals in a self-directed IRA.
Each investor’s metal is held in their name by the Custodian in the same manner that a Broker-Dealer holds an investor’s Stock shares or Mutual fund Investments.
All of the Gold IRA companies have established relationships with IRS-approved metals depository facilities.
After you establish a Gold IRA account you will choose one of these depositories to serve as the Custodian for your Gold IRA.
Most metal for the least amount of money
Never pay a premium for proof Coins, limited edition Coins, boxed Coins, or Coins with Certificates of Authenticity.
This recommendation is especially true for a Gold IRA where the physical Gold is stored in an IRS-approved depository.
Unless you plan to take possession of the Precious metals after you retire, you will never physically hold it in your hands so what difference does it make whether it is proof or not?
Gold is Gold whether it is a proof American Eagle Coin or a beat up Krugerrand from the scratch-and-dent bin. The same thing goes for Silver, Platinum, and Palladium.
Buy physical Gold that has the lowest premium over the price of Gold Bullion.
The objective is to obtain the maximum number of ounces possible for a given amount of money.
For example, if the premium on Gold Maple Leaf Coins is lower than the premium on Gold Eagles, buy Maple Leafs. If a 100 gram Gold bar has a lower premium than three Gold Maple Leaf Coins, get the Gold bar.
Ready to start the rollover or transfer process for your eligible 401k? CLICK HERE and grab your FREE 2022 Gold IRA Kit. Protect your retirement savings from Inflation and market risk today.
Gold IRA pros and cons
Like all Investments, Gold IRAs have their pluses and minuses.
A Gold IRA is not the ideal way to own physical Precious metals but it is the only way to purchase and hold those metals with tax-advantaged retirement savings.
Here are a few Gold IRA pros and cons to consider:
Pro | Con |
|---|---|
Investors are able to purchase physical Gold with tax-advantaged retirement savings | Gold must be newly purchased inside the IRA account. Already owned Gold cannot be moved into the IRA. |
Diversification for traditional Portfolio of stocks and bonds | Fees for buying and selling Gold |
Inflation hedge | Fees for storing Gold |
Distributions can be made in Gold or cash | Fidelity Gold IRA |
Capital gains are taxed as regular income instead of the 28% rate for Collectibles | Best Gold 401k |
Best Gold IRA
Understand that using the word “best” in an internet search has a predictable result.
This search term brings out the affiliate marketers and lead generators because they can smell money in the water.
To find the best Gold IRA companies in 2022 we first need to define our criteria for being ‘best’.
What are we looking for in a Gold IRA? What factors are most important?
Is it lowest transaction and management fees? The number of years the company has been in business?
Some investors choose the Gold IRA company offering the best incentives for opening a new account.
Because we are dealing with physical Gold that will be stored on our behalf, trust is the single most important factor for us to consider.
It is unlikely that an internet search for the ‘best’ Gold IRA will actually lead us to a company that we will feel comfortable with as conservative Investors.
Affiliate marketers are going to promote the companies that offer them the best commissions, and these companies may or may not be best for you.
As an alternative method for finding a Gold IRA, we might consider starting from the trust angle.
Which of the Investment management companies are we already familiar with? And more importantly, which of them can we trust to manage our hard-earned money?
Unless we have a compelling reason to do otherwise, it is probably best to stick with large, reputable companies for our Gold IRA accounts.
In the table below we have compiled some of the most reputable Gold IRA companies as a starting point you. All of these companies offer free information and most of them have IRA specialists available to answer your questions.
Precious metals IRA company
Fidelity
- Founded: 1946
- BBB rating: C-
- Proof Coins: No
- Minimum Investment: $1,000
Patriot Gold Group
- Founded: 1990
- BBB rating: A+
- Proof Coins: Yes
- Minimum Investment: $15,000
- Founded: 2003
- BBB rating: A+
- Proof Coins: Yes
- Minimum Investment: $10,000
- Founded: 2006
- BBB rating: A+
- Proof Coins: Yes
- Minimum Investment: $25,000
- Founded: 2010
- BBB rating: unrated
- Proof Coins: Yes
- Minimum Investment: $10,000
Noble Gold
- Founded: 2017
- BBB rating: A-
- Proof Coins: Yes
- Minimum Investment: $2,000
Gold IRA | Year founded | BBB rating | Proof Coins | Minimum Investment |
|---|---|---|---|---|
Fidelity | 1946 | C- | No | $2,500 |
Patriot Gold Group | 1990 | A+ | Yes | $15,000 |
2003 | A+ | Yes | $10,000 | |
2006 | A+ | Yes | $25,000 | |
2010 | unrated | Yes | $10,000 | |
2012 | A+ | Yes | $50,000 | |
Noble Gold | 2017 | A- | Yes | $2,000 |
Grab your FREE 2022 Gold IRA Kit which has helped thousands of Americans just like you.
Summary
Moving your eligible 401k to Gold without penalty is easy following the simple process given here.
Using tax-advantaged money to purchase physical Precious metals provides protection from Inflation, Stock market meltdowns, and the economic turmoil that could occur if current geopolitics spin out of control.
Protect your retirement savings today by moving your eligible 401k to Gold.
About Satori Traders
Satori Traders LLC is a California-registered Investment Advisor specializing in the Precious metals.
Bryan V Post is a California-registered Investment Advisor Representative and the founder of Satori Traders.
Bryan has worn numerous hats during his life: Engineer, Portfolio manager, Precious metals Investor, Technical analyst, Proprietary trader, Swing trader.
Precious metals IRA company
Fidelity
- Founded: 1946
- BBB rating: C-
- Proof Coins: No
- Minimum Investment: $1,000
Patriot Gold Group
- Founded: 1990
- BBB rating: A+
- Proof Coins: Yes
- Minimum Investment: $15,000
- Founded: 2003
- BBB rating: A+
- Proof Coins: Yes
- Minimum Investment: $10,000
- Founded: 2006
- BBB rating: A+
- Proof Coins: Yes
- Minimum Investment: $25,000
- Founded: 2010
- BBB rating: unrated
- Proof Coins: Yes
- Minimum Investment: $10,000
Noble Gold
- Founded: 2017
- BBB rating: A-
- Proof Coins: Yes
- Minimum Investment: $2,000