Anytime you leave an employer and you have funds in a retirement plan, it is important to understand the 401k rollover options that are available to you. One of the most common options for moving funds out of a former employer’s retirement plan is to roll them over to a personal IRA (Individual Retirement Account) account.
While some financial advisors may steer you towards more “traditional” IRA assets such as stocks and mutual funds, over the past few years, there are other assets that have performed far better. These include gold and precious metals – and it is now possible to rollover 401k funds into a gold IRA account.
How to Rollover a 401k Into Gold IRA
When rolling over a 401k into a gold IRA, you will need to first locate a company that provides gold and precious metals IRA accounts. The best place to rollover 401k funds will be a company that has a good reputation in the precious metals industry, a good selection of gold and other metals, and low (or no) fees on precious metals storage for gold IRA account holders.
The best gold IRA companies will have customer service reps that will walk you through the 401k to gold IRA rollover process, as well as answer any questions that you may have about which metals would be best for your specific investment goals.
What is a Gold 401k Plan?
Just as there are gold and precious metals individual IRA accounts, there are also gold and silver 401k retirement plans available for companies. With these plan options, employees and business owners can roll over 401k funds from their previous retirement plan into the new plan that allows investment in precious metals.
With this type of 401k, gold and other metals may be purchased by the investor, while at the same time reaping the additional benefits of tax deferred growth on assets inside of the account.
Other Options for Converting Assets in Your 401k to Gold
For investors who plan to remain with their current employer over the long term, and who do not have access to a gold 401k plan, there is another potential option for freeing up 401k funds for rollover to a gold IRA account through a process called an in-service distribution.
Through this process, an employee is able to roll funds over from his or her employer-sponsored retirement plan, with no tax consequences, yet without having to leave employment with the company. Not all employers allow in-services distributions, however, so it is important to check with one’s human resources department prior to moving forward with this particular process.