The economy is pretty volatile. Regardless of where you will head to, the economic platform there will remain susceptible to unwanted disruptions.
Because of this, people are already searching for a myriad of investment tools and thus we thought it would help to put together this 401K Gold IRA rollover guide for you.
After all, a traditional asset class doesn’t act as a hedge against inflation.
One of the best options that you have for this matter is a gold IRA.
Instead of just settling for bonds, cash, or stock, this particular IRA will enable you to have specific access to precious metals like gold and silver.
If your portfolio can present these commodities, your retirement plan will be free from any financial jeopardy.
Of course, there is a myriad of ways how you can have precious metals in your account. The most prominent one is the 401(K) Gold IRA rollover.
We are somehow sure that you have already heard this term before. But of course, your knowledge might still be inadequate.
In here, we will discuss more of this matter. In this way, interested investors will be able to acquire their very first IRA from their 401(K) accounts.
Don’t worry. We have simplified everything here so that even the simplest layman in the street can understand them.
Let’s get started.
401K Gold IRA Rollover Guide
What Is A Gold IRA?
Before we tackle about rollovers, it is quite prim and proper that we elaborate what a Gold IRA is.
Specifically, a gold IRA still falls in the realm of individual retirement account. Once you have this particular IRA, you will have an opportunity to hold hard assets in your portfolio.
Specifically, we are talking about gold here (or other precious metals that are approved to be used in an IRA).
Technically, one should know that both the Roth and traditional IRAs don’t allow their owners to have these physical assets. They are only suited for stock, bonds, and cash.
Fortunately, the Taxpayer Relief Act of 1997 has made these IRAs versatile. In that said act, the inclusion of specific precious metals was allowed in a variety of retirement accounts.
In the industry, accounts that have precious metals are often labelled as “self-directed.” But then again, one should be warned that not all precious metals are suited for an investment retirement account.
Even rare and premium gold coins are not IRA-approved. Therefore, it is necessary that you only get bullion products that are certified of IRA purposes such as the American Eagle coins.
So, What Is A 401(K) Anyway?
Everybody is seemingly talking about 401(K) and the things that it does to a particular investment. Just like what we have mentioned, this 401(K) can be used for a Gold IRA rollover.
Having an account like this would give you a wide opportunity to get the precious metals that you want.
The 401(K) is a type of retirement plan. Therefore, it is something that you can be considered as a long-term investment. In any given cases, this retirement plan has tax deference, which means that it is free from any tax liability.
Furthermore, it is sponsored by employers to their employees to work as a savings plan. It gives ordinary workers a chance to invest and save a parcel of their paycheck before the removal of taxes.
The only time where tax kicks in are when the money (or any included asset) has been withdrawn. Of course, this happens when the retirement plan matures.
The importance of 401(K) lies in its versatility. Originally, the plan is designed for bonds, stocks, and mutual funds investment.
These traditional assets have been crucial for various individuals due to their capability to provide economic and financial leverage.
But because they are quite prone to be negatively affected by inflation and other economic crashes, their stability has been questioned from time to time.
Fortunately, 401(K) retirement plans have been revolutionized, thanks to the inclusion of IRA-approved precious metals.
This doesn’t mean that you will have to get rid of your traditional assets. Instead, these precious metals will only serve as a hedge.
Therefore, we are aiming for full diversification here to ensure that all your existing wealth will never be jeopardized.
Introduction to Gold IRA Rollover
Basically, the idea of rollover is quite simple. Once you have acquired your retirement plan–either 403(b) or 401(k)–you have the freedom to transfer your savings to another IRA.
Some of the conditions where this work is when you are going to leave your current employment to transfer to another job. Another is when a particular type of IRA has better proposals than your existing one. There, you can do a rollover.
How Do Rollovers work?
There is a variety of ways where a rollover can be completed successfully.
Here are they:
- Direct Rollover – Just as its name suggests, a direct rollover is an immediate request to the administrator of your retirement plan. Specifically, you will ask them to issue a check or money to the IRA plan that you want to invest. This method is the most cost-efficient because it doesn’t include taxes.
- Trustee to Trustee – This particular rollover will require the trustee of your existing IRA to facilitate the process of the rollover to the third-party IRA trustee. Like the first one, this approach doesn’t have taxes involve.
401k Gold IRA Rollover Guide
This time, we will give you the fundamentals of 401k gold IRA rollover. You see, the process of a gold IRA rollover is quite different from the ones that we have mentioned.
It is pretty important that you know this first before you start investing right away.
Take into account that gold IRAs can either be Roth IRA or traditional. Therefore, the first step of the rollover is for an investor to decide if they want to get physical gold or to invest in company stocks or mutual funds that have gold In them.
But as a caveat, let us tell you that if you decide to invest in gold mutual funds or exchange-traded funds, you will not be the direct owner of the gold. You are just holding a paper claim that can be dubious at some point.
Here are the specific things that you need to learn about these rollovers:
- When buying physical gold, make sure that they are bullion coins and bars that have met the standard of IRS and the professional bullion market. You have to secure their purity and quality.
- The gold or the precious metal should be stored by a verified custodian. Most of the time, gold IRA dealers like Regal Assets have IRS-approved vaults. Home storage systems are not that welcomed.
- Always remember that a gold IRA rollover is more expensive than other traditional rollovers. There’s a need for you to create a self-directed IRA from an IRA dealer so that you can invest in a variety of IRA-approved commodities. The dealer should also act as the custodian of your self-directed IRA. At this point, it is already essential that you have a reputable gold IRA company to process your needs.
Regal Assets For Your Gold IRA Rollover Needs
In this 401k Gold IRA rollover guide, we have mentioned the importance of having a trustworthy company to make the rollover process easier for you.
To ease your burden, we will present one of the most established IRA dealers in the industry today: the Regal Assets.
Regal Assets have been a global leader when it comes to precious metals and IRAs. They specialize in providing IRA-approved commodities to serve those who want to have a rollover of their existing IRAs.
Their procedures are very reliable and smooth. All the transactions are kept anonymous for the benefits of their clients.
Furthermore, they have accredited vaults for storage and they use segregated storage as a standard feature with no extra cost.
Regal Assets prides in helping customers achieve their investment goals and tend to what they are looking for versus pushing you into investments you don’t want or need.
They do not have any hard marketing selling tactics where they call you all the time like other firms would, instead they focus on customers’ needs and just offers information on what you have requested.
They have indeed a high trust rating on various rating sites from real clients and have a long standing of being the #1 Gold IRA company.
If you have any questions regarding our 401K Gold IRA Rollover Guide or anything else, please feel free to leave us a comment below and we will get back to you as soon as we can.