Can I Use My 401k to Buy Gold?
Physical gold investments can be an ideal way to diversify and protect against inflation risks, market fluctuations and economic uncertainties in retirement accounts. Unfortunately, most employer-sponsored 401(k) plans only offer limited investment options that don’t include gold as one of them.
To purchase physical precious metals and IRS-approved coins, a self-directed IRA is your solution. Discover more about rollover options such as 401(k) to Gold IRA conversions with this comprehensive guide.
401(k) to Gold IRA Rollover
Investment in precious metals can help diversify and secure your retirement portfolio and protect its value during economic crises and market declines. Gold offers various advantages over its counterparts, such as portfolio protection, inflation hedging and potential growth potential. Furthermore, gold’s unique ability to retain its value helps it remain an invaluable safeguard against market fluctuations that might threaten its worth over time.
Rollover of your 401(k) into a Gold IRA should be straightforward if you follow all the necessary steps. First, select a qualified precious metals dealer and custodian, submit all the paperwork necessary for both accounts, then wait for transfer completion before beginning investing in gold.
At every step, it’s essential that you work closely with your chosen precious metals company in order to successfully transfer your 401(k) into Gold IRA. This involves providing all required paperwork and working directly with your dealer to purchase and store gold safely in a storage facility. Direct transfers are preferable, as this prevents an IRS-imposed fee of 10% as well as income taxes being withheld from income generated.
Self-Directed IRAs
Self-directed IRAs provide you with the freedom to invest in nontraditional assets through specific brokerage firms, giving you greater investment options such as precious metals meeting IRS purity standards and real estate.
These accounts typically incur higher fees than traditional IRAs held with major brokers and investment advisers, including transaction costs, setup charges, annual fees and even fees per investment.
Before investing in any alternative asset in a self-directed IRA, especially cryptocurrency such as Bitcoin, it’s vitally important to conduct thorough due diligence. Fraud can be an issue with these accounts; some custodians have been accused of misrepresenting services or promising returns that don’t add up; in extreme cases this has led to Ponzi schemes that lead to investors losing retirement savings.
American Gold Eagle Coins
The American Gold Eagle Coin has quickly become one of the most sought-after investments since its debut in 1986. This series of bullion coins has proven extremely popular since their introduction.
American Eagle series coins stand out among modern gold bullion coins by being guaranteed by the U.S. government, providing investors with confidence and making them easy to add into an IRA account.
Gold Eagle coins come in four different sizes, from the one-ounce standard coin designed by Miley Busiek, down to smaller coins weighing 1/2 oz, 1/4 oz, and 1/10 oz. On its reverse is depicted a family of eagles: male and female guarding their young.
Beginning in 2021, the American Eagle series will showcase a brand new Type-2 reverse design by Jennie Norris – recently chosen as part of the Mint’s Artistic Infusion Program in 2019. Her stunning side-profile portrait of an eagle will replace the previous Family of Eagles design.
Precious Metals IRA Companies
When choosing to invest in precious metals for your retirement account, a reliable gold IRA company can guide you through every step. Many are open and honest in their approach to helping their clients meet their savings goals for retirement.
Oxford Gold Group stands out as an exceptional precious metals IRA firm with 5-star customer satisfaction reviews on Trustpilot and has maintained an A+ rating with the Better Business Bureau since 2005. Additionally, this business boasts high-profile endorsements such as Lou Dobbs and Bill O’Reilly who endorse them regularly.
Other reputable firms include American Hartford Gold, Augusta Precious Metals and Birch Gold Group. Each firm works with trusted depositories such as Brink’s Global Service or Delaware Depository to store your gold and silver IRA investments – these facilities may include Los Angeles, Salt Lake City or New York as desired – they then send pictures of your investment once it reaches storage facility.
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