401k To Gold IRA Rollover – A Complete Guide
People generally consider rolling over their 401k plan into a Roth or traditional IRA. This is generally done when you have left an employer and want to keep all your retirement savings in one place. However, it is also a good idea to diversify these savings with assets not closely associated with the market. Executing a 401k to gold IRA rollover is something you should consider in this case.
In this guide, let us explore the benefits and drawbacks of 401k to gold IRA rollover and understand how you can effectively rollover your 401k to gold.
What is 401k Gold IRA? It’s Advantages & Disadvantages
A 401k gold Individual Retirement Account is a type of retirement account that lets investors buy and hold precious metals by moving funds from a 401k. With a rollover IRA, investors can use their retirement savings to benefit from a wider range of investment options than available with 401k.
A 401k gold IRA is generally created during retirement or job changes as it allows moving the current 401k account balance into an IRA account that offers a bigger array of investments and better performance. You can move funds from multiple retirement accounts into a self-directed IRA to make it easy to manage retirement savings.
Advantages of Moving 401k to Gold IRA
The first reason one would decide to roll over a 401k to a gold IRA is to have better control. Here are some of the benefits associated with IRAs.
- Making investment decisions– 401k plans may not offer you so many investment options as IRAs. You can choose to invest in stocks, bonds, options, real estate, and precious metals.
- Fund access– You are generally not expected to withdraw funds from the retirement account before you should. However, IRAs are better at this than any other job plan.
- Ability to choose trustee– When you move the 401k to IRA, you have the freedom to pick the investment platform. You can look for a company with good customer service and guidance in the process.
- Roth IRA facility– You may consider converting your retirement savings into gold as Roth IRA as they save you from tax during distribution.
Disadvantages of 401k to Gold IRA Rollover
While there are several benefits to rolling over 401k to gold IRA, it has some disadvantages as well.
- No exemption of separation from service – Though it is generally not advisable to withdraw from a retirement account before the maturity age, it is easy to do so with a 401k. The reason is they waive the 10% penalty for early withdrawals at ages like 55 because of the separation from service exemption. IRAs have no such exemption.
- More law protections – As 401k is a plan under ERISA, there are so many legal protections, keeping the funds in these accounts free of threats in bankruptcy, civil cases, and creditor demands. While IRAs have some protections, several state and federal laws say creditors can’t go after these funds.
- Combining with a new plan – It is a common practice to merge an old job plan with a new one but it does not work with IRA.
Brief Overviews of Top Gold IRA Companies
Setting up a gold IRA account is not so simple as a traditional IRA account, which is why people rely on gold IRA companies that facilitate this process for them. These companies can help convert paper assets into gold through gold IRA rollover. However, not all of these are created equal. Let us look at some of the best gold IRA companies in the industry you can trust for your retirement savings.
Augusta Precious Metals
Augusta Precious Metals is a leader in providing gold and silver for IRA accounts and most trusted Gold IRA company. The company has earned top ratings from multiple consumer review watchdogs. Augusta precious metals offer free webinar for investor who have saved over $100,000. The webinar provide great information and was not trying to sell products but one-on-one educate clients. This also opportunity to ask questions and learn more.
The gold IRA has become a useful tool for many Americans, to help them hedge against inflation and other economic stresses. Setting up a silver or gold IRA doesn’t have to be complicated. Augusta is committed to making the process easy, quick and transparent for every customer. Highly recommend Augusta to anyone looking to allocated capital in precious metals.
One of the top choices for gold IRA companies of the time, Goldco is a privately held firm that intends to safeguard retirement savings by moving assets from traditional IRA and 401k accounts to gold or silver-backed self-directed IRA. It has a team of friendly experts who guide you throughout the rollover process at every step to simplify it.
Apart from asset and wealth protection, Goldco helps investors buy gold coins and bars and offers a solid buyback plan. It also has extensive education resource material on the website including videos, blogs, and books. Fees vary on the basis of the investment amount and the custodian selected.
Goldco aims to make it easy to leverage the benefits of owning precious metals as a part of your retirement savings strategy. The Gold IRA kit is designed to protect and secure retirement savings by providing detailed guidance through audio, video, and text. The free kit helps you learn how precious metals give you full control of your investment portfolio and how you can diversify your savings for retirement with investments in gold.
The Goldco Gold IRA Kit also provides detailed guidance on how you can invest in gold without incurring taxes and penalties. It explains how one can start a gold IRA or buy gold in simple steps. In this guide, you not only learn about the benefits of investing in precious metals but also find various gold bars and coins you can hold in your account.
Featuring a competitive price structure and top ratings from customers, Regal Assets stands as a leading gold IRA company with up to 95% of its business attributed to IRA rollovers. It offers hard assets in the form of silver, gold, platinum and even lets you invest in crypto for retirement.
Its fee structure is straightforward and transparent. It charges a flat service charge and storage fees annually. The fee includes the charge for segregated storage which is lower compared to competitors. Regal Assets also has outstanding customer support. You not only get access to a wide range of educational resources but also benefit from specialist guidance throughout the process.
With an affordable price structure, low minimum investment requirement, amazing customer support, and comprehensive educational material, Advantage Gold is one of the best gold IRA companies for beginners. Though it appeals to every type of gold IRA investor, it is particularly suitable for first-time buyers as they offer extensive resources that help newbies get started with precious metals.
Advantage Gold offers the lowest minimums and fees in the industry and also has a buy-back program whereby they repurchase at the current market rate which is often higher than that of competitors. The company works with some of the most reputed providers for customer storage requirements.
Investing in gold is a great way to diversify your investment portfolio across asset classes. A 401k to gold IRA rollover proves to be a good option for those who want to transfer their retirement funds to something that doesn’t follow the stock market or economy closely.