Gold 401k Rollover Guide – How to Execute a 401(k) to Gold IRA Rollover


Many people are interested in various retirement options, including holding gold bullion or coins and rolling them over to a specific kind of existing retirement account to incorporate that into their portfolio. Nonetheless, the process might be challenging to understand, which is what this guide is for. It offers all the basic aspects that clients must know.

What Is a Gold IRA?

An IRA is a type of retirement account that exists since the Taxpayer Relief Act of 1997. It’s a kind of long-term account that allows custodians to hold precious metals for the retiree.

A ‘gold IRA’ is the most famous term for IRAs, but this doesn’t mean that clients are only able to hold physical gold. People can also have other kinds of precious metals, even though this option is less common.

If a client has a tax-advantaged retirement account, they can hold silver, palladium, and platinum. Since the plans available for a gold IRA are usually self-directed, they allow for many more options than other alternatives.

Some people believe that opening an individual retirement account and possessing physical gold is a straightforward process, but there are specific requirements to take in mind. Clients can’t simply invest in physical precious metals – the IRS must approve of what they buy.

Compared to other options, having a gold IRA is often more convenient for numerous clients. This type of retirement account allows the person to hold physical precious metals, real estate, stocks, bonds, and other types of investments. Thus, it provides the individual with various alternatives to choose from.

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  3.  Birch Gold Group – Largest offering of precious metals to invest in 

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Gold IRAs Allow Clients to Purchase Physical Gold

Although many people don’t even know what a gold IRA is, the definition is not challenging to understand.

A gold IRA is a self-directed IRA, which works by allowing the person to open an account with a custodian. This representative is in charge of holding their gold for them.

Most investors purchase gold coins and bars since the IRS has very strict rules regarding what they’re allowed to buy. If the person wants to get some money for their physical gold, they can sell it back to the custodian at the current market price.

Gold coins, bars, and other examples of this precious metal are often a good investment option for someone who wants to take advantage of their retirement savings.

When someone buys gold bullion, its price doesn’t vary much, even if the dollar collapses. Therefore, investing in this means the person will be less prone to suffering the consequences of political instability or financial turndowns.

Why Should Clients Invest in Gold?

Gold is part of the precious metals family, and it holds intrinsic value. Many people believe that having gold, silver, and other precious metals allows clients to protect their retirement savings from the market’s volatility.

At the same time, some people believe that having gold bullion is a convenient alternative for their retirement account, especially because in the case of a natural disaster, market calamity, or geopolitical catastrophe, gold might remain a valuable investment.

Nonetheless, even a gold IRA company recommends having gold bullion as the only investment option for someone who opens an individual retirement account. Instead, they often recommend diversifying the investments the person makes with their retirement savings, even if they want to focus on buying precious metals.

Clients Can Use Gold IRAs to Buy Precious Metals

All individuals who have a self-directed IRA (a 401 k gold IRA) can buy platinum, palladium, silver, and gold. Even though they must store the precious metals in a specific place that the IRS approves of, they have a lot more options than other investors.

Gold investments are one of the most popular alternatives that people choose when they open a self-directed IRA. Silver and platinum, on the other hand, are also convenient alternatives for a self-directed IRA, although choosing them is less frequent. People usually go for gold.

Many people overlook palladium, but numerous investors are interested in it because of its use in automotive manufacturing, which makes it valuable.

Each company offers specific products and services when it comes to investing in precious metals and guiding its clients to open a self-directed IRA. Therefore, the person must examine what the professionals offer them before making important decisions.

People Must Follow the Rules

Clients are allowed to take distributions from their existing traditional IRA. Overall, there are several alternatives if a person has a traditional or Roth IRA. Nonetheless, they must follow the rules if they want to purchase precious metals.

If the person does not roll over the distribution in a matter of 60 days, the Internal Revenue Service treats the distribution as taxable income. Additionally, if the client is younger than 59.5 when taking the distribution, the IRS might also make them pay a 10 percent early withdrawal penalty.

To avoid withdrawal penalties and other issues when the person goes for precious metals retirement plans, following the rules is essential.

They must roll over their distribution within the first 60 days. Furthermore, to avoid the penalty for withdrawing early, they can use the money to pay for higher education expenses or purchase a first-time home.

The Account’s Value Can Change

When someone buys gold, they often have distorted ideas of how things can go. A very important thing to keep in mind is that a gold IRA company provides people with the ideal professionals to guide them through the process of investing in gold bullion, rolling over their Roth IRA, and so on.

People believe that investing in precious metals and going for a gold IRA rollover means that they never have to worry about their investments. Even though gold investments are less risky than investing in, for example, stocks, bonds, or cryptocurrencies, that doesn’t mean the process is without risk.

As was mentioned before, the Internal Revenue Service regulates what clients can do when they want to focus on precious metals ownership. Therefore, investing in gold bullion bars or any other precious metals is not something that people should take lightly.

Overall, gold stocks are much more stable than other kinds of investments. However, the value of a gold IRA account depends on the person’s specific investment decisions, which is why diversifying their portfolio is always the best choice.

Benefits of a Gold IRA

Opening a gold IRA and investing in precious metals is one of the best options people have for their retirement. Although other alternatives such as mutual funds or investing in cryptos might seem attractive, precious metals are often less risky.

Additionally, there are some specific benefits that investors should keep in mind before they talk to a precious metals dealer.

The Purchase Process Is Simple

If the person works with gold companies, the process of precious metal ownership for their retirement accounts is straightforward.

They can work with experts that will tell them all about a precious metals IRA, mutual funds, and owning gold stocks. Furthermore, the gold IRA custodian will be the person in charge of keeping the gold bars, so the client can be sure that their investments are always safe.

People who go for a gold IRA can finish their process in as little as two weeks. In other words, they might have their bars or coins, and their gold IRA rollover may be all set for them to retire when they want to.

On many occasions, once clients work with gold IRA companies, they have access to customer support at all times. In other words, if they have any issues or questions, they can consult with professionals.

If someone wants to buy gold, it means they understand the advantages of self-directed IRAs. Once the client wants to retire, they can use their precious metals IRA to provide money for themselves and their loved ones.

Clients Can Use Guides and Contact Experts

The best option when someone wants a gold IRA, an indirect rollover, or other specific retirement accounts to shape their financial future is to trust professionals. Qualified experts from gold IRA companies can help clients navigate through the sometimes-confusing waters of their retirement process.

In some cases, people believe that rolling over their traditional IRA to have gold IRAs is also a simple process. Although it’s not particularly challenging, getting professional help is the ideal way to guarantee the best results.

Even so, if someone wants to know more about mutual funds, a gold IRA rollover, other types of precious metals IRAs, and alternative investments, they can start reading basic guides to get to know the fundamentals of these topics.

Guides like this one, for example, allow clients to understand the essential aspects of working with gold companies, getting an indirect rollover, a silver IRA, or a gold rollover. Overall, it helps people comprehend a lot of details of gold investing.

People Can Roll Over Your Precious Metals into Their Account

Another benefit of a gold IRA rollover is that people can roll over other precious metal alternatives to their accounts.

Recently, people have started using their 401 k or IRA and rolling it over to a gold IRA account. This is possible with other types of precious metals too. Since metals are tangible assets, when someone wants to buy gold and silver, they can protect their savings from sudden market catastrophes and avoid the volatility of stocks and cryptocurrencies.

A gold rollover also allows people to diversify their investment portfolio. If the client speaks with a certified financial planner, they might quickly notice that they reduce financial risks if they enter the gold industry and examine various investment options instead of focusing on just one.

The value of gold or silver often increases in times of economical instability, so a precious metals IRA can also allow the client to guard their savings and protect them against potential losses.

How to Open a Gold IRA

The person must first open a gold IRA account. Then, they can contact a company to manage the 401 k and handle the rollover process.

People can choose between direct and indirect rollovers. The first option allows the person to directly withdraw the funds from one account before depositing them in another one. Even though an indirect rollover is also an option, they usually have more risks, and the person might be in danger of suffering from Internal Revenue Service penalties.

Generally speaking, direct 401 k rollovers are a much better option. As was mentioned before, clients can choose the alternative that suits them best, though, so if someone wants to go with the indirect ones, they can also do it.

An indirect rollover allows the person to have 60 days from the moment they receive the funds until they have to transfer them to their custodian. When the client does not complete the transaction, they might have to pay fees.

At the same time, clients must keep in mind that regardless of the alternative they choose, they must comply with the Internal Revenue Service requirements. Companies sometimes have special rules for self-directed IRAs. Thus, the person must also abide by those guidelines if they want to enjoy the benefits of having precious metals.

Once the person meets the requirements, the company will send them a check with the funds. The client might get the check, and if not, the custodian gets it. After that, the individual can say they’ve successfully completed a 401 k rollover.

How to Manage a 401k Gold IRA Rollover

Managing a gold IRA rollover might not be as straightforward as some people think, especially if the client doesn’t know anything about retirement accounts.

There are several aspects that clients must understand if they’re rolling over a 401 k and entering the gold industry. Here are some of the most important features of the experience:

People Must Understand the Process

Firstly, the person should find a trustee or custodian for their account. The client must provide them with information about their former 401 k plan, for example, the plan’s sponsor, their contact information, and their number.

Clients must also have certain documents, for example, a completed form for a ‘rollover request,’ and a recent account statement. Once the person is ready with all the previously mentioned requirements, they can start their 401 k rollover. The job of the custodian or trustee is to help the person transfer the funds from their 401 k account to their new gold IRA one.

On most occasions, clients can only transfer a 401 k or a 403 bs to a gold retirement account. Therefore, if the person has a different type of account for their retirement, they might be able to roll it over to a traditional or Roth IRA.

Nonetheless, this means that they might not be eligible to purchase and store gold. Consequently, the best way to handle this is to ask a professional trustee or custodian before making any life-changing decisions.

It’s Better to Know What to Purchase Beforehand

The best way to invest is to have a plan. If someone wants to guarantee that their retirement is as peaceful as they wish, they must have a strategy for it.

In other words, choosing randomly when it comes to gold investing is immensely risky. Instead, the person should know what they’re buying, assess their alternatives, and pick the best one.

Once someone decides to roll over their 401 k account, they must examine several aspects. On the one hand, they have to know what type of gold or other precious metal they’re investing in. There are a variety of options if someone wants to buy gold. The client can choose anything from bullion to coins, and their value can change depending on many different factors.

On the other hand, the person must also consider their current assets. If they are rolling over a 401 k, they have to evaluate how this process might affect their financial stability.

The best way to assess risks is to consult with a professional financial advisor. These experts can help people see the risks and potential benefits of what they’re doing, and they can also help them plan what they can do in the future.

Generally speaking, the most common alternative for investors who want to roll over their 401 k is to buy silver, platinum, palladium, or gold coins or bars. Both bullion and coins are made of different metals, but they have certain disparities. Coins, for example, usually have markings that belong to the country where they’re from.

People can buy coins or bullion, and they can hold them in their IRA accounts. Furthermore, they get a certificate that proves their ownership, although a third party is in charge of storing the precious metals.

Once someone has their IRA account, their funds can be diverse. They might, for instance, have stocks and bonds aside from gold, silver, platinum, or palladium.

Clients Must Find a Reputable Company They Can Trust

When someone starts planning their retirement, they often want to focus on having enough money so they can enjoy the immense benefits of being work-free.

After so many years of work, the least that someone wants is to feel at peace. However, this might be challenging if they have to handle their 401 k rollover by themselves.

Learning the basics of a 401 k rollover is possible if the person starts reading articles. Anyone can understand what a 401 k is and how having precious metals can diversify their investment portfolio and allow them to live their retirement the way they want.

Nonetheless, professionals are the only trained experts who can guide people through the process. There are numerous documents that the person has to sign, and they must also abide by various rules if they want to avoid penalties. Consequently, the best option is to always hire an expert to help with the process.

Companies often offer fantastic customer service, competitive rates, and most importantly, safe places to store precious metals. Thus, the client must choose a company that adapts to their needs. With the right professional, they can feel safe while they’re rolling over their 401 k and paving the road for the future they want.

How to Transfer a 401k

People have to evaluate all the options they have when they’re near retirement age. A gold IRA rollover might be possible in some cases, which means that they must assess their alternatives from early on.

Fortunately, clients can transfer their 401 k into a gold IRA, and it doesn’t cost them any fees. However, the process is often challenging, so having expert help is the best way to go. First of all, the person should understand the difference between a 401 k rollover and a transfer.

A 401 k rollover happens when the client takes the funds from one account and puts them into another. Thus, they might get their 401 k and deposit the money into an IRA account.

Alternatively, transfers occur when a custodian deposits the money where it needs to be. Consequently, clients never really see it. Transferring is not expensive, but the person must have a trustee or custodian to be able to do it. Moreover, they should get expert help to make sure the process is straightforward.

What Paperwork Should Clients Handle?

Clients must handle a lot of paperwork when they want to roll over their 401 k. First off, they have to fill out a gold IRA application form, a 401 k rollover form, and a form for direct deposits.

Forms are available online and via paper, so the decision is up to the client. Moreover, there might be fees that they need to pay, and trusting a professional from a specialized company is the top way to understand all this.

To roll over a 401 k into a gold IRA account, the average cost is 50 USD. At the same time, the person must transfer the money in the specific time they get if they want to avoid penalties. Fees might also vary depending on the person administering the account. Thus, the client must choose a company they can trust.

Is it Possible to Roll Over Other Types of Retirement Savings Accounts into a 401k Gold IRA?

Unfortunately, there is no definitive answer to this question. What clients must keep in mind is that it depends on the type of account they have.

If a client wants to know whether or not they can roll over their retirement account into a gold IRA, then the best alternative they have is to consult with a professional in the field. People can roll over 401 k accounts, and in many cases, the same rules apply to 403 bs ones. Even so, the person must consult with an expert to get all the information they need.

How Can Someone Roll Over Other Types of Retirement Accounts into a Gold IRA?

Once the client finds out whether or not they can roll over their account into a gold IRA, they must know what to do next. If they haven’t contacted professional help by this point, they should do it now because they have to manage a lot of paperwork and documents that might be confusing to fill out.

People must fill out a form and mail it to the custodian or trustee of their gold IRA. Therefore, working with an expert is vital because they must follow all the rules and regulations. Otherwise, they might encounter some problems or pay penalty fees.

Rules for Rolling Over Metals into an IRA Account

Clients who want to do a gold IRA rollover into other types of accounts must follow the guidelines of the account type they have. In other words, if they’re doing gold IRA rollovers, they have to consult with the expert who’s helping them and find out which type of metal they want to store.

Furthermore, in the case of another type of existing IRA, rules are also different. If the person wants to roll over into a Roth IRA, they can do so with any type of metal. Nonetheless, traditional IRAs are not as flexible. People who want to roll over to these accounts can only roll over gold and silver.

Is a 401k Gold IRA Rollover Convenient?

Wondering whether or not a gold IRA rollover is convenient is one of the most frequently asked questions in the field. Overall, clients are often scared of the process, which is completely normal.

A gold IRA rollover is often convenient because of various reasons. However, one of the most attractive ones is that the client’s gold fund will usually move in the opposite direction of the stock market.

As a consequence, if their stocks investments are not performing well, their gold ones might be on the rise and vice versa. On many occasions, investors make a gold IRA rollover to hedge them against their other investment choices. Thus, it’s very uncommon for a client to have a portfolio that only contains gold. Instead, people must diversify their decisions.

Doing a gold IRA rollover is a convenient alternative if the client wants to diversify their investment portfolio. Moreover, it’s a fantastic choice if they want an option that’s not as volatile as the stock market or paper currency.

Investors often do a gold IRA rollover once they contrast metals investment with the volatility of the stock market. Even so, clients should remember that all investment decisions are risky. The price of gold and other metals is still subject to changes, and there’s also the possibility of being stolen. However, custodians often insure the person’s belongings to prevent the consequences of that.

The Process Can Be Daunting

When someone wants to buy physical gold, they might be scared due to the daunting process they must go through, especially if they’re beginner investors. However, it’s a convenient way to diversify the portfolio and work on a retirement plan that involves various asset classes.

A 401 k rollover is a fantastic alternative for people looking for something that doesn’t follow the stock market so closely. Thus, incorporating the 401 k into the person’s portfolio might be the alternative they need to organize the retirement plan they want.


Although rolling over a 401 k into a gold IRA might sound like be a daunting process to go through, the experts at GoldCo will walk you through the fundamentals of why this has to be a financial move to be strongly considered.  With inflation numbers in our face, there is no better time to think about diversification of assets.  


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