It’s easy to roll over a 401k to gold or silver, as long as the 401k in question meets specific eligibility requirements. In most cases, for example, the 401k needs to be inactive. This means that the investor has separated from the company sponsoring the 401k, and is no longer contributing to the 401k. Two exceptions to this general rule are the following:
- The company sponsoring the 401k allows employees to make “in-service” 401k rollovers, meaning current employees can roll over their respective 401k plans to other retirement account providers.
- The owner of the 401k is also the owner of the company that sponsors the plan (this would allow the company’s owner to liquidate the 401k entirely).
In recent years, a growing number of investors have converted their respective 401k plans to physical gold and silver to combat inflation and fiscal irresponsibility in Washington. These same investors believe that rising government debt levels and interest rates that are near historic lows could hurt retirement savings that are tied up in traditional 401k investments, like stocks and bonds.
If your 401k is eligible for a rollover to gold and silver, and you think owning some gold or silver might be a good long-term investment strategy, take the following 3 steps to make the conversion from paper-based investments to hard assets:
- Fill out the 401k rollover forms sent to you by your 401k rollover provider, as well as any investment direction forms required by your 401k administrator.
- Wait for the funds to be placed in your new Precious Metal IRA account. Make sure you choose a retirement account company that supports physical gold and silver investments. If possible, have the funds sent directly to your Precious Metal IRA custodian instead of having a check or wire sent to you; this way, you can avoid a lot of paperwork when tax time comes.
- Tell your gold or silver dealer which items you’d like to buy with your 401k’s savings. Your bars and coins will be stored in a depository for you until you ask for a liquidation. In some cases, you also have the option of requesting physical delivery of your precious metals.
Also Read: How Long Should My 401k Rollover Take?
If the idea of rolling over a 401k to gold and silver that you can hold in your hands appeals to you, don’t hesitate to make the move and stay a solid step ahead of inflation. After all, the Federal Reserve prime lending rate is 0.25% right now, and the last time the United States experienced a long-term rising interest rate cycle (something many economists expect to begin this year), gold and silver investments increased in value by 1,500% and 2,300% respectively. For free help rolling over a 401k, 403b, TSP or IRA, call (800) 767-1423 or visit 401k Rollover today and learn how to fully flex your financial muscle with a 401k rollover.