Gold IRA Rollover: Step by Step Guide (2022 Update)

Nowadays you can encounter a lot of things like inflation, market volatility, even political issues that can influence your investment’s value. Which is why it’s very important to ensure that you convert some of your portfolio to other assets which are not influenced by USD value. These are precious metals like gold or silver, and with help from the Gold IRA Rollover you can do that in no time. Being able to have a diverse range of investments always helps, and this approach helps you do that.

What is the Gold IRA Rollover?

At its core, the concept behind the Gold IRA Rollover is very simple. What you’re doing is you’re doing a 401k to Gold rollover which converts some of the retirement account into either gold bullion bars or gold coins. This is great because you get to have a hedge against any type of political or economic issues that can arise. As you will see from the 401k to gold IRA rollover guide, the process is seamless, however it can take up to 60 days until the funds are transferred to the new IRA.

What are the Gold IRA Rollover benefits?

There are many reasons why you want to do a Gold IRA Rollover. For most people, the main one is that you get to protect yourself from inflation. During harsh economic times, inflation can bring in a lot of problems. If you keep your funds in USD, you can end up with significant losses during those times. Which is why the Gold IRA Rollover is a very good option to keep in mind.

The same thing can be said about currency devaluations. It helps quite a lot, and the best part is that you will not have to worry about ay issues. Then there’s also the fact that investments should always be diverse. You shouldn’t keep all your eggs in a single basket, and that’s exactly why it makes a lot of sense to do the 401k to gold rollover in the first place.

Another benefit that comes from this is the fact that you can protect yourself against government seizure or any similar problems. And yes, you can add to that the fact that traditional IRAs and the Gold IRA Rollover have the same tax benefits, which is incredibly important to keep in mind here. As you can see, the rollover is safe, convenient and it comes with a large variety of advantages that you want to pursue. Which is why we recommend giving it a try and learning how to perform it properly.

Can you transfer a 401k sponsored by a former employer?

Yes, if you want to roll over funds from your 401k to the gold IRA, that’s actually quite easy to do. You just have to select a new Gold IRA custodian and then you must have them initiate the 401k to gold rollover and you will be good to go. The problem appears when you want to transfer a 401k to gold if it’s sponsored by the current employer. In this case, you want to check the current 401k policy.

There are times in which the employer sponsored 401ks will not allow gold investments, if you are still employed. That’s why it’s a very good idea to ensure you always know the latest rules and regulations, as that’s will help you narrow down everything and ensure that it all works exactly the way you want.

What Gold IRA Rollover strategy should you use?

The truth is that you can’t find a single Gold IRA Rollover strategy that fits everyone. In most cases you must assess the situation and ensure that you find the ideal option that works in your case. With that being said, for a lot of people the best option is to invest up to 15-20% in precious metals. Some people might think this is a high percentage. There will always be some sort of risk, so you want to address it as much as possible here.

Market instability is felt quite a bit if your investment is just in fiat currency. USD and any other currency can be very volatile, especially if there are economic problems. That’s why more often than not you want to be certain that you’re splitting your investments wisely to avoid any possible problems.

If you want to mitigate risks and not worry too much, you can go with the safer 5-10% allocation. Many consider this to be safer, because you can diversify and not worry about gold prices too much. However, investing in gold is usually known to provide a very good return on investment. And that’s exactly why this is a very good option to take into consideration.

Should you choose the Gold IRA Rollover to be in coins or gold bars?

That’s up to you, because you can find great gold bars or coins as well. It’s definitely a very good idea to avoid any rush and pick the desired type of gold investment you want. The great thing about the Gold IRA Rollover is that you can have tax advantages, so there’s no real need to worry about any problems that might arise. With that in mind, rare coins that are classified as collectibles are disavowed from the IRA.

It’s the reason why some people choose to go with gold bars, because those are never seen as collectibles. Coins can be tricky, but even there you just have a specific set of guidelines that you must follow. There are 3 main exceptions accepted by the Gold IRA Rollover. That means you can invest in coins described by the 31 USB Section 5112, coins that were minted and also issued under the laws of a sovereign state (even outside the US), but also coins as well as bullions that are in the possession of a non bank trustee or a bank.

In case you invest in coins that are not approved, that can lead to fines or penalties. That’s the reason why you are much better off going with the with gold bullions. It all comes down to personal preference, but in general bullions are better off just because you get a much better ROI.

401 to gold IRA rollover guide

The Gold IRA Rollover process is actually not very complicated. You do need to go through over a few steps, but for the most part it will help quite a bit, and it will make the process easier and more convenient. Here are the steps that you need to follow:

Find the right Gold IRA company

If you want to do the 401k to gold rollover, then you must find a company that can provide you with the gold that you need. Gold IRA companies are not that hard to find, but you do want to ensure that you find the right company to suit your needs. Once you do that, results will be more than ok.

Find a self-directed custodian

Now that you found the gold IRA company, you want to find a person that serves as the custodian for the gold IRA. You can’t store gold on an IRA on your own, and that’s why you want to be certain that you find a custodian. Generally, the account custodian is a business. They keep track of all paperwork, services and transactions, everything related to this.

Open the Gold IRA account

After you figure out who manages the gold IRA, you will need to open the account so the provider can start working on it. You will have to select the commodities and once you do that, the provider of precious metals will work with the admin so he can broker this transaction. The precious metals are transferred to a safe location which specializes in holding these assets. The custodian will also guarantee that your account works according to the IRS laws, and they will send the gold acquisition paperwork to the IRS. You don’t have a minimum investment for the gold IRA, you might find companies that require an investment ranging from $5000 to $20000 or more.

Executing the rollover

Now you will need to transfer funds from the current retirement account to the Gold IRA Rollover. You can do that either directly or indirectly. If you want to do it directly, you have your money sent from the old IRA trustee to the IRA custodian. The gold IRA provider will help you prepare the entire process.

An indirect rollover is a bit more challenging because the prior retirement account assets are delivered to you, and you are expected to send those funds to the gold IRA. You can’t keep them as you own payout. That means you have to deal with extra paperwork. Which is why most people find the direct rollover a much better solution.

Buying gold

Once the Gold IRA Rollover is fulfilled, the gold IRA provider can help you identify the right precious metals and purchase them, then they are delivered to the facility. If you get bars, they need to be 99.5% pure, aside from the American Gold Eagle coin that has only 91.67% purity due to its structure. The thing to note here is that you choose what type of gold you invest in. That’s why working closely with the gold IRA provider is the better option, since it helps save a lot of time and effort, without having to deal with any kind of challenges.

Why should you go for the Gold IRA Rollover?

The main benefit of the rollover is the fact that it allows you to diversify your asset investments and it’s also quite easy to do. The stock market is great, but stocks always tend to go up or down. You can’t really pinpoint the value of a stock, and that’s exactly why you have to take your time here. The market can easily be unstable, so the last thing you want is to lose on your investment.

With the Gold IRA Rollover you have more stability. As we mentioned earlier, a gold rollover is not only very efficient, but it also helps you future-proof your investment. As you know, gold is always increasing in value, sometimes a little bit, other times rather significantly. Which is why having a diverse set of assets and investments is preferred, and gold is something that can indeed bring you the assurance you want. Of course, you don’t want to invest solely in gold, but having gold as a part of your investment is very much worth the effort.

Is the Gold IRA Rollover process instant?

No, it will take up to 60 days for the 401k to gold rollover to take place properly. One thing to keep in mind here is the fact that it won’t surpass that date. In fact, if you wait more than that, you might be subject to taxes.

And yes, you can rollover a variety of retirement accounts to a precious metal IRA if you want. There might be a few restrictions here and there based on the retirement account type, but for the most part this is a safe and efficient system that you do not want to miss. Also, the contribution limit for a 401k is $20500, but if you are over 50, you can add $6500 more to that amount if you want.

Is the Gold IRA Rollover a good idea?

Absolutely, you always want to diversify your investments, so the 401k to gold rollover is actually a very good idea. You get to invest in assets that are known to increase in value in the long run. On top of that, your gold is stored in a secure location, so you can avoid any possible issues or safety concerns. We hope that this 401k to gold IRA rollover guide was helpful and that it made everything clear. Don’t hesitate and contact us right away if you have any questions, we will gladly assist with any Gold IRA Rollover questions or inquiries!


  • Isaac

    Isaac is a lawyer who specializes in the areas of business, entrepreneurship, and affiliate marketing. He is passionate about passive income and hopes to inspire others to create other streams of wealth so that they can live the life they've imagined.