401k to Gold IRA Rollover Guide: 2024 Update

Written By Colin Kuehn  |  Gold 

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If you have a 401k with your current employer, you might be considering rolling it over to a gold IRA. However, before you can begin investing in gold, you must first convert your 401k to a self-directed gold IRA. You'll have more investment options with a self-directed gold IRA.

a 401k chart

What is a 401k?

A 401(k) is a savings account in which an employee can contribute pre-tax money. These contributions are not considered income, and so they can put an individual in a lower tax bracket. The funds grow tax-deferred and earn compound interest. Many employers match employee contributions.

401(k) plans are defined-contribution plans, and the balance in the account is determined by a participant's contributions and the performance of the investments. While employers are not required to contribute to a 401(k) plan, many do so to match employee contributions and provide profit-sharing benefits. There are two basic types of 401(k) plans, traditional and Roth.

401(k) plans are not available to all employees and are only available through an employer. If your employer does not offer a 401(k) plan, you may want to consider opening an IRA instead. IRAs have similar tax benefits, but can offer more flexibility when it comes to investments and investment options.

an graph showing the price of gold going up

What is a Gold IRA?

A gold IRA is a good way to diversify your retirement investment portfolio and invest tax-free. However, it is important to understand that gold is not a very liquid asset. As such, it is best used in an IRA for long-term holdings. Most IRA assets are held for decades, and gold is no exception. Additionally, gold IRAs are self-directed, allowing the investor greater control over their money.

Before you choose a gold IRA company, make sure to research the company's reputation. You can find this information through online reviews and business rating sites. Check sites such as Facebook, Google Business, and the Business Consumer Alliance. You can also check accreditation and Better Business Bureau accreditations to make sure that the company is trustworthy.

There are two types of gold IRAs. A traditional gold IRA is funded with pre-tax dollars, so withdrawals will be taxed only when they are withdrawn during retirement. A Roth gold IRA, on the other hand, is funded with after-tax money. It offers no tax advantage immediately, but can be beneficial for retirees. A gold IRA is a great way to diversify your retirement investment portfolio and hedge against inflation.

a guy points at himself with his thumbs

What is a Self-Directed Gold IRA?

If you're planning to invest in gold, a self-directed gold IRA is a great option. This type of investment account gives you complete control over your investments, but you need to choose carefully and do your research. There are a number of resources available that will help you understand the different aspects of this type of account. It is also important to choose a custodian that specializes in precious metals.

The amount of money that you can contribute to your self-directed gold IRA depends on your income and the rules of the custodian you choose. There are also some limitations as far as the types of gold you can own. Generally, the maximum contribution limit is $6,000 for a traditional IRA and $7,000 for a Roth IRA.

While gold is an excellent investment, it is important to remember that its price can go up or down. As a result, self-directed gold IRAs are not suitable for everyone. You should also consider the costs involved. Unlike other self-directed IRAs, a gold self-directed gold IRA can require you to store your gold in a secure place, which adds complexity and costs.

How to Do a Gold IRA Rollover

The first step in transferring money from a 401(k) to a gold IRA is to decide on the amount you want to move. The minimum purchase amount must be met before the rollover can be completed. There are some expenses associated with a gold IRA rollover, but they are usually minimal and are not worth more than $100.

401(k) plans were initially created in the 1980s in response to the growing need for people to save for retirement. These accounts were set up to help employees invest money and save for retirement without having to take out loans. While they have proven to be extremely popular, they are not right for every person and may not be the best option for your retirement savings. Luckily, there is a way to convert your 401(k) to a gold IRA, which is entirely tax-free.

Before rolling over your money into a gold IRA, you must first open an account with an approved custodian. A good resource to find one is Allegiance Gold, which will help you go through the process step-by-step.

Types of Accounts Eligible for Gold IRA Rollover

If you own a 401(k) account or other retirement account, you may be able to rollover your money to a gold IRA. In this scenario, your retirement account manager transfers the funds directly to the new IRA custodian. Once the money is transferred, it will go toward purchasing physical gold or precious metals. The trustee will then hold these metals for you.

However, some accounts are not eligible for a gold IRA rollover. These accounts may not have been held long enough to fund a gold purchase, or they may not have been held in a 401k account long enough to be eligible. In this case, you may be able to do a partial rollover if you are still employed by the company, but you must be over the age of 59 1/2 in order to be eligible. A gold IRA provider can help you with all of the necessary paperwork and explain the tax advantages of precious metals.

Gold IRAs are an excellent option for investors looking to increase their retirement portfolios. They can be used as a safe haven investment, as gold prices tend to move in the opposite direction of stock prices. Thus, they increase in value when stock prices are falling.

How to Set Up a Gold IRA Account

The first step in setting up a gold IRA is to open a new account with a custodian. A custodian is responsible for maintaining your precious metals in a secure location. They will also process the rollover. Unlike a traditional IRA, a gold IRA contains physical precious metals instead of stocks and bonds. As such, most retirement investors will need to learn more about gold and silver before investing. It is important to find a reputable gold and silver provider who can guide you through the process.

Once you have chosen a reputable gold IRA provider, the next step is setting up the account. The custodian will guide you through the process of account setup, selecting metals, and taking care of the paperwork and transaction records. Once you've made your selections, a reputable gold IRA custodian will help you manage your investments and provide additional services.

Many investment companies don't include physical assets in their offerings, preferring instead to offer stock and bond investments. As such, when selecting an investment firm, it's important to select one with experience administering self-directed gold IRAs.

Pros and Cons of Investing in Gold and Silver

There are a number of pros and cons associated with rolling over a 401k into a gold IRA. One of the biggest benefits of investing in gold is its low correlation with other asset classes, including stocks and bonds. In addition, it can help reduce overall portfolio risk. On the downside, gold IRAs tend to have higher fees than other mainstream IRAs. In addition, gold is more expensive than other IRA types, including cryptocurrency and real estate.

The biggest disadvantages to investing in precious metals include the costs of purchase and storage. For instance, some precious metal IRA providers, like Rosland Capital, charge $50 to open an account and $225 per year for storage. These fees may be waived for new customers. However, keep in mind that precious metals have a tendency to rise in value over time, while property may plummet in a down market.

Another advantage of gold IRAs is that they provide investors with tax advantages similar to those of traditional IRAs. However, unlike traditional IRAs, gold IRAs are only taxed on the gain you make on reselling it. Moreover, gold is less volatile than other IRA assets. This makes it a good choice for long-term investing.


A 401k to gold IRA rollover can be an excellent way to diversify your retirement savings. You can invest in gold, silver, or other precious metals, and the amount you choose depends on your personal preferences. Though the market for precious metals is fairly stable, it is also filled with frauds, and you should be wary of these people.

The primary benefit of converting your retirement savings to gold is that it protects you from inflation and provides diversification. Gold and other precious metals have been used as a store of value for thousands of years. Coins made from gold are highly prized in many cultures. However, due to the Great Depression, the Gold Standard was abandoned.

In order to convert a 401k to gold IRA, you must first contact the company that manages your 401k account. Once you have obtained their permission, you must choose between a direct or indirect rollover. The former is the easier option because you transfer funds directly into your gold IRA. The latter is riskier due to the possibility of IRA penalties.

Interested in learning more about rolling over your 401k into a Gold IRA? We recommend checking out Goldco - get your free gold IRA investing kit below:

Last Updated: December 31, 2023