401k Rollover To Gold IRA Rules

The 401k is the most widely held retirement plan but it does not allow physical precious metals in the plan. For this reason, many people are interested in doing a 401k rollover into a Roth IRA.

If you left your job or are still working, if you meet a certain age requirement, you can now rollover your 401k directly into a Roth IRA.

If you have a 401k with your current employer, you are not allowed to roll the money into an IRA until you quit or are fired. In this case, it’s best to open up a self directed Gold IRA as a brand new retirement plan.

Rules For Rolling Over A 401k Into A IRA

1 – You can not be working at your job anymore. You either had to quit or retire unless you meet certain age requirements. Once you leave the company you had your 401k with, you can then convert in into a IRA. When you do this, you have to pay the taxes. You have to claim your 401k as income on your taxes for that year.

2 – If you are 59 1/2 and are still working, you can do what is called an in-service distribution and then convert that directly into a Roth IRA. Again, you must claim and pay the taxes on the in-service distribution for that year.

When you leave a job or lose it, you may end up with a 401k from a previous employer that just sits there. If you get a new job with a retirement plan, then you may have the options to roll it over into the new 401k.

If you do not acquire that kind of job or you go into business for yourself, this leftover 401k does not have to remain forgotten in a corner of your investment portfolio. You can rollover your 401k into an IRA. In fact, many financial experts recommend this move. The possibilities with the typical IRA are much more diverse than the average 401k.

For a IRA you want to make sure it’s the type of IRA that allows you to hold physical gold, silver and precious metals as investments. What you need is a self directed Gold IRA.

Frequently Asked Questions about 401k Rollover To Gold IRA Rules


How can I buy gold in my 401k?

You can not buy physical gold in a 401k but you can do a 401k rollover into a gold IRA.

If you have a 401k from a previous employer, you can do a 401k rollover into a self directed IRA which allows you to buy physical gold.

In 2012, I helped a gentleman who had $200,000 sitting in a 401k from a previous employer, roll that money into a self directed IRA so he could buy gold. He had another 401k with his current employer with another $200,000 in it. He wanted his entire $400,000 retirement to be 50% physical gold, and 50% in the stock market. This way, when the stock market under performs, gold tends to outperform. When gold under performs, stocks tend to outperform. His main goal was to preserve his $400,000 retirement while slowly growing it.

There is a company that can handle this for you and make the process extremely easy. Click here to check out Regal Assets.

Why is gold a deflation hedge?

Deflation is when too many goods are produced and there is not enough demand for those goods. This causes inventories to rise and prices to fall (deflation). Production eventually stops and then lay-offs occur and wages fall. Falling wages cause a further drop in demand, and the vicious cycle of deflation starts. During deflationary cycles, governments try to boost demand by lowering the interest rates, and by fiscal stimulus.

How do you hedge against deflationary cycles? One of the only ways is to hold gold. Commodities used in production collapse in price, but not versus paper currencies, but versus gold, which becomes the ultimate currency. Gold remains the only safe haven in a chronic deflationary cycle.

Relatively few people alive today in the West have experienced deflation, but for Europeans, that may be changing. Anxieties are rising in the euro zone that deflation—the phenomenon of persistent falling prices across the economy that blighted the lives of millions in the 1930s—may be starting to take root as it did in Japan in the mid-1990s. Deflation is a hidden threat within the Eurozone economy.

Mike Maloney spoke at a bankers conference about the coming dollar crisis and the next deflationary cycle.