401k Rollover to Gold IRA a Good Idea?




401k Rollover To Gold IRA

If you are planning a 401k rollover to Gold IRA, it is one of the best options you are going to have. The fragility of the dollar in recent times has caused many to look for more stable investment options than mere “paper assets”. In contrast to the steady devaluation of the U.S. Dollar, the improved stability in the price of gold and other precious metals are making them a popular choice of investment worldwide. Gold Individual Retirement Accounts have likewise become a popular option for retirement investment plans.


When you are looking to switch your 401k to another retirement account, you typically have two options. You can either perform a rollover or a transfer. In the case of a rollover, you accept the funds yourself and then deposit it to another investment account. If you are younger than 59½, you will need to perform this within 60 days of liquidating the account to avoid withdrawal penalties. In the case of a transfer, the switch takes place from one custodian to another. Your existing custodian writes a check to the new custodian and the funds are transferred to your preferred account. One advantage of a 401k rollover is that you get a 60 day breathing space and can consider your options well, especially since there are so many investment opportunities open for retirement plans.

A 401k rollover to Gold IRA (or other precious metals rollover, such as silver) is generally a pretty simple process. All you need to do is move your cash from one retirement account to another that allows gold or other physical precious metals, such as platinum, silver and palladium.

You can choose to work directly with a company that handles precious metals investment, such as Regal Assets. Or you can select a custodian for a precious metals account. In case of the latter, you will also have to select a broker to purchase the gold from. Once you have done this, your new custodian will complete the process for you.

A gold retirement account is a type of self-directed account which allows you to manage your investment options by yourself. You can invest in physical gold coins, gold bars or bullion, as well as gold exchange-traded funds (ETFs). Gold IRAs also allow other precious metals such as silver, palladium and platinum. Once you choose a custodian, he will provide you with more details on these options. The whole process involves very little hassle. Once you have selected your custodian and broker to buy the metal from, it is just a matter of simple paperwork.

In view of the global economic crisis, the dollar can be a very fragile investment option. Times of hyperinflation can result in steep devaluation of the dollar and your retirement plans can be seriously affected by this. In contrast, physical gold does not get affected by devaluation. Gold IRAs are therefore a much more stable option. Furthermore, these accounts do not have tax implications and will not get reported to the Internal Revenue Service. Also, there are no penalties when you transfer your assets to a qualified gold partner.