Learn How to Execute a 401k Gold IRA Rollover: How-To Guide

You might be a bit sheepish about putting your money into a gold-standard savings account. It’s not as easy to understand as a cash-based IRA, and it’s way more hassle.

Intro to Gold Investments

You might be a bit sheepish about putting your money into a gold-standard savings account. It's not as easy to understand as a cash-based IRA, and it's way more hassle.

But what you might not know is that investing in gold with your retirement funds can help you save up for the future, as well as protect you from inflation and other downsides of traditional investment vehicles.

In this post, we'll walk through exactly how you should be investing in gold, even if you've got a traditional IRA or 401k.

We'll teach you why gold is the best choice for retirement, how to invest in gold, how much you can invest, and how to rollover your 401k into a gold IRA.

Why is Gold Important?

Gold is a unique asset because it's considered an inflation protectant. The price of gold, sort of like the value of the U.S. dollar, fluctuates based on the supply and demand of the market.

If people are scared that their currency will lose its weight, they seek out something that won't lose worth, like gold or silver.

That means that if you invest your hard-earned money in gold before you retire, it can help you keep up with inflation if your retirement fund starts dropping in value.

What is a Gold IRA Rollover?

If you choose to invest your retirement savings in gold, you'll have to convert the funds from their current form into gold. That's called a Gold IRA rollover.

To do that, you'll need two things: First, the funds must be in one of the following types of accounts:

  • Traditional IRA
  • Roth IRA
  • 401k

Second, you must use a gold-standard custodian to help you with the conversion process.

When you roll over your IRA, it's essential to understand that you're not selling the assets. You're just shifting the funds from one account to another.

You can do this with endorsed checks or a wire transfer, depending on which type of custodian you choose.

Gold IRA Rollover vs. Gold IRA Transfer

Gold IRA rollover and transfer are two ways to make a gold IRA. An IRA rollover is often longer and slower than a transfer, but it's also more thorough. A gold IRA transfer is faster, but you might end up paying more in fees.

Gold IRA Rollover

In a gold IRA rollover, the custodian will place your funds into an account that's separate from the company's assets. That prevents the custodian from dipping into your fund when they need extra cash.

Gold IRA Transfer

On the other hand, a transfer takes less time because you don't have to wait for the custodian to set up an entirely new account for you ― they move your funds over from one institution to another.

Rules for Rollovers

Consider these rules:

  • You can only rollover 100% of your retirement savings within the first five years. After that, you must keep at least 50% of your retirement funds in a traditional IRA or 401k.
  • To do an IRA rollover, you must own your property outright and have no mortgage on it. You'll be responsible for paying off any debt you'd have to pay if you had to sell the house to pay off your retirement account.
  • You must not convert more than 50% of your retirement savings into gold each year in one call.

Rules for Transfers

You might not have to follow any rules when you do a transfer, but the IRS has some guidelines that you should at least be aware of:

  • You must own the property outright and have no mortgage on it. You'll be responsible for paying off any debt you'd have to pay if you had to sell the house to pay off your retirement account.
  • You must not convert more than 50% of your retirement savings into gold each year in one call.

How to do a 401k to Gold IRA Rollover

If you have a 401k from your employer, you do have the option of rolling it over into a gold-standard IRA. Here's how:

How To Do A 401k To Gold IRA Rollover

Step 1: Choose a suitable gold IRA type

If you can do a rollover, your first step will be to choose a gold IRA custodian. There are two basic types: a gold self-directed IRA account and a traditional IRA with an online-traded fund option.

In general, a self-directed IRA account is more flexible and allows you to invest in a wider variety of assets. It'll cost you more money in fees (in this case, about $50 per year), but it's worth it for the added flexibility.

Rolling your 401k into a traditional IRA that trades online-traded funds is the most expensive option, but it's also the fastest process. You can get started within a day or two.

Step 2: Pick a custodian

Now that you know the types of gold IRAs you can choose from, it's time to pick a custodian.

They'll help you with the rollover process, so make sure they have a good reputation and will be available to answer any questions that might come up during the process.

Step 3: Eligible funds rollover to gold IRA

Your next step is to make sure that all of your eligible retirement funds can be rolled into a gold-standard IRA.

You'll want to check with your fund company, then call the custodian to make sure that they'll let you roll the funds over.

Step 4: Purchase precious metals

Once your funds arrive in the gold IRA, you'll need to purchase your precious metals. Go to your custodian and ask them for a list of lovely metal dealers that you can use.

Then, pick out the ones that seem to offer the best prices on gold and purchase from them directly.

Step 5: Shipment to the storage facility

Once you have your precious metals, you'll want to get them to the storage facility. You'll need to use a bonded courier with a reputation for safe and reliable delivery. Ensure that the couriers are insured and that they've been in business for at least one year.

That's because it's easy for people who scam these services to commit fraud, like claiming that their vehicles were damaged when they weren't and making other false claims.

Determine your Best Gold Investment Strategy

When you're picking a strategy to invest in, you'll want to consider the following strategies:

Safeguarding Your Assets By Diversifying

Just like any good investor, you'll want to diversify your precious metals holdings. That means you should spread your investments out over several different kinds of coins and bars, along with some options online. Here's why:

Silver generally costs less than gold, but it can lose value more quickly than gold. So, the more silver you have in your portfolio, the more risk you're taking on ― but it could also result in more significant gains if silver ends up doing better than gold.

There are two ways to diversify by type of metal ― buying silver and gold coins separately or buying them as one kind of coin called an investment round or a commemorative round.

In general, it's best to diversify across different types of precious metals because you'll have a better chance of getting a higher return on your investment.

Most Investors No Longer Trust The Dollar

Although gold can be risky, particularly in the short term, its value does tend to increase as the value of the dollar decreases. In other words, it grows as people lose faith in their government's ability to govern.

That's because when people aren't sure what the government will do next ― and when they're worried that its currency will become worthless ― they turn to precious metals like gold.

It might not happen tomorrow or even next year, but it will inevitably occur. So if you don't believe we'll have a reliable currency system anytime soon, you'll want a diversified portfolio of precious metals, so you're protected.

Lack of Confidence in the Global Financial System

Even if you don't believe that the American dollar will fail, you may have noticed that other countries are starting to have financial problems. And although they might be worse off than we are, they still make good trading partners.

That's because we trade with them so frequently that it's easy for us to get caught up in their problems through no fault of our own. So, what happens when countries go into a downward spiral and start devaluing their currencies?

At first, they'll try to maintain the value of their money by buying it on international markets — but when they buy too much and lose market confidence, it can backfire on them. Once that happens, they'll start buying, even more, to prop up their currency, which can cause many problems.

For starters, the markets are already inflated. Then, if another government sees what's going on and starts doing the same thing, it can cause an economic disaster. That's why you need to diversify your portfolio by buying precious metals from around the world.

It's not a perfect solution ― but because gold is an internationally traded substance, it's a lot harder for governments to manipulate the price of gold than it is for them to control other assets like stocks and bonds.

And that means you have better protection in case another country goes into a financial crisis.

How ETF'S Differ from Physical Gold

When you trade precious metals, you'll have to decide whether to buy physical gold or ETFs. They both have their benefits, but there are also some distinctions that you should consider.

ETF'S vs Physical Gold

ETFs are bought and sold like stocks, which means they're more liquid and easier to manage. But some kinds of ETFs can be an expensive way to buy gold.

This is because they charge a lot of money in fees when you purchase your shares — 1.5% is an average amount. That makes it much harder for the ETF holders to profit from that investment when they sell it back to the market later on.

The other issue with ETFs is that you're trading stocks, and if something happens in the market, it can cause the value of your units to decrease. This isn't a huge deal if you use an hourly chart and only make small trades, but it's still something to consider.

On the other hand, physical gold is more expensive than ETF's — but in some ways, it can be a better way to invest in gold. That's because physical gold has fewer expenses than ETFs, and there are no commissions when you buy or sell your holdings.

Physical gold also tends to have lower price fluctuations ― which means that you'll have more opportunity for profit when you sell it back into the market later on.

What are the Current Legal Restrictions on Bars and Coins?

Currently, there are a few restrictions on how much gold you can buy from the government, how you can buy it, and where you can store it. But keep in mind that these laws are subject to change at any time.

As of now, there's no limit on how much gold you can buy from the government — so if you want to purchase some of your holdings in gold, there's no reason why you shouldn't be able to.

However, each person is limited to holding five hundred ounces of gold at any given time — and if you want more than that amount, your options include having multiple accounts or storing your coins overseas.

If you want to buy gold coins or bars, you'll have to go through a bank or broker who is permitted to sell gold — and some banks and brokers are more willing than others. You'll also have to provide a Social Security number and the identification that your bank requires.

But if you want to buy gold online, then you can be hit with some hefty sales tax laws that differ from state to state. Some states don't even allow it — but in most states, the same rules apply when buying precious metals in person.

You need valid identification, proof of citizenship, and a Social Security number for each account you have.

How to Select a Gold IRA Company to Assist You?

Once you've decided to invest in gold, then you'll have to choose a gold IRA company that you're comfortable working with. Here are some important questions you should ask:

What is your time frame?

Fees tend to be higher if there's a longer "time frame" involved — and the longer the time frame, the more expenses can be charged. For instance, 24-hour customer service is likely more expensive than seven-day customer service.

Will it be easy to cash out my IRA?

Many gold IRA companies force you to take a penalty if you want to cash out early. Sometimes, the penalty can be as high as ten percent. Because of that, you want to make sure that you're comfortable waiting for your money.

What are your delivery and storage options?

You'll want an IRA company that is willing to deliver gold directly to your home or office address — and some companies may even have a financial advisor who will work with you face-to-face or over the phone.

What are your rates?

As temporary as the laws are, it's still important to know what rates you can expect. This way, you won't be surprised when your IRA fund has increased or decreased over the years.

Top 3 Gold Investment Companies

By the way, here are a couple of gold investment companies that will send you valuable information about precious metals and the market.

If you have not heard about them before, it may be time for you to reach out to them and request your FREE gold investment kit. Here are three viable gold dealers for you to consider:

Goldco is the best company that offers a traditional IRA gold program. It provides fast and easy ways to see how the precious metal market is doing and take advantage of the many opportunities.

Goldco Review

The company is also very dependable, as you can count on getting rich slowly over the next decade or more.

Reason to use Goldco

  • You can see how the stock market is doing, including precious metals and stocks.
  • You will have a chance to use your IRA funds for other purposes.
  • The company offers 24/7 customer service and seven-day-a-week phone support.
  • It will provide you with a safe place to keep your IRA.
  • The company offers secure storage.
  • You will be able to track your IRA returns.
  • You will receive the best customer support and guidance.

Reason to NOT use Goldco

  • It can be expensive for some people.
  • The company may require a physical brick-and-mortar office.

Birch Gold is a company that can help you avoid the high banking fees on your IRA funds. Birch offers two IRA programs: one managed in-house and another that you can use online.

Birch Gold Group

You will be able to take advantage of the company's deep market research and give yourself a better understanding of what kind of investments you want to make.

This company can help you reach your long-term investment goals using precious metals.

Reason to use Goldco

  • The company can help you take advantage of the many investment opportunities available.
  • You can invest in gold, silver, and other precious metals.
  • The company uses a low overhead model, which allows it to stay above the minimum payout of most other companies.
  • The company offers two different IRA products, allowing you to choose the one that will work best for you.
  • The company is backed by an investment advisory firm, which offers you a little more peace of mind.
  • The company will show you how the stock market, including precious metals, is doing.
  • You will be able to track your IRA investments and see how much money you are making.

Reason to NOT use Goldco

  • This company's services can be expensive for some people.
  • A physical brick-and-mortar office may be required.

Augusta Precious Metals, LLC is a company that provides discounted gold bullion coins, bars, and other precious metals. You will get the best prices on coins, supplies, and bags. You will also get the best prices on silver bars and other metals.


The company is also an excellent source of jewelry in gold and silver. You will be able to make your investment grow by taking advantage of the company's many discounts.

Reason to use Goldco

  • The company offers discounts on gold bullion coins, silver bars, and supplies.
  • You will be able to take advantage of the discounted prices.
  • The company uses a low overhead model, which allows it to stay above the minimum payout of most other companies.
  • The company offers an IRA program for those looking to invest in gold or silver.
  • It offers a convenient way to make your IRA funds grow without losing too much money in banking fees.
  • The company offers secure storage and tracking services.
  • The company offers 24/7 customer service and seven-day-a-week phone support.
  • It will provide you with a safe place to keep your IRA.
  • You will be able to take advantage of the company's great customer support and guidance.

Reason to NOT use Goldco

  • Augusta's services may seem expensive for some investors.
  • The company will require a physical brick-and-mortar office.

Which company is right for you? If you're torn between three different companies, then it's time to look at each one a little more closely.


Final Thoughts

This post has given you the facts on IRAs and precious metals investments. It would help if you now understood what these investments involve and knew that they could be successful with proper research and planning. You can take advantage of many different options, so use them wisely.

Our #1 Recommendation

We recommend Goldco, and this is for two reasons. First, it's an IRA, which allows you to save money on your taxes. You'll also get a better return on that money in the long run. And second, in this post, we pointed out how they use gold as the basis of their assets.

Gold is an excellent investment, and it has proven to be especially valuable over the long term. It's a great way to start investing in precious metals and see how it works for you. If you are thinking of investing in gold, you should look at Goldco.

About the Author

Since 2008, Savary Gold has been one of the world's leading mining exploration & investment resources for gold and precious metals. SavaryGold.com's mission is to provide proven insider knowledge resources about retirement investing to its readers to make informed investment decisions and better manage risk.

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