Disclaimer: We are reader supported. We may be compensated from the links in this post, if you use products or services based on our expert recommendations.
Managing your retirement savings does not have to be a nightmare. If you have old 401k accounts from your previous employer, you may want to take advantage of these accounts and roll them over into a gold IRA.
Many people have small retirement accounts from previous employers that have not been rolled into their current 401k plan. These accounts still make money, but they also generate monthly fees for each account. You can streamline your investments and save money each month by rolling over these accounts into a gold IRA.
Protect Your Wealth & Get Huge Tax Saving!
Why Rollover Into A Gold IRA Instead Of My Current 401k Plan?
There are several reasons that you may want to roll over our old 401k plans into a gold IRA instead of your current 401k plan. These reasons include the following:
More Control Of Your Investments
When you invest in a self-direct gold IRA, you will have more control over what your money is being invested in. With a standard 401k plan, the company managing the account will most likely have a limited number of funds you can select from to invest your money. This is beneficial to them, but not so much for you.
When you start a gold IRA, you can hold gold and precious metals in your account and select stocks, bonds, and funds that you desire to hold in the account. You make the decisions of how much gold and stocks you own, and you can buy and sell these stocks based on their performance and your expectations.
More Security For Your Investments
Owning gold is one of the easiest ways to protect your retirement from market fluctuations, inflation, and other financial issues like recessions. Gold tends to perform better during troubled financial times, so your gold investment will help protect your savings during a market downturn.
Many savvy investors balance their investments by always retaining a certain percentage of gold and precious metals in their accounts to offset market volatility.
Potential For Lower Monthly Fees
Although it is free to roll over your old 401k plans into your current 401k, your fees may actually increase. Your monthly fees can change because the account now has a higher value, they must trade the old funds to invest into the ones they hold, or because they charge a higher fee than the old companies.
It is also free to roll over your old accounts into a gold IRA. However, you can shop around with different gold IRA companies to find one that has an attractive fee schedule that will save you money each month. Any time you can cut your expenses is worth the effort.
Added Diversity To Your Investments - Types of Investments
When you have a gold IRA, you can invest in precious metals as well as the stock market. You are allowed to hold gold, silver, platinum, and palladium in your account as long as they meet purity standards and come from approved mints.
Some self-directed IRAs will also allow you to hold additional types of financial products like cryptocurrencies, real estate, promissory notes, treasury bills, and even high-end jewelry as part of your retirement savings.
Diversity is always the key to success when you are investing. When your money is spread out in different investments, you can withstand fluctuations in the stock market.
Added Diversity To Your Investments - Types of Accounts
If you have ever heard your grandmother say, "Don't put all your eggs in one basket," you should take that information to heart. Putting all of your retirement savings into one account can leave you devastated in times of market crisis.
When you have a 401k from your employer, it is also wise to have an IRA. That way, all of your retirement savings are not in one account. If the funds in your 401k suffer losses, you will still be generating retirement income in your IRA. Establishing different retirement accounts is all about protecting yourself from market failures.
Is It Hard To Roll Over Your 401k Into A Gold IRA?
It is quite easy to roll over your old 401k accounts into a gold IRA. It will probably take about five minutes of your time, maybe ten if you have several accounts to roll over. If you work with a gold brokerage firm to roll over the accounts, most of the work will be completed by them, making it even easier.
Starting a gold IRA is as simple as filling out a form to start the account. You will need your personal information to establish the account and any additional information the company may request to verify your identity.
Once you have established the account, generally, after just a few minutes, you will need to fund the account. Since you are rolling over your old accounts into your new gold IRA, all you will have to do is complete the appropriate paperwork to allow the rollover.
You will want the company managing your IRA to complete this transaction. If you cash out your old 401k accounts so that you can fund your new gold IRA, you face paying penalties and taxes for early withdrawal on your retirement account.
When the management company for your gold IRA completes the rollover paperwork for you, they can have the funds from the old accounts transferred directly into your new retirement account. This is a free service, ensuring that your account is not subjected to these penalties.
Funding for your gold IRA can take between two and 14 days. This depends on how quickly the old account holders transfer the accounts. Your new account is already established; it will just have to wait for the funds to arrive before you start making investments.
Once your account has been funded, you can select the gold and other precious metals you may want to hold in your account. This is your initial purchase for your account. You can always purchase more gold coins and bars later when you continue to invest in your retirement.
At this time, you can begin making your other investments as well. Your account should be diversified so that you see the best results for your investments.
Everyone has a different investment strategy. Some people keep their gold investments as low as five percent of their total account value. Others like to build a more significant cushion for their account and invest up to 25 percent of their funds in gold. What you decide will be based on your investment strategy and needs.
Once you have purchased the gold coins and bars you want, you will receive a receipt for your purchase, and the gold will be transferred to an IRS-approved storage facility of your choice. You must keep your gold in this facility until you begin to take withdrawals from your account. Removing the gold account before age 59.5 will lead to penalties for early withdrawal.
IRS Requirements For Owning Gold In Your IRA
There are tow major IRS requirements that you should understand when investing in a gold IRA.
Purity Standards and Approved Mints
The IRS requires that all gold coins and bars purchased be 99.5 percent or higher in gold content. The only exception is the American Gold Eagle Coin. This coin has a lower god purity level, but it is a high-demand collectors coin that otherwise meets all standards for owning gold in your IRA.
Other precious metals allowed in your account have various purity standards ranging from 99.5 percent to 99.9 percent. Silver has the highest purity rating with a requirement that it is 99.9 percent pure to be held in a retirement account.
The IRS also has requirements on which mints you can purchase coins and bars to add to your account. They limit the mints you can purchase from because these mints are guaranteed to meet the purity standards. These mints are located worldwide, so you are not limited too much in the variety you can purchase.
Gold and other precious metals come in many different purity levels. Each of these levels will have different values based on the amount of precious metal in the coin or bar. Since the IRS requires the highest purity levels, you will always have the highest value of precious metals in your account.
IRS Approved Storage Facilities
Because there is tax deferment associated with retirement accounts, all assets held in those accounts must be held securely until the owner is of legal age to withdraw. You must be at least 59.5 to withdraw money from your retirement accounts without penalty.
Because you are placing physical gold and precious metals in your account, the IRS requires that these items are held securely in an approved storage facility until such a time that you can make your withdrawals. At that time, you can sell your gold and precious metals or have them removed from the facility and transferred to your home or office for ownership.
There are IRS-approved storage facilities throughout the United States, so you are not limited to where you can store your gold. Most gold brokers will ship your gold and precious metals directly to your chosen storage facility so that you never have to worry about being charged for early withdrawal of retirement funds.
Where Do I Start A Gold IRA?
The easiest way to start a gold IRA is to work with a gold brokerage firm that offers this service. Many different companies offer gold IRAs. We have reviewed several companies and have found the three that we believe provide the most benefits to their customers.
Augusta Precious Metals (WINNER)
Augusta Precious Metals is the leading provider of gold IRA services. This company is based in Wyoming and has been providing gold IRA services for over a decade. They are also full-service gold and silver broker where you can purchase coins and bars for your personal collection.
Augusta Precious Metals has received many national awards for its service and has been ranked as a top gold IRA country by Money magazine. The company has thousands of 5-star reviews across multiple review sites and has an amazing customer satisfaction rating. You will find exceptional educational materials on their site so you can make informed investment decisions.
#2. Goldco
Goldco is a California-based company that has been an industry leader for over ten years. The company has ranked as one of the best in the industry year after year. Goldco has thousands of positive reviews across all of the review sites and is in good standing with the Better Business Bureau.
Goldco has exceptional customer service, a large selection of gold and silver coins and bars, and works with different companies to manage your IRA so that you get exactly what you want from a retirement account.
American Hartford Gold has been operating as a gold brokerage firm for over ten years in California and has a fantastic track record for customer satisfaction. The company continually receives customer service and satisfaction awards and has thousands of 5-star ratings across all platforms.
American Hartford Gold has the largest selection of gold and silver bars and coins out of the three companies. They also offer significant amounts of educational materials for their clients so that they can make wise investment choices.
