Are you thinking about converting your existing 401k to a gold IRA? Maybe you intend to do so through a rollover or transfer. Remember, it’s possible to rollover or transfer a 401k from a previous employer without any age restrictions. But you cannot convert your current 401k unless you are over 59 years old.
Barring the above disclaimer, it’s definitely wise to gain exposure to gold and other precious metals in your retirement fund. Why? Gold, silver, platinum, and palladium rise in value during times of economic turmoil.
When the US dollar struggles, precious metals tend to rise in value. When political upheaval rears its ugly head, it’s the perfect time to initiate a 401k to gold IRA rollover.
It’s best to invest with a company that has an excellent track record. That’s where Regal Assets come into the picture. For the past 10 years, they’ve dominated the precious metals investing space. They didn’t achieve this level of success by accident. They earned it. So put your faith in them and you will be richly rewarded.
What Is a Gold IRA Transfer?
When you convert your 401k to a gold IRA, you may do so by initiating a transfer. Transferring your account is different from a rollover as you are about to learn. The main differences include the following:
- It’s possible to transfer your 401k account at any time.
- The way to transfer an existing retirement plan is to do so from custodian to custodian.
- A direct transfer consists of requesting your existing custodian transfer the account by sending your money to your new custodian.
- Your old custodian will make out a distribution check. They will make the check out in the name of your new custodian or trustee for your precious metals IRA.
- Investors can make transfers as many times as they want. These transfers have happened successfully with Regal Assets thousands of times in the past decade plus.
What Is a Gold IRA Rollover?
When you initiate a 401k gold IRA rollover, you can convert an account from your previous employer into a precious metals IRA. Investors fail to realize they aren’t allowed to convert a 401k with their existing employer until they turn 59 years old. So please keep this in mind.
The most important things to know about a gold IRA rollover include:
- A rollover is different than a transfer in one main regard. With a rollover, you will receive the distribution check directly as opposed to your current custodian.
- Once the distribution check is in your possession, you can take it and deposit it into a different gold IRA account with a new custodian.
- There is a time limit on how long you can keep the funds in your possession before depositing them with a new custodian. You only have 60 days to deposit the funds into a new gold IRA account. Otherwise you will have to face the consequences of your actions.
- The consequences of failing to deposit the distribution check are very straightforward. You will have to pay fees and penalties for an early withdrawal before retirement age.
- To preserve tax-deferred status, you can roll over the same money once every 12 months.
As you can see, there are definite big differences between a gold IRA transfer and a gold IRA rollover. Keep these differences in mind, because they are important to know depending on your personal and financial situation.
If you have any questions or concerns, you can always contact Regal Assets, our preferred gold broker of choice. They can better explain the differences between transfers and rollovers. Plus, they can answer all of your other questions and concerns in a timely manner.
Convert 401k to Gold IRA: The Main Benefits
There are exciting benefits to initiating a gold IRA rollover or transfer that you may not have considered. Some of the exciting reasons to open a precious metals IRA include:
- Precious metals growth potential: precious metals have grown tremendously throughout the years but their growth has barely scratched the surface. The potential for further growth has never been better. The US economy is struggling and on the verge of a recession. The stock market is overbought and the bubble is about to burst. There is dissension among the ranks of the US government. It’s only a matter of time before the proverbial poop hits the fan. Will you be poised to reap the financial rewards?
- Tax advantages: investing in a precious metals IRA provides tremendous tax advantages. In most situations, the wide majority of people can claim tax-deductible contributions. This is an amazing way to grow your retirement account even further by growing your investments tax-free.
- Total control over your investments: that’s what you get when you open a self-directed precious metals IRA. Your account is no longer at the whims of an untrustworthy investment manager. You make all the decisions regarding your IRA account. You are the boss and you control your financial destiny. Remember, nobody cares more about your financial well-being than you do.
- Retirement portfolio diversity: it’s never wise to keep all of your eggs in one basket. You need exposure to more than one investment vehicle. When you convert your 401k to a gold IRA, you gain access to precious metals investing for your retirement portfolio. Add this to your investments in the stock market, real estate, bonds, futures, and more, and you have a well-rounded portfolio securing your financial future.
Depending on your personal situation, you can convert your 401k to a gold IRA through the transfer or rollover process. Remember, anyone can rollover or transfer a 401k with a previous employer but only those who are over 59 years old can rollover a 401k with a current employer. We understand that this stuff can get confusing at times. That’s why we always recommend choosing a gold broker that you can trust.
Our #1 recommendation in our List of Top 10 Gold IRA Companies is a company named Regal Assets. They know the rules because they’ve initiated thousands of rollovers and transfers throughout the years. In fact, they taught us about how an investor must be 59 years of age or older before they can convert the 401k from their existing employer into a gold IRA.
To learn more about this important distinction and others, we recommend contacting the premier gold company Regal Assets. They have over a decade of experience in business, many industry accolades, and much more to offer investors like you.