401k to gold IRAs are a popular way of investing in the future of your retirement.
As the value of gold continues to grow, a gold IRA has become increasingly popular with investors. This guide will help you understand the process of easily convert your 401k to a gold IRA.
What is a 401k?
A 401k is a retirement account that is offered by many employers. To be more specific, it’s an employer-sponsored retirement plan that enables workers to save for retirement and make investments that can grow tax-free until they reach retirement age.
As of 2014, most companies offer the Roth 401k option. Unlike traditional 401ks, contributions to Roth 401ks are made with money that has already been taxed. Contributions are limited to $18,000 a year and you must be under 50 years old. If you are over 50 years old, then you can contribute up to $24,000 per year.
When you invest in a 401k, some funds are matched by your company which means that your company will match a certain amount of funds that you have given them towards your retirement. The majority of companies match 50% of the first 6% of salary that employees give to their 401k accounts. That’s essentially free money! You also have the ability to choose how much you want to contribute towards your account each pay period as long as it falls within the annual limits set by the IRS.
Convert 401k to gold IRA
First of all, gold is money. And unlike the dollar, which is backed by the good faith and credit of the US government, gold is a finite asset that has been used as currency for more than 5,000 years.
There are two basic ways that you can rollover your 401(k) into a Gold IRA:
- You can open a new IRA account with a custodian who accepts precious metals like gold, and then transfer funds from your existing 401(k) into the new account. You can also convert an existing traditional IRA into a gold-backed IRA using this method.
- You can open a gold IRA through your current custodian by filling out their paperwork and adding gold to your IRA.
Steps To Convert 401k to gold IRA
Looking to convert 401k to gold IRA? We’re here to help!
Converting a 401k to a gold IRA is simple, and it can be a great way to diversify your portfolio. Here’s how:
1. Choose the best custodian for your needs.
First, you need to choose a gold company or dealer to work with. You’ll need an IRS-approved custodian to oversee your new gold IRA. You will want to do some research to find a company that has a solid reputation for integrity and reliability. You should contact several companies before making your decision. Ask them questions about their experience, their customer service policies, their fees, and their shipping policies.
Choose a gold company that will allow you to buy from multiple dealers, or you might prefer the ability to have physical possession of your gold. There are many different options out there—just do your research and pick the one that works best for you.
2. Rollover your pre-tax money into a precious metals IRA.
Once you’ve chosen your custodian, they will help you roll over your pre-tax money into a self-directed IRA (also known as an IRA LLC). This conversion is easy and usually painless—all you need to do is fill out some paperwork and get started!
You will need to decide what forms of gold you want in your account or if you want to convert it to other precious metals. Most companies offer a variety of options including gold coins and bars as well as certificates of deposit (CDs) which represent ownership of specific amounts of gold stored in secured vaults.
3. Choose the method of funding your new account.
You can choose from multiple methods of funding your account, including rolling over an existing retirement account, making an in-kind transfer from an existing retirement account, or transferring funds from a non-retirement brokerage account.
4. Wait for everything to be completed!
Finally, you need to find out how long it will take to move your funds from your existing retirement account into your new Gold IRA. Most companies can complete this transfer within 48 hours but this will vary depending on the type of account you have and how quickly you complete the required paperwork.
In addition to transferring funds, most companies will also require that you pay any applicable taxes on the transfer amount within 60 days of making the transfer.
Why is choosing your Gold IRA company vital?
It is important to understand that the gold IRA company you choose will be tasked with locating and holding your actual gold, as well as performing a series of administrative tasks in order to ensure compliance with government regulations.
If you have ever tried to buy gold bullion, you have probably seen that it doesn’t come cheap. You can expect to pay over $1,200 per ounce for high-quality gold bars at a local retail store. This is because the precious metals retailer must mark up the price to cover their costs and make a profit. Many online dealers offer lower prices because they operate on lower margins.
Many people have found that they can purchase gold bullion from trusted online dealers for much less than it would cost them to buy at their local retailer. In fact, most customers find that they can purchase for about one-third of the premiums that are charged by retailers.
However, many people who purchase gold bullion from online dealers also find that there are other benefits associated with this method versus purchasing from their local retailer. One of these benefits is the ability to convert 401k to gold IRA rollover.
There are several companies out there today that specialize in converting 401k to gold IRA rollover accounts. These companies are able to help you get your money rolling to profits!