How to Roll a 401K into Gold Using a Self-Directed Gold IRA

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Learning how to roll a 401K into gold can help shield your retirement savings from the next major recession. A self-directed gold IRA allows you to hold physical gold, which is more likely to maintain or increase its value when stocks start to fall. 

Luckily, switching from a 401K to a gold IRA is simple. Here is how to roll a 401K into gold.

How to Roll a 401K into Gold – Who Qualifies?

Before you execute a gold IRA rollover from an existing 401K, you need to meet specific eligibility requirements to avoid paying a penalty. The 401K must be inactive, which means that you no longer work for the company that offered the 401K or your employer stopped sponsoring 401Ks. 

Individuals who are 59.5 years of age or older may qualify for an in-service distribution. In-service withdrawals are early distributions that are allowed without penalties for certain conditions. Some 401K plans may require the employee to declare a hardship while others allow withdrawals for any reason after you reach the age of 59.5.

How to Execute a 401K Gold IRA Rollover

If you qualify to withdraw funds from your 401K, the next step is to open a self-directed gold individual retirement account (IRA) with an IRS-approved custodian. After choosing a custodian, you can initiate an indirect or direct transfer. 

If you choose an indirect rollover, the custodian of your existing 401K sends you a check for the balance of your account. You then have 60 days to redeposit the funds with your new gold IRA custodian to avoid a penalty. A direct transfer eliminates the risk of a penalty, as the funds are issued directly from the existing custodian to the new one. 

Now that you know how to roll a 401K into gold, consider opening a gold IRA today. 

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