Rollover 401k To IRA
Why do a 401k to a gold IRA rollover, as with an IRA to IRA transaction.
If you haven’t noticed the term ‘gold IRA rollover’ can seem to have different meanings.
This is a pretty simple process (moving your cash from an IRA to one that allows physical precious metals), and it essentially goes on between IRA custodians.
You need to select your precious metals custodian, and also determine where you are going to purchase the precious metals from.
Then your existing custodian writes a check to your prospective precious metals IRA custodian. This is something you can do as often as you want.
You can work directly with a precious metals company such as Regal Assets, or with your selected precious metals IRA custodian. This will differ slightly depending on who you work directly with.
For example, if you decide to work directly with a precious metal IRA custodian to help move your funds into the new account with them, you will also need to select a precious metals broker to buy metal from, and then your new custodian will do that for you.
A gold IRA rollover will be put into a self-directed IRA in which you call the shots with your investments.
Only certain types of gold, silver, palladium and platinum are allowed in a gold IRA, though whomever you work with (precious metals dealer directly or with a specific IRA custodian) will let you know that part.
That is just a matter of preference in whom you want to deal with directly.
Aside those few aspects, once you’ve made a decision on a custodian for the precious metals, and who you want to work with (either the custodian or a precious metals broker), it is a rather simple process with some paperwork for the IRA to gold IRA transaction.
Now about a 401k rollover into an IRA
The first step on how to rollover a 401k to an IRA is you need to figure out if you are actually going to do a full rollover or whether or not you are actually doing a transfer and you’re mixing up the terms.
Sometimes a transfer is actually a much better option for you and sometimes the better choice will be a rollover.
This is something you might want to discuss with your accountant because these are definitely two different types of transactions and you really want to know the difference between them and you also need to know the consequences of both actions so you are prepared for them.
Here are the differences between a rollover and a transfer…
Rollover – if you are doing a rollover, that means you receive the funds and are responsible for getting them deposited into your plan to avoid penalties.
Transfer – if you are doing a transfer, that means the custodians deal with the holdings, liquidating them into cash and ultimately transferring them over to a new custodian.
Be aware if you ever liquidate your retirement accounts, you have 60 days to take the cash and roll it over to a new custodian. As long as the amount you took out within 60 days goes right back into another custodian, you will not be penalized.
Read more about rollovers at IRS.gov
If you are doing a 401k rollover into an IRA, you’ll need to choose a custodian, and think about the investments you want to invest in…
There are plenty of these companies out there for you to choose from for a typical IRA, and there are going to be a lot of various investment options that can be offered to you that just opened up when moving from a 401k to an IRA. There will also be differences in setup fees that you’ll want to find out.
A good thing to do at this point is for you to learn about all of the different options that will be available to you as far as investments go. You have a nice selection available whether you opt for an account that allows physical metal, or another type of IRA.
Essentially a precious metals IRA (which will be a self-directed IRA) allows you to invest in whatever you want that is allowed in a self-directed IRA such as stocks or real estate, with the addition of physical coins and bars. Gold ETFs, gold stocks, investments in mining companies and other non-physical precious metals investments are also allowed.
You will want to make sure it’s the type of IRA that allows you to hold physical gold, silver and precious metals as investments, if that is the type of retirement account you’re looking into.
There are a few ways that you can do a 401K rollover, and a few situations where it is allowed. It isn’t something you can just execute whenever you feel, as you are going to be withdrawing funds from the 401k plan, so you need to be under one of the exemptions to be allowed to withdraw, such as financial hardship or leave of employment.
You can ask someone in the accounting department at your firm or possibly the human resources department to assure you qualify for a withdrawal if you aren’t sure.
Essentially you receive the funds and add them to the new account of your choosing, and roll your cash into a precious metals IRA, a traditional IRA, or even a precious metals Roth IRA.
See videos below for more specifics about a 401k rollover from a financial planner.
Here is a chart on the IRS website about which rollovers you can do (which plans are allowed to be rolled over into, and from which plans).
Now, should you rollover your 401k into an IRA?
Let’s let Jeff Rose in his awesome enthusiasm reply to this question for you:
How about a Roth IRA, how do I rollover my 401k into a Roth IRA?
Again, I’ll let a professional in the industry, Jeff Rose from Good Financial Cents explain this to you via another of his cool videos:
What is it about a Roth IRA?
Here Jeff Rose created a really cool and fun video letting you know why a Roth IRA may be what you want…for as he says…`Tax Free Money Baby!…and Control!’
If you feel a gold IRA is a step you are ready to or want to get going with, or want some further information from Regal Assets, a reputable precious metals company that has a retirement department for this exact purpose, you can click here to enter a few details.
You will be contacted by a specialist at Regal who can answer any questions. By making contact you’ll additionally receive a free gold investment kit valued at over $100 with powerful insider tips about the precious metals industry, as well as why billionaires are investing in gold.
Baby Steps… This is Your Savings We’re Talking About. Here is the Next Step I Recommend for Starting This Whole Process:
If you’re looking to invest your 401k into gold or other precious metals, here is how. Start shopping around to figure out where you’ll get the best deal. Just like anything else, different companies have different offers.
Take Regal Assets for example. They waive the first year of setup fees on investments over $10,000. And while we’re talking about Regal Assets, in my experience they have the fastest guaranteed delivery of metals in the industry.
At least give them a call to get a few of your questions answered. Here is their phone number: 888-790-8109
(PDT business hours)
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