How To Move A 401K To Gold
Moving your 401K to gold or a gold IRA rollover is a move that many investors are making these days. Whether it be for the security of having your savings backed by gold and silver or a desire to take control of a poorly performing 401K, there are pros and cons to moving your 401K to a gold IRA including tax consequences and early withdrawal penalties.
Sometimes these penalties can be minimized by choosing the right gold company for your IRA rollover and they can advise you before you make the decision and pull the trigger since there are long term benefits as well as ways to justify that bite that the government might take. There are gold investment companies that will take care of transfer fees as well as custodial fees for the first year.
Contact A Reputable Gold Company About How To Move A 401K To Gold
Finding the right gold company should be your first step in moving your 401K to gold. If you choose to liquidate your 401K you have 60 days to have the money invested in the new IRA so this decision should be made ahead of time. The new custodian or gold company representative can also answer all your questions and work out the numbers for you. There are several options, such as in-service distributions, that can help minimize this cost of moving your 401K to a gold IRA.
There are instances where you can withdraw funds from your 401K or liquidate a portion of your 401K where it very well may benefit you. For instance, if you have several 401K accounts from several previous employers, the administration fees from these accounts are probably killing you!
Contact Your Previous Employer Or 401K Plan Administrator
You can do this yourself or with the help of the new gold IRA company representative. Be prepared that they are not going to want you to withdraw your funds. They are making money in the form of monthly administration fees.
The more people in the 401K, the more money they make. Some 401K’s are highly invested in the company that you worked for, also. Taking your money and running is not in their best interest so they’ll remind you of the early withdrawal fees and tax consequences to try to scare you.
There is no need to be nervous about this move or to feel bad. After all, it’s your money and your retirement savings. Do you think your plan administrator is going to be a part of your life when you retire? Probably not. Chances are that their retirement depends more upon your retirement funds than they’re going to lead you to believe.
Set Up Your Gold IRA With The Funds From You 401K
Your gold IRA is going to be a little different than your 401K in that you have options of what precious metals you wish to invest in as well as the size of these pieces of gold, silver, platinum and palladium. These decisions will be made depending upon your retirement goals, how often you may want to take distributions from your gold IRA, etc.
Diversifying your gold IRA with other precious metals such as silver, platinum and palladium is important. While gold is often seen a solid long term investment, diversifying your precious metals investment in these other metals can help you to take advantage of these other markets.
My Personal Point Of View For Moving A 401K To A Gold IRA
I had been let go from a job and the plan administrator for the 401K wasn’t turning much of a profit with my money. In addition, I had been fired for what I knew to be personal reasons and I had no desire to line his pockets and make it possible for him to become more wealthy than he already was.
Your decision to move your 401K to a gold IRA must be your own decision to make. Sometimes it will benefit you over the long term while taking a financial hit initially might be necessary but having a poor performing 401K that is being sucked dry by a plan administrator might be a good move for you.
Work the numbers out with your new gold IRA company representative and find that break even point. See how moving your 401K to a gold IRA might work out to become a profitable move over the long term for you and your retirement savings.