401k Gold Rollover Step by Step Guide

Gold Bar

In recent years, everybody seems to be talking about Gold IRAs and 401k accounts and there’s a very good reason for this. Not only does the price of gold remain unharmed during times of turbulence, the precious metal has always retained its value due to its rarity across the globe. Regardless of what happens with the economy and the dollar in the years ahead, one thing is guaranteed; the price of gold will remain steady.

If you’re considering a 401k gold rollover for this very reason, it’s good to hear that you’re taking a proactive approach with your retirement money but you probably need more information. Today, we’re going to break down how it all works and how you can get started.

What Is A 401k Gold Rollover?

Rather than having your retirement money in a standard IRA or 401k, the idea of a 401k gold rollover is to get your money into an account that invests in gold rather than stocks, shares, and other assets impacted by the economy and dollar. If you’ve already got a 401k, your existing custodian will pay you the money and you’ll have a certain amount of time to then deposit this money into the new account with the new custodian. Suddenly, your money will be safer and you don’t have to worry about the economy or whether there’s going to be another financial crisis.

As mentioned, you will only have a certain amount of time to make the deposit after receiving the money so it’s very important you follow the instructions of the new custodian. If you hold onto the money for too long, it could be treated as income and you’ll receive a tax on the amount even if you pay it into the new 401k the next day.

Step-By-Step Guide
Step By Step

To provide the best help, we feel as though the best way to approach this subject will be with a step-by-step guide of how it all works. With this, you’ll know exactly what comes next at each stage and how to make the most of your retirement money!

Step 1 – First and foremost, you need to do some research and your reading of this guide shows that you’re willing to do this. Over time, make some notes, learn about the best and most reputable companies, the different processes they use, etc.

Step 2 – How much of your retirement money do you actually want to be invested in gold in this way? Are you willing to place all of your money into a 401k gold rollover or would you prefer to split it? Again, research will help you with this answer as well as professional, impartial help.

Step 3 – Next up, you’ll need to create a shortlist of custodians; make sure the list has three or four names. If you aren’t sure where to start, think about your considerations before anything else and then find the companies that match your own needs because this is likely to lead to the best experience in the long-term.

When looking for a company, keep numerous considerations in mind starting with their experience and reputation within the market. Do their previous customers speak positively of the service? Does the custodian have hundreds of negative reviews online? Although every company is likely to have a handful of bad reviews, they should be mostly positive.

In addition to reputation, you should also be looking towards their processes in terms of keeping your investment safe.

  • How do they keep the precious metals secure?
  • How quick is the process from your investment to having the gold locked up in a secure environment?
  • Who is responsible for your investment during the period of transit?

Finally, we recommend talking to any potential custodian because you should be able to glean all sorts of information from a quick and simple conversation. Rather than doing all they can to get their hands on your money, they should be doing all they can to inform you of your options so you can make the best decision for your future. Often, they’ll offer a free investing kit where you can read and find out more information.

Step 4 – If you don’t feel comfortable at any stage, don’t sign anything. In truth, no custodian has the right to get frustrated or ‘pushy’ if you’re taking your time because this is a big decision for you; it’s your retirement fund, after all. If you aren’t too good with finances and need a little help, there’s nothing wrong with contacting a financial advisor because they’ll assess your finances and give advice based on only your financial future.

Step 5 – Once you’ve found the right service and you’re happy to go ahead, you can fill in the necessary paperwork; some companies now use e-Signing and virtual paperwork which means you can do everything from the comfort of your own home. Before signing, make sure you’re aware of the next steps, how long everything will take, etc.

Step 6 – As your new custodian receives and accepts the paperwork, they’ll initiate the process and get in contact with your old custodian (or existing custodian, if you’ve decided to split your money). Depending on what you’ve decided, they’ll purchase the appropriate precious metals after you’ve sent the money (as discussed previously) via a wire transfer.

Step 7 – As the gold has been received, you’ll be sent an invoice and the precious metals will be stored securely. At this point, the 401k gold rollover is complete and you can have peace of mind in that your money is tied up in assets that never lose value. Considering we’ve now depleted the majority of mines in the world, it looks as though this will remain the case forever.

Top Tips for Success

If you want to avoid errors, you can help the process to go smoothly by following some simple tips!

Firstly, you need to make sure that you qualify for a rollover and there are certain ‘qualifying events’ that allow for this change. For example, a change of employer will be one along with retirement itself. If you plan to roll over all payments from your existing 401k to a new 401k, this shouldn’t be a problem.

Secondly, don’t forgo the research phase because it’s going to help you at numerous stages of the process. The more you know about your finances and how it all works, the better placed you’ll be to stay on top of your decisions.

Thirdly, don’t be afraid to contact a financial advisor because they’ll offer impartial advice. As long as you ensure the advisor doesn’t get a commission for certain products, they’ll help with the advice you need.

Finally, we recommend taking your time throughout the process. Considering this is your retirement money on the line, don’t rush into a decision and then regret it immediately. Instead, take your time and make a decision that allows you to enjoy your retirement as you deserve after committing to saving for so long!

Our personal recommendation to safeguard your future with gold is to contact Regal Assets, The #1 Rated Gold Investment Company 7 years in a row, Click Here To Request A FREE Gold Investors Kit.

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