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How to Move Part of Your 457b to a Gold IRA 

converting a 457b to a gold ira

Introduction - 457b Rollover To Gold IRA

Our readers frequently ask, “Can I rollover a governmental 457(b) to a gold IRA Retirement Plan and enjoy tax savings?” If the government provides your plan, the answer to this question is almost certainly yes. If your plan is non-governmental, the answer is almost certainly no. Still, it’s always worth checking the plan rules with your employers.

Government employees generally stay in their jobs for longer than non-government employees, and they’re less likely to have many different governmental retirement savings tax programs such as 401k, 457(b), and 403(b) plans. The typical American citizen may end up with as many as fifteen different retirement savings programs unless they consolidate the number of plans down. Consolidating the number of plans can help streamline and manage their governmental retirement account effectively.

If you're an employee below 50, you can contribute up to $19,500 into your 457(b) savings account in 2021. For those over 50, you have the option to add another $6,500 per year, allowing you to contribute a total of $26,000 annually to your 457(b) savings account.

If you have a 457(b) plan and want to invest some of it into a gold IRA, the best way to achieve this is via a direct rollover into a gold Individual Retirement Account. Many programs offer this option.

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You could also take the opportunity to consolidate other retirement savings by setting up other IRA plans to handle all your different investments. You shouldn’t need more than two IRA plans—one for Gold, Silver, Platinum and Plalladium and one for everything else.

Suppose you have more than one employer-based  plan and wish to consolidate the plans into one or two IRA plans; this is called retirement plan consolidation. By consolidating multiple plans into a single plan, you make the burden of administration easier, and, in some cases, this can reduce the fees you have to pay.

For example, you may invest in one gold IRA and one more general IRA plan. By having two plans—one that allows you to invest in precious metals and another that allows you to invest in a wider portfolio of assets, such as stock market bonds and property—you will secure the best of both worlds, allowing for a truly diverse range of assets to help ensure your investment choices are secure.

Earlier in this article, we stated that the best way to roll over your 457(b) or 401k to a gold IRA plan was by utilizing the direct rollover mechanism. A direct rollover will ensure your funds are transferred without unnecessary tax.

Roolover 401k to Precious Metal Independant Retirement Account in 2021

Why Roll Over Your 457(b) to a Gold IRA Plan?

It’s likely that in your current 457(b)  plan, all of the assets are stocks. If you have a good financial advisor who is looking out for your best interests, they will help you assess the level of risk you’re prepared to accept and advise you to invest in stocks that have historically performed well, taking into account the level of risk you’re prepared to take. By rolling over some of your 457(b) into a gold IRA or, better still, a more diversified precious metals IRA, you’re setting up an additional level of risk reduction.

Broadly speaking, when the world’s stock markets crash, investors look for safer places to invest their money. For a long time, investors have turned to gold, silver, platinum, and palladium to find this safe haven.


Why converting a 427b to gold IRA is a good idea in times of recession

You can see from the chart above that gold has fared reasonably well during every significant decline in the S&P 500. Even if you analyze some key historic dates where our country came under extreme physical threat, such as 9/11, gold opened at $273 per ounce and spiked at $290 that morning, a 6.2% gain in trading.  This was a direct result of people looking for the safe haven that gold is known to provide.

Investing in silver, gold platinum and palladium  is an excellent way of providing additional diversification for part of your retirement planning. If you invest in gold or other precious metals, you’re putting your money into physical assets that are already scarce and will only become rarer over time.

Earlier, we recommended that you don’t hold all of your 457(b) plan in stocks or bonds or in one type of asset. The same logic applies when considering rolling over your 457(b) plan to a gold IRA—only look to invest a portion of your retirement Savings in a basket of precious metals. As a maximum, we suggest that no more than 30% of your retirement funds are invested in precious metals.

Further diversification of your gold IRA can be achieved by having some of your precious metals IRA plan invested in bullion and some in qualifying special metal coins. Precious metal coins will always retain their bullion value. Some will even increase in value beyond their melt worth as they become rarer and more sought after by coin collectors.

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Augusta Precious Metals 457(b) to Gold IRA Rollover

With Hall of Fame quarterback Joe Montana as its corporate ambassador, Augusta Precious Metals is one of the more prominent gold IRA companies. It partners with the Royal Canadian Mint to bring purer coins to the American public. 

From the start, Augusta Precious Metals dedicates a specialist to your account. You enjoy lifetime customer support. One of the key drawbacks of Augusta Precious Metals is that you cannot place an online order. 

The broker may not be as big on consumer education as the Birch Gold Group but it does offer an impressive array of informational material covering effective diversification, inflation protection, and the benefits of owning precious metals.

You need to invest a minimum of $50,000 to buy gold or silver from the broker. It costs $50 to establish a gold IRA with August Precious Metals. Annual fees comprise a $100 storage fee and $80 custodian maintenance fee. 



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Request More Information on Moving Part of Your 457b into a Gold IRA Plan

Frequently Asked Questions About  Gold IRA Accounts.

What is a 457(b) Gold  IRA?

Individual retirement accounts (IRA) are a form of tax-advantageous retirement account designed to help people save for their retirement. There are various types of IRAs, including traditional IRAs, Roth IRAs, and gold IRAs. You cannot mix Gold IRAs and traditional IRAs in the same account. There is no such thing as a 457(b) Gold IRA plan, you just transfer or rollover fund from your 457b to to a Gold IRA

As a senior considering a Gold IRA rollover from a 457 plan, what are the contribution limits and fees I should be aware of, and how does this affect my retirement planning?

When rolling over a 457 plan to a Gold IRA, it’s important to understand that contribution limits for the year don't apply to rollover amounts. However, any new contributions to your Gold IRA must adhere to the annual IRA contribution limits set by the IRS. Be mindful of potential setup and maintenance fees that a Gold IRA company may charge. These fees can vary, so it's essential to conduct due diligence by checking customer ratings and company reputation. Consider the advantages, such as protection against inflation and portfolio diversification. Remember to check for any storage costs and understand the custodian's security measures for your investment.

What are the tax implications and potential withdrawal penalties for seniors transferring money from a 457(b) to a Gold IRA, especially when investing in precious metals like gold, silver, and platinum?

Transferring money from a 457(b) to a Gold IRA is usually a non-taxable event if it is done as a direct rollover. However, you should be aware of the tax status of your 457(b), as it can be pretax or Roth. With pretax accounts, you will pay taxes on distributions in retirement, while Roth accounts offer tax-free withdrawals. As for precious metals investments, they must meet IRS purity standards, and while Gold IRAs typically do not have an early withdrawal penalty, they do have regular IRA withdrawal rules, including taxes on distributions. Consulting with a precious metals specialist and a tax advisor can provide clarity on the rules and help ensure adherence to regulations set by the U.S. Treasury Department.

When considering a Gold IRA rollover, it is essential to evaluate investment goals, understand the rollover process, and partner with a reputable company. Employers and financial advisors can provide guidance, but ultimately the decision lies with the individual, considering their unique retirement strategy and investment goals.

Where can I find more info about Gold and Gold IRA Rollovers
To find out more information about Gold and Gold IRAs, request an information pack by clicking this link
Why should I invest in a Gold IRA?
You should invest in Gold IRA because it is a tax-efficient way to save for your retirement years. A Gold IRA is also an excellent hedge for inflation. Gold and other precious metals have primarily increased in value as inflation rises and the dollar's buying power decreases.
What types of retirement accounts qualify for a Gold IRA rollover?
Existing traditional IRAs, SEP IRAs, Simple IRA Roth IRAs and Self-directed IRAs can all be transferred into a Gold IRA. Additionally, it may be possible to rollover your 401k, 403b plan into a Gold IRA. However, we do not recommend rolling over the whole of these plans into even the Best Gold IRA Plans.
How does a Gold IRA work?
A Gold IRA works as a self-directed individual retirement account. The difference between a Gold IRA and a traditional IRA is that a Gold IRA allows you to purchase and keep a variety of qualifying precious metal bullion and precious metals coins. A Gold IRA was made possible when the US Congress allowed this in 1997.
If you are rolling over your 401k plan into a Gold IRA, it is not a case of withdrawing the cash, holding it for a while and then purchasing your Gold or precious metals. The transaction is viewed as continuous and, therefore, should not incur any tax penalties. Withdrawing money from a 401k, 403b, or 457b can incur both State and Federal tax penalties,
How important is customer support with a Gold IRA provider?
Customer services, the quality of the information provided, the quality of advice given, and the efficiency of operation are, in our opinion, the key things to consider when choosing which Gold IRA company best suits your needs. All the companies we have shortlisted and reviewed on the BearlakesGold site have excellent customers services
How can I diversify my retirement savings by rolling over my 457b into a precious metals IRA with Augusta Precious Metals, ensuring protection against market volatility and inflation?
By initiating a rollover process from your 457b retirement account to a precious metals IRA offered by Augusta Precious Metals, you can diversify your retirement portfolio beyond traditional assets like stocks and bonds. Precious metals, such as gold and silver, have historically served as a hedge against market volatility and inflation, safeguarding the value of your savings over time.
What to do with your existing retirement Savings?
We advocate taking part of your existing retirement savings and rolling it over into a Gold IRA. This has tax advantages and can help secure your investment capital against inflation. Gold has historically been a great hedge against inflation; as the value of the dollar goes down, Also do not forget if your have more than one retirment accounts you and consolidate as many retiremnt accounts as you like into  a precious metals IRA

Gold seems to have gone up more times than not.
What are the tax implications and potential withdrawal penalties when transferring funds from my 457b retirement account to a gold IRA managed by American Hartford Gold, and how can I navigate these efficiently?
When considering a rollover from your 457b retirement account to a gold IRA with American Hartford Gold, it's crucial to understand the tax implications and potential penalties involved. Typically, rollovers from retirement accounts like the 457b to a gold IRA are tax-free if done correctly, but it's essential to consult with a tax advisor to ensure compliance with IRS regulations. Additionally, withdrawing funds from your 457b before the age of 59 1/2 may result in early withdrawal penalties, so it's advisable to explore all options and proceed with caution.
What steps do I need to follow in the rollover process from my 457b to a self-directed IRA with a focus on precious metals, and how can a precious metals specialist assist me in this transition?
To initiate a rollover from your 457b to a self-directed IRA specializing in precious metals, you'll first need to select a reputable custodian capable of managing such investments. Next, complete the necessary paperwork to authorize the rollover, ensuring compliance with IRS regulations and any employer-specific requirements. Throughout this process, a knowledgeable precious metals specialist can provide valuable guidance, helping you choose suitable investment options and navigate the complexities of precious metals investing within an IRA structure.
an I rollover my 457b retirement plan into a gold IRA with American Hartford Gold, allowing for tax-deferred growth and protection against fiat currency fluctuations, and what are the investment options available within this IRA structure?
Yes, you can roll over your 457b retirement plan into a gold IRA offered by American Hartford Gold, potentially benefiting from tax-deferred growth and safeguarding your savings against fiat currency fluctuations. Within this IRA structure, you'll have access to various investment options, including gold and silver coins, bars, and other IRS-approved precious metals. By diversifying your retirement portfolio with tangible assets like gold and silver, you can mitigate risks associated with paper-based investments and potentially enhance long-term wealth preservation.

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