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Many investors have begun developing an interest in rolling over portions of their 401k into gold IRAs; this may help protect you from many of the economic uncertainties in the financially turbulent world we live in.. The gold individual Retirement Account (IRA) is a unique type of IRA that allows investors to add gold, silver, platinum, and palladium to their retirement investment portfolio. The gold IRA is fast becoming an option for most investors because of its several benefits.

In times of economic downturns and high inflation rates, actual physical gold and other precious metals have traditionally performed well. Therefore it may help investors protect and diversify their retirement savings. As we stated, a self-directed gold IRA allows investors to invest in real gold. You cannot do that with the regular 401k retirement account.


The popularity of gold IRAs is increasing for several reasons. First, a gold IRA allows you to hold precious physical metals as investments in your retirement portfolio. For instance, gold, silver, platinum, palladium bullion, coin, rounds, and bars. Real gold investments can effectively diversify your portfolio containing paper assets, including bonds and stocks.

In 2022, a report from Bank of America showed that the regular 60/40 portfolio (i.e., 60% stocks and 40% bonds) faced the most terrible return in more than a hundred years. This report has made many investors consider rolling over portions of their 401k plans into precious metals IRAs.

Secondly, gold and silver metals have helped investors hedge their funds from deflation and inflation over the years. This second reason is a vital consideration seeing that the inflation rate today in the United States is at its worst in the last 40 years.

Thirdly, gold IRAs allow investors to enjoy tax advantages. They offer investors a great way to reduce their tax liabilities on investments in their retirement accounts.

One easy way to start your IRA is to roll over money from your existing retirement account like 401 k, TSP, 403b, etc. All you need to do is carefully follow the Internal Revenue Service (IRS) regulations. You can transfer funds from your 401k, 403b, or TSP into your gold IRA without incurring tax penalties.

You can read on to see the IRS gold IRA rules and the professional precious metals IRA companies that can take care of all the necessary paperwork and processes.

This article will show you how you can transfer funds from a self-directed 401k into gold without Incurring tax penalties. In addition, we will provide you with reputable gold IRA companies through which you can set up your IRA and manage your account.

Bidens attack on gold IRa TAx rules

What is a Gold IRA?

Before investing in a gold IRA, it is ideal first to understand what it is. A gold and silver IRA is a common term for any IRA holding physical precious metal investments. Hence the IRA can hold gold and other precious metals. It can also be called silver IRA, palladium IRA, or platinum IRA.

A precious metal self-directed IRA is a self-directed IRA (SDIRA) type. It means that you choose the investments you want to add to your account, unlike the 401 k, where your plan administrator is in charge of your Exchange Traded Fund (ETF) or mutual funds.

Furthermore, SDIRAs can either be Traditional or Roth gold IRAs. A traditional gold IRA offers pre-tax contributions, while a Roth gold IRA offers post-tax contributions.

Is Gold a Good Investment?

Many more investors are switching to precious metals (gold and silver) as an investment “safe haven” because of the rising inflation rates and economic issues. Gold has, over the years, established itself as a trusted store of value and a financial asset that tries to keep up with the inflation pace.

One of the maxims about gold that investors often repeat is that one ounce can purchase for you a proper, tailor-made suit at any time. This statement was true when an ounce of gold was $35, and it is still true today that gold costs around $1,500 to $2,000 per ounce. Some people even argue that you can purchase two nice tailor-made suits for that amount, showing that gold's purchasing power has increased over the years.

Many fiat monies have come and left the financial scene in the last 100 years, some have eventually become worthless, and others are on their way to becoming worthless because of the stock market crashes and economic issues. However, the same stock market crashes and economic problems have strengthened the value of gold over the years.

The truth is that just like some investment assets, the gold price has also experienced some fluctuations over the years. However, it has still maintained its value because it is always a valuable precious metal.

Gold, silver, and other precious metal investments can aid you in totally diversifying your investment portfolio because the movements of the gold and silver prices do not correlate strongly with the overall costs of stocks. That means the value and prices of gold investments may rise when stock investments fall. Hence, properly diversifying your investment portfolio is an ideal strategy to help you reduce volatility and risks.

The Benefits of Owning Physical Gold

You can invest in gold, silver, and other precious metals in many ways. These include;

  • Gold stocks
  • Collectible coins
  • Gold Exchange Traded Funds (ETFs)
  • Gold mutual funds

Investing in physical gold will provide you with unique benefits over gold paper asset investments like stocks, mutual funds, and ETFs.

Let’s examine some of the key benefits of investing in physical gold;

  • Financial security today is under the immense threat of online hackers, cyber and identity thefts. Physical gold investments provide absolute financial security because no one can hack or steal it online.
  • You can anonymously hold physical gold investments. Today, when many investors are bothered about the government exercising power and intruding into their investments, investing in physical gold assets offers privacy. The sad truth is that the government can confiscate all the money in your bank account. We saw this scenario in Cyprus in 2013. In response to the country's economic problems, the government seized millions of dollars from its citizens through its central bank without informing them.
  • In addition, you will enjoy protection against government involvement and seizure when you invest in gold. Gold is protected more than physical cash from attachment and seizure by creditors. This benefit has made gold and silver bullion investments appealing to many interested investors.
  • There is no counterparty risk attached to physical gold investments. When you invest in paper assets like stocks, you face the risk of their performances being dependent on third parties like the firms’ management board. However, the intrinsic value for physical gold remains constant no matter what other parties do. It means that the value of your physical gold investments is not influenced by the performance of people, e.g., fund managers.
  • Physical precious metals (gold, silver, platinum, and palladium) held in a gold and silver IRA will grant the considerable tax advantages that come with other IRAs. Traditional IRA contributions will reduce investors' taxable incomes for the year, and the profits from their investments will be tax-deferred until they start withdrawing from their IRAs. Those who invest in a Roth gold IRA withdraw all their earnings tax-free. In addition, if you have physical gold in your gold and silver IRA, you can sell them in due time without bringing up any event for taxable capital gains.

Types of Retirement Accounts That You Can Hold Precious Metals In

Various types of gold and silver IRAs offer different benefits to gold investors. The three types of gold and silver IRAs that exist are;

Traditional Gold IRA

The traditional gold IRA is the most popular type. In contributing money to this gold IRA, you can deduct the amount from your income during your tax filing. The traditional IRA will reduce the taxes in your contribution year. However, during withdrawals from this gold IRA account, you will pay income tax on the amount you withdraw.

Roth Gold IRA

The reverse of the traditional IRA is the Roth gold IRA. You will pay your taxes when contributing funds to your Roth gold IRA. However, when you have contributed, your money will keep growing tax-free. Hence, you will not be required to pay any taxes when withdrawing your funds. In addition, while other IRAs restrict contribution withdrawals, Roth IRAs do not.


This type of IRA is for small businesses and the self-employed. It is like the traditional gold IRA, but now, SEP IRAs allow business owners to contribute to themselves and their employees this time.

rred. There will be tax liability once you begin funds withdrawals from your account.

tax compliant Gold IRA

Why Should You Consider a Roth IRA for Your Gold Investing?

You can choose one of the different IRAs we have explained above when you want to roll over your 401k into a gold IRA. You can select from the;

  • Traditional gold IRA
  • SEP (Simplified Employee Pension) gold IRA
  • Roth gold IRA

The kind of self-directed IRA that is best for you depends on your financial circumstances, needs, and goals. For instance, if your tax bracket is not what you want when you retire, you can open a traditional gold IRA to get into a lower tax bracket at retirement.

On the other hand, if you think that your tax bracket when you retire will be higher, then you may want to consider a Roth IRA because your capital gains will accumulate tax free in this IRA.

While a traditional gold IRA is tax deductible, a Roth gold IRA is not. Hence, you will not get any tax benefits when making your contributions. Nevertheless, this disadvantage is more than the considerable tax benefits you will get from having all your Roth IRA capital gains grow tax-free. Remember, you must wait 5 years before withdrawing to enjoy this tax-free capital gains benefit.

How to Perform a 401 k Rollover to a gold IRA

A gold and silver IRA rollover refers to funding your gold IRA by transferring money from your existing regular retirement account like 401k, 403b, and so on. It means rolling over funds from one IRA to another IRA. This rollover is necessary because the gold and silver IRA is a unique type of IRA. It is unique because the IRS sets the setup and management rules and the kind of investment you can hold in the IRA.

The 401k is a savings plan sponsored by your employer. It provides employees with a comfortable way to save and invest for retirement. The 401k allows employees to select a portion of their paychecks that the employer withholds for depositing in the 401k accounts. This retirement plan also has tax benefits; the monies invested in your 401k will grow tax-defe

Why Move Money from Your 401 k?

Some investors see transferring some of their financial assets from their 401k account as ideal because a gold and silver IRA presents people with many investment choices and flexibility.

For 401k plans, people can only choose mutual funds or Guaranteed Investment Contracts (GIC). GICs are money market accounts that give investors little interest in their investments. Part of the investment options in a 401k is to provide a choice of investments that low-risk-tolerant investors can accept. These low-risk tolerant investors are usually comfortable investing their monies in low-risk mutual funds like index funds.

Hence, a 401k investment plan may be the best for you if you are a very-low risk-tolerant investor. However, being a low-risk tolerant investor will not help you make the kind of significant returns on investments (ROI) that you deserve.

Usually, withdrawing your fund from a 401k, traditional IRA, or other retirement accounts with tax advantage will require you to pay taxes and possibly tax penalties during withdrawals before time. There will be no taxable events if you roll over your funds from a 401k into an eligible tax advantage retirement account within 60 days.

Major IRS Regulations and Penalties You Need to Know

  • It would be best if you did not exceed your annual contribution limit. If you do, you will pay a 6% tax penalty.
  • You must open and manage your gold and silver IRA account through an IRS-approved custodian.
  • The IRS stipulated contribution limit for 2023 is $6,500. Those from 50 years and above can add $1,000 to their annual limit to make it $7,500.
  • You can make new gold purchases to add to your portfolio, but you cannot sell the ones in your account until you reach 59.5 years. Any withdrawal before then will attract a 10% withdrawal penalty.
  • You cannot invest in rare coins and collectibles. The IRS tags collectibles as taking immediate distributions from your IRA account. They see the distribution amount as the price of the collectibles you invest in. Hence investing in collectibles will attract a withdrawal penalty.
  • Always seek the advice of a precious metal IRA specialist to ensure you follow the rules strictly.
  • You must complete your rollover within a 60-day timeframe. Failure to do that may incur a 10% tax penalty.

Types of Gold IRA Rollover

You can rollover funds from your 401k to a gold IRA in two ways:

  • Trustee to Trustee (Direct Rollover)
  • Client to Trustee (Indirect Rollover)

Trustee to Trustee or Direct Rollover

A direct rollover is the easiest way to roll over funds from your 401k to a new gold IRA. After you have set up your gold IRA account, you need to contact your 401k account trustee or plan administrator and then tell them to transfer the amount of money you want to deposit in your gold and silver IRA to your IRA trustee.

Note: Part of setting up your gold IRA is getting a trustee to handle all the necessary paperwork. This trustee will give you all the needed information that you will provide for your 401k administrator to facilitate the money transfer.

You will get an IRS Form 1099-R noting the 401k withdrawal or transfer. However, box 7 of the form should contain an “H” distribution code. The code informs the IRS that the rollover is not taxable. Hence, the regular 20% tax rule for withholding funds will not apply in this rollover. You will not incur any tax on the funds you are rolling over to your gold and silver IRA.

Client to Trustee or Indirect Rollover

This rollover allows the 401k plan administrator to give you a check containing the amount you want to invest in your gold and silver IRA from your 401 k. Then you will have to deposit the money to your new gold IRA within the IRS 60 days limit. The 60 days count begins from the withdrawal date indicated in the 401k check. Exceeding the 60 days limit will make the money you want to deposit taxable and possibly incur tax penalties.

This rollover method is more complicated because your 401 k trustee will send you a check containing 80% of the money you want to deposit in your gold and silver IRA. Then it will send the remaining 20% to the IRS to take care of possible tax liability issues. Your plan administrator will give you an IRS Form 1099-R that indicates the funds amount it disbursed to you and the 20% it sent to the IRS for tax purposes.

You can avoid tax liability by entirely depositing the allocated funds into your gold and silver IRA, not just the 80% allocated to you. You can add up the remaining 20% from your pocket and deposit the money within 60 days. The 20% will be returned to you after your tax filing for that year. Remember, ensure the deposit occurs within 60 days, and you strictly follow the IRS regulations for a gold IRA.

The indirect rollover does not help people who do not have the 20% to add to the 80% from their pockets. Hence, the 80/20 rule and the inconveniences prompt investors to choose the direct or trustee-to-trustee rollover.

Rollover Eligibility

Generally, you can roll over funds from your 401k to your gold IRA. Nevertheless, the rollover requirement and eligibility can differ depending on your plan. Hence, please check your eligibility status and requirement with your 401 k plan administrator before beginning the rollover process. All you need to do is tell your administrator that you want to roll over funds from your 401k to your gold IRA, and they will tell you what your plan can allow and the rules or steps you must follow to do the rollover.

If you are 59.5 years and above, or at least 55 years and no longer work for your 401 k plan employer, you will not have issues transferring your funds from your 401k to your gold IRA. However, if you are below 55 or are still working with the employer who set up your 401k plan, you might incur a tax penalty while trying to get an “in-service withdrawal.” If your rollover eligibility status is affected by the fact that you are 54 or still work for your employee, then you have to wait until you are 55 years old or quit your job with your current employee. Alternatively, you can open your gold and silver IRA through a custodian and fund it from another source.

Even if you are not allowed to withdraw or transfer funds from your 401k plan while working with the employer that opened your 401k, you may still execute your funds' transfer. Many 401k plans have an exemption for withdrawal called "hardship withdrawal." This exemption allows your 401k plan admin to disburse funds to you, provided your administrator wants to help you. However, bear in mind that granting this exemption is solely the choice of your 401k plan administrator.

What If I Miss the 60-day Rollover Deadline?

You must meet some requirements to successfully rollover funds from your 401k to a gold IRA. We will talk about them in subsequent sections of the article. However, there is an essential requirement that you must satisfy to evade tax penalties. This requirement is the 60-day rollover time frame. Once you get minimum distributions from your 401k to roll over to your gold and silver IRA, you have a 60-day limit to ensure that the money is deposited into your new gold IRA. If you fail to deposit the money within 60 days, you may have to pay an extra 10% tax for late rollover. There are cases where the IRS can waive the 10% penalty for you, but it has to be under consideration that you missed the rollover deadline because of circumstances beyond your control.

How to Set up Your Gold IRA Account

The gold IRA account setup process is straightforward. The first and most important decision is choosing the best gold and silver IRA company to work with. Several specialized IRA firms can set up your gold and silver IRA for you. All IRA companies cannot do that because a gold and silver IRA is a unique self-directed IRA.

The only IRA companies that can set up your accounts are Gold IRA companies or trustees. You must also know that these companies may differ in their operations even though they can set up your gold and silver IRA for you. Hence, when choosing a trustee to work with, there are some factors that you must consider. Only companies with the best of these factors should handle your gold and silver IRA setup and management.

  • Costs and fees.
  • Minimum first-time investment for investors.
  • Shipping - does the company charge to ship your gold investments to your preferred secure depository? When you withdraw your assets, will they ship your precious metals to you? If they will, how much do they charge for the service?
  • Provision of access to precious metals market information and education.
  • Customer care service.

Here are the steps for setting up your gold IRA

Step 1- Select a Gold IRA Custodian Trustee

The first thing any serious investor wants to do is to select the best gold IRA provider or custodian for an account setup.

Apart from the things you should look out for in a gold and silver IRA company, as mentioned above, you should also consider other things like how good you are with investing and how ready you are to be in charge of your retirement account and the investments in it.

As part of the setup process, you must decide whether you want to open a traditional IRA or a Roth IRA. We have looked at these IRA types in an earlier section of this article.

Who is a Gold IRA Custodian Trustee?

A precious metal IRA trustee is a custodian that provides self-directed gold backed IRA service to interested investors. This IRA allows people to hold physical precious metals as alternative investments. These physical precious metals are IRA-eligible gold, silver, platinum, palladium bullion, coins, bars, and rounds.

Our #1 IRS 401k to Gold Company Recommendation

augusta Precious Metals

Augusta Precious Metals is our best rated overall precious metals company

  • August will Help ensure your 401k part or whole is rolled over into a Gold or precious Metals IRA without incurring a penalty
  • Customer care is exceptional
  • Pricing is highly competitive
  • Educational program second to none
  • The best FREE investment guide in the industry
  • Zero complaints on BBB & BCA
  • Free shipping on all orders
  • They have a team of experts to guide you through your transfer from your 401k in to a Gold IRA
401k gold free gold


Goldco is one of the most popular gold IRA providers for gold and silver investors. It is one of the world's first 10 gold and silver IRA dealers and has sold gold and silver IRA products and services for 17 years (since 2006).

Goldco has a simple approach to establishing gold IRAs for its customers. It also has friendly and knowledgeable customer care professionals that you can reach anytime. With Goldco, investors need to put money in their newly opened self-directed gold IRAs after signing contracts to complete their purchase. Investors can also accomplish this process through a 401k rollover.

The company’s website displays many reviews and positive comments from real customers. It has an A+ rating with BBB, which adds to its outstanding reputation.

Goldco has excellent customer service that attends to all the questions of potential investors and customers. It has an online chat option that you can access every day of the week, and through this channel, you get to meet specialists in the company.

The company has a section on its website that caters to the educational needs of visitors and customers. The section contains precious metals investing videos and articles that can help investors make the best investment decisions.

Goldco’s website has a unique feature that allows you to customize its visual components and typefaces. Goldco is that company that goes all out to ensure that it gives you a pleasant experience while shopping from and surfing its online platform

Pros and Cons In Using Goldco for Your 401k Gold Rollover

Goldco provides clear details of all its prices on its website.
They will give you up to 10% of your investments in precious metal products as a welcome gift.
Goldco has years of expertise, and it has determined its success and dependability in the industry.
They have a wide range of gold and silver IRA and non-IRA-eligible precious metal products.
They offer low structured fees and annual charges for your account protection.
Their team of specialists will help you tranfer money from your 401k 403b or 457b plan into a precious metals iRA
Precious Metal IRA activation fees are a little higher than some other providers in this market.
The structure of gold and silver storage fees might not suit every investor.

Our #2 IRS 401k to Gold Company Recommendation

Goldco complaint

Goldco is our second top-rated gold and precious metal company. Having been top-rated all of last year, they were very close to Augusta Precious metals

  • Great promotional offers
  • Pricing is highly competitive
  • Educational program second to none
  • FREE investment guide in the industry
  • High buyback prices
  • Expert guidance provided by the team
  • First years fees waivered for new customers

American Hartford Gold

Some investors prefer to do business with enterprises run by families. American Hartford Gold is for you if you are such an investor. The company is known in the United States for its commitment to the long-term financial security and stability of loved ones. American Hartford Gold has ranked as one of the top-rated gold and silver IRA companies in the United States for 7 years. Although the company is relatively new, it has succeeded in growing its customer base and increasing its trust factor.

The company's headquarters is in Woodland Hills and Los Angeles, CA. The company has delivered precious metal items worth $500 million, and despite that, it still pays attention to assisting customers who want to diversify and safeguard their gold and silver investments.

Apart from rolling over your 401k to gold and selling precious metals assets, American Hartford Gold can also deliver your precious metals to your doorstep. The company has partnered with the renowned Delaware Depository to store its clients' precious metals investments.

Many customers trust American Hartford Gold because it provides up-to-date information about gold and other precious metal products. In addition, it offers a round-the-clock customer support service through its website. Hence, you can access important information quickly through the company's website.

The company has an amazing buyback program. If situations warrant you to sell your precious metal assets for some quick cash, American Hartford Gold is a sure bet for that. The company will buy your precious metals at the current market price.

Pros and Cons In Using American Hartford Gold for Your 401k Rollover

American Hartford gold  have positive customer feedback and 5-star ratings on trusted consumer rating sites.
You can sell your precious metals to them through their amazing buyback program
The initial deposit they charge for activating your IRA is small.
They offer upto$10,00 in free silver to qualifying customer opening an IRA.
They offer free and insured shipping.
Their team of specialists will help you transfer money from your 401k 403b or 457b plan into a precious metals IRA and they are available 24 hours a day.
They have more expensive annual account maintenance fees and expenses than Goldco and Augusta Precious Metals although this is reflected in the level of service delivered.
Their online catalog does not provide pricing information to customers. Hence, you must call their hotline to get their products’ prices.

Our #3 IRS 401k to Gold Company Recommendation

Hartford American

American Hartford Gold is our third top-rated company.

  • A leading, recognized, and trusted brand in the industry
  • A family owned and run business
  • Excellent customer service
  • Buy back guarantee
  • Free shipping
  • Promotional offers for new  customers
  • Transparent about the cost
  • Diligent when it comes to compliance


Frequently Asked Questions About Protecting your 401k

Can I Invest in Gold within My 401k Retirement Plan

You cannot directly invest in Gold within the majority of 401k plans to turn part or all of your 401k to Gold see this page

Can I rollover my 401k to a gold IRA?

Yes you can perform a 401k to gold IRA rollover see this page for more details

What Portion of My 401k Should I Roll Over into Gold or Other Precious Metals
We are often asked what portion of my 401k, 403b or 457b plan should I rollover into gold or precious metals. click this link to read our full article
How to Protect Your 401k From a Stock Market Crash

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