How to Move Your 401(k) to Gold Without Penalty

Gold has been a highly valued, highly sought-after asset since the days of ancient civilizations.

Today is no different.

With inflation soaring, and purchasing power decreasing, many investors might wonder how to move a 401(k) into gold without penalty.

Read along and learn:

• The different types of 401(k)
• How to convert 401(k) into gold
• How a gold IRA works
• The benefits of a Gold IRA

Hopefully, you will see how easy it is to start protecting your investments with a Gold IRA.

What Is a 401(k)? 

Your 401(k) is an employer-sponsored retirement plan. You make planned payments into the account—which some employers match—and those funds are invested for your retirement. 

A 401(k) may be available as a traditional or Roth.

Traditional 401(k) plans allow for:

• Pre-tax contributions
• Penalty-free withdrawals at age 59 ½
• Max yearly individual contribution of $22,500, or $30,000 if 50 or older
• Withdrawals taxed as earned income 

Roth 401(k) plans allow for:

• After-tax contributions
• Penalty-free withdrawals at age 59 ½
• Max yearly individual contribution of $22,500, or $30,000 if 50 or older
• Tax-free withdrawals at 59 ½ 

Your employer may contribute to your 401(k) to a combined yearly maximum of $66,000, or $73,500 if you’re 50 or older.

What Is a Gold IRA? 

A Gold IRA is a self-directed individual retirement account. You choose which eligible products you want to own—and how much of it—in your self-directed plan. 

You can own physical assets in your self-directed plan, including:

• Gold and other approved precious metals
• Investment real estate
• Investment business (e.g., a laundromat)

You may also own paper-based assets—stocks, bonds, treasuries, exchange-traded funds (ETFs), certificates of deposit (CDs)—alongside your physical gold. 

You can open a Gold IRA several ways:

• Cash contribution
• Transfer from another IRA
• Rollover from an eligible 401(k)

What Are the Benefits of a Gold IRA Rollover? 

Rolling over an eligible 401(k) into a Gold IRA (or Silver IRA) has many benefits:

• You control your investments.
• You use already allocated investment funds for gold. 
• It is a hedge against inflation.
• You own a tangible asset as opposed to a paper asset.
• Gold will most likely never go to zero.
• Gold can preserve purchasing power.
• You can diversify your portfolio with an asset non-correlated to stock.
• Gold can be a safe-haven investment during geopolitical and economic turmoil.

Are There Any Penalties When I Transfer My 401(k) to Gold? 

If you are 59 ½ with a current 401(k) or have a 401(k) from a previous employer, there is no penalty to transfer a 401(k) to a Gold IRA. 

Your transfer is also tax-free. Funds typically go directly into your new account and are not considered a withdrawal. 

How to Roll 401(k) Funds Into a Gold IRA 

The first step of rolling 401(k) funds into a Gold IRA is to contact a trusted firm such as Advantage Gold. 

An Advantage Gold account executive will walk you through the process. 

Step by step, they will help you:

• Complete the Gold IRA application
• Roll over your eligible 401(k)
• Understand the eligible gold bars and coins
• Purchase your gold
• Ship your gold to your choice of depository

H2: Start a Gold IRA Rollover 

You have learned how to convert a 401(k) to gold without penalty and are ready for Gold IRA investing. 

It’s time to call the experts at Advantage Gold. 

Every day, the Advantage Gold team helps clients like you. We make the rollover and transfer process simple and stress-free. 

Take a moment and review some of the thousands of 5-star online reviews from our clients. You will quickly understand why Advantage Gold is the highest-rated precious metals firm. 

Click the link and tell us how to contact you, or call us today.