The 401k assists Americans in socking away money for retirement. The main reason it’s a popular retirement vehicle is because a portion of each paycheck can be deferred into a tax-sheltered account. The range of financial products the account can invest in spans from mutual funds to other options, but most employers have limits on the exact choices you can make, which really puts a limit from a diversification standpoint on the traditional 401k.
Placing Precious Metals in Your 401k
Let’s say you left the employer where your 401k was started. The plan is still there, under their management, and really out of your control. To regain control, and have a say in your future, you can roll over the assets to what’s called a roll over IRA. From there, you can use this account to buy American gold coins.
(Note: If you are still employed by the company, it’s probably difficult to use this strategy. However, most people who are looking for 401k to gold ira conversions are doing this research because they have moved on and now work elsewhere.)
The gold backed IRA plan is becoming very popular, and gold ira companies exist to help assist with every step. I’ve done extensive research in this space and the gold ira company reviews I’ve written are extremely thorough.
Upon rolling over your 401k into a self-directed IRA, buying gold can take place without penalties or taxes.
My views on gold as an investment are well-chronicled on this website, but I’m not the only one who thinks this way. Ron Paul’s views on gold are also summed up and have been right on the money dating back to the late 1970’s. Thirty years after his report on gold was written, it’s still the most respected document written as an argument to use gold as currency.
Converting 401k to Gold is Easy!
Using a reputable company makes this process easy. After checking out many companies in this space, I recommend Regal Assets out of California, but you can use any company you are comfortable with. What they will help you do is exchange your current investments for precious metals.
Hopefully this answered some questions about the conversion process. Aside from 401k conversions, there is also a process you can follow to convert your ira to gold. I speak more about this on this page below: