How to Create or Rollover to a 401k Gold Account

401k Gold Account - A person who wants to open a 401(K) account will find that there are numerous investment options that can be placed in such an account. A traditional account may contain stocks, bonds, mutual funds and/or other investments. However, those who want to invest in precious metals such as gold will usually need to open a self directed IRA account that allows for investments of this nature.

Creating or rolling over to a gold IRA account takes research, time and hard work. However, it is well worth the trouble and expense, which is why many well known investors are buying millions or even billions of dollars worth of gold.

401k Gold Account: Rollover 401k to Gold – The Benefits

The main benefit of investing in gold is that gold has intrinsic value. Unlike paper currencies, gold will never lose its value. This means that a person who invests in a gold 401k account will be able to count on having money come retirement.

The price of gold has been steadily rising over the last decade. While the value of this precious metal has gone up and down over the years, gold has continued to rise in value as the world economy faces serious challenging and dips. Many experts predict that gold will continue to rise in value as the years go by.

Investing in gold will also allow a person to diversify his or her portfolio. Risky investments have a higher profit potential than safe investments, while safe investments can be counted on to provide a steady, albeit small, stream of profit. Gold is one of the few investment options that are not based on the U.S. dollar, making it an ideal purchase for those who want to maintain a safe 401(k) account.

401k Gold Account: How to Create or Rollover

Creating a gold 401k account is relatively easy. A person just needs to find a custodian for the account, select an authorized dealer to purchase gold from, purchase the gold and then have it stored in the account. Rolling over an account, on the other hand, is a bit more complex but it can be done. A person who wishes to rollover a traditional 401(k) account into a precious metals account should find a professional who knows how to rollover the funds without actually withdrawing them from the account, as early withdrawals always incur heavy penalty fees.

401k Gold Account: Buying Gold

The IRS has laid down some rules regarding which forms of gold can be deposited in a Gold IRA account. A person can place gold bars, ingots or bullion coins in an IRA account, but these must be made from gold that has a purity level of 99.5%. Gold jewelry and collectible items cannot be placed in a 401(K). A person also cannot deposit any gold that has been purchased before the account was opened, because any gold put in an IRA account has to be purchased by the account custodian and then transported directly to the account.

Opening or converting to a gold 401k account is a very good idea. The price of gold and other precious metals have been steadily rising over the last decade and most investors predict that gold will be even more valuable in the future than it is today. Buying gold enables a person to diversify his or her investment portfolio and provides an individual with money to fall back on should the world economy take a sudden downturn. This precious metal has always been considered valuable and always will be.

References: IRA FAQs - Investments - Internal Revenue Service