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How to Transfer Your 401(k) to Gold without Tax Penalty 

This little-known "tax loophole" can save thousands of dollars in your retirement account

  • By Cliff Anderson | 8 minute read

  • The owners of this website may be paid to recommend Goldco. The content on this website, including any positive reviews of Goldco and other reviews, may not be neutral or independent.

    Protect yourself from stock market crashes by adding precious metals to your portfolio (in the 3 steps below)

    You might be exploring new strategies for your retirement that will not incur additional taxes or penalties. Maybe you are frustrated with the lack of investment opportunities in your 401(k).

    In either case, one great option is to do a “401(k) to Self-directed gold IRA Rollover”.

    What is a 401(k) to Self-Directed Gold IRA Rollover?

    With a gold IRA rollover, you can transfer all or part of your 401(k) into a self-directed gold IRA without incurring additional taxes or penalties — avoiding any taxes that normally occur when you withdraw funds from your 401(k).

    In most cases, if you are under the age of 59 1/2 any funds withdrawn from your 401(k) will be taxed at your normal tax rate. On top of that, you will also face a 10% penalty on those same funds.


    However, intelligent investors use the little-known gold IRA rollover strategy to avoid any tax consequence or early withdrawal penalties.


    There are complex IRS guidelines that need to be followed when doing a rollover, or a taxable event will be triggered. It is recommended to use a gold IRA expert like Goldco to assist with your rollover process. 


    (Editor’s note: We found that Goldco is very knowledgeable and offers best-in-class customer service for both newbies and experienced investors — Goldco will even send you a free investor kit if you follow this link.)


    Before we go even further, let’s go over the benefits of a gold IRA.

    Benefits of a Self-Directed Gold IRA

    A self-directed IRA is a retirement account that allows you to invest in assets that aren’t available in most traditional retirement accounts with the SAME tax advantages of a traditional IRA retirement account. 

    The phrase “self-directed” is a fancy way of saying that you have more control of where or what you invest your money in. This includes assets such as gold, silver, and other precious metals. 

    Building on that, a self-directed gold IRA (or “gold IRA” for short) is basically a type of self-directed IRA that focuses on precious metals such as gold bullion bars and coins.

    With a gold IRA, you can expand your investing strategy beyond the stocks and mutual funds found in conventional retirement accounts. By investing in precious metals, you can hedge against sudden fluctuations in the stock market and protect your retirement nest egg. 

    Note: You must use a custodian or trustee that administers the account, which is covered below. 

    3 Steps to Transfer 401(k) to Gold with a Gold IRA 

    • 1. Choose a Qualified Self-Directed Gold IRA Custodian

    • 2. Fund a Self-Directed Gold IRA with your 401(k)

    • 3. Select Your Precious Metals

    1. Choose a Qualified Self-Directed Gold IRA Custodian

    Per IRS guidelines, gold IRA assets need to be stored with a custodian.

    Precious metals experts, like those at Goldco, will help you find a reliable custodian with a high level of expertise in gold IRA investing to ensure your investments are secure.

    2. Fund a Self-Directed Gold IRA with your 401(k)

    You’ll first need to liquidate the assets in your current 401(k), then roll them over into your new gold IRA. The rollover process is complicated, and a gold IRA specialist will ensure that the rollover follows all IRS guidelines to avoid any tax consequences.

    3. Select Your Precious Metals

    Now that your self-directed gold IRA is created and funded, you can select the gold coins or bars that you want to invest in. Be sure to check that the gold you chose is eligible for investment under IRS codes.

    If you are not sure, the gold IRA experts at Goldco can answer any question you have about eligible gold coins.


    Summary: Top 3 Benefits of a Gold IRA

    Here is a quick summary of how you can benefit from a gold IRA:

    Enjoy the same tax advantages of conventional retirement accounts

    Ability to invest in assets such as gold, silver, and precious metals that are NOT available in your 401(k) or traditional IRAs

    Allows you to diversify your portfolio to protect against sudden market fluctuations

    How to get your Free 2022 Gold IRA Kit

    Step 1: Follow this link to your free kit offer

    Step 2: Fill out the form and the kit will be shipped to you at no cost

    Get Your Free Kit Now and Protect Your Retirement Savings

    Click the button below and order your free kit today before something bad happens to you our your family.

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