Friday, May 24, 2024

How to Convert 401k to Physical Gold

Do you have a 401(k) account? Are you thinking of how to diversify that account? Do you want to diversify into aurum bullion? Are you wondering how you can convert your 401(k) plan to physical gold? If your answers to all these questions are yes, then you are in the right place.

In this article, we will show you how to convert 401k to physical gold. We will do this using the Metal-res convert 401k to physical gold guide which is a simple guide that can be easily understood by even those who don’t know what 401k plans are.

Therefore, without further ado, let’s get the ball rolling…

Rollover Eligibility

Speaking of rolling, the way you can convert a 401(k) to physical aurum is to roll over the eligible funds within that account. Hence, you need to find out how much funds within your account can be rolled over. You can ask your account manager to inform you if you don’t know.

You should also find out if your retirement plan can be rolled over. This is important because not all of these plans are qualified for such diverse investments. Hence, if you are yet to have a 401(k) plan, you should find out if you will be able to carry out a rollover if you desire. This will save you from being stuck later on.

If your plan allows you to diversify your eligible funds into other investment opportunities, you still need to find out the rules about the account from your employer. Some accounts will only allow you to make a withdrawal except you quit the job, get disabled, retire, or terminate the plan.

Hence, if your plan doesn’t allow this form of investment diversification or you don’t have enough rollover funds, you cannot convert the 401(k) into physical gold. However, a withdrawal can still be made, but you will have to pay penalties and taxes on it.

Convert 401k to Physical Gold

Are Self-Directed IRAs Eligible for Rollover?

Another type of retirement plan that is popular these days is a self-directed individual retirement account (IRA). You can visit to find out if IRAs are better than 401k.

When it comes to IRAs, a lot of custodians will only allow you to buy traditional investments. However, a self-directed account trustee enables you to choose other forms of investments provided that they meet the rules set by the Internal Revenue Service (IRS).

Therefore, you can invest in gold bullion amongst others. When you buy the commodity via a company (custodian), the custodian will then keep possession of the aurum you bought. This is in line with the guidelines of the IRS that doesn’t allow the owner of such an account to keep their commodities themselves.

Rolling Over your Eligible Funds

Once you have confirmed that you have sufficient funds in your retirement plan that can be rolled over, what you need to do is contact your administrator first. Inform them of your intention to roll over some money. When you inform them, paperwork will be sent to you to fill to begin the process.

After this, the money has to be sent to an IRA account. This money will not be charged tax provided it doesn’t stay in that account beyond 60 days.

Purchasing the Gold

After the money has settled in the self-directed IRA account, then it is time to buy the gold. The gold you purchase must have a minimum purity of 99.5%. This is important because the IRS also sets the purity level that can be accepted. If it doesn’t meet this requirement, the aurum won’t be accepted.

Also, you should be careful of the type of gold coins or bars you buy since not all are acceptable. Examples that are readily accepted are Maple Leaf and American Eagle. Click here to find out the gold products. Informing your dealer of the purpose why you are purchasing the aurum will enable them to give you the acceptable type of gold coins or bars.

After an agreement is reached, ask your custodian to send the money from your self-directed IRA. Once the money is received, the dealer will send the gold to a depository of your choice.


In the article above, we have given you a simple yet detailed guide on how to convert your 401(k) into physical gold.

Lindsey Ertz
Lindsey Ertz
Lindsey, a curious soul from NY, is a technical, business writer, and journalist. Her passion lies in crafting well-researched, data-driven content that delivers authentic information to global audiences, fostering curiosity and inspiration.

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