Rollover 401k into Gold – An Overview
If you plan to rollover your 401k into gold, it’s important that you learn the different rules that need to be adhered to when you make this switch. It’s important that you know the rules so you specifically understand what you are about to get into. You need to understand the investment from all angles and knowing the rules will help you learn and understand more.
Ultimately, the main advantage that you will experience from a 401k rollover of this nature, is the tremendous tax benefits that it provides. All of the money earned in this account is tax-free. You literally get to keep 100% of the profits from your gold investments. Sounds like a fantastic way to earn retirement income to me.
Let’s now take a look at the different 401k rollover choices. This way you’ll understand the options a whole lot better…
A Direct 401k Rollover
This is a simple enough procedure to understand. You would take your existing retirement account balance and move it directly into a new account. The good thing about this approach is that you’ll be able to preserve all of the tax benefits being offered. That is obviously to your ultimate advantage.
The good thing is that your previous employer is not going to withhold any of the money in your account. You will not have to pay any additional income tax as well. It’s also a very simple way to complete a rollover transaction, which is definitely an additional benefit that you will appreciate.
Basically, it’s such a simple process because you only need to open up a new account and then fill out a few forms. That sounds simple and easy enough, right?
But it’s not your only option. Let’s take a look at the next…
An Indirect 401k Rollover
Here’s another way to close out and rollover your previous 401k account…
It’s very similar to the direct approach and if done right, you should be able to retain all of the same tax advantages and benefits that your previous retirement account provided.
Here’s the difference…
Instead of directly transferring the money from one account to another, the money from your old retirement account will be sent directly to you, in the form of a check.
You will then be responsible for depositing the check into your new individual retirement account, that is capable of purchasing physical precious metals. You have 60 days to perform this task without experiencing any penalties that all.
It’s important that you deposit this money and open up the new account within the 60 day timeframe. Otherwise it’s possible that your money will be subject to income taxes because you didn’t make the deposit within the specified period of time.
You may even have to pay an early distribution charge, if you do not deposit your funds within 60 days. So that’s another thing to keep in the back of your mind once you initiate this process.
Now I don’t want to scare you because there is help available if you need it. Here’s what you can do…
Contact a Gold Broker Right Away
It’s best to immediately contact a gold broker as soon as you decide that an indirect rollover is the way to go. The gold broker will be able to help you open up your new physical gold IRA account and they will deposit and purchase gold on your behalf.
You have the final say in all of the investment decisions, so the control is now in your hands.
If either of these methods seem appealing to you, then you should initiate this process as soon as possible, to take advantage of this hot commodity market.
To begin investing in precious metals, start by filling out the contact form on this page. You’ll receive a FREE investor’s kit and access to qualified precious metals brokers who are ready to answer any questions you may have.