Converting your 401 k into physical gold is one of the best ways to preserve wealth and protect from any potential downside risks that may come along in the future. Unfortunately, most people don’t even realize these gold IRA investments exist.

The good news is that many gold IRA companies are willing to help you take advantage of this opportunity. We’ll look at critical points to remember when converting your 401 k into gold IRA rollover – and how it can be done safely and securely.

If you’d like to jump right into a getting a free gold investing guide and accelerate your research into a conversation with a specialist, we’ve spent over 10 years researching this industry and have compiled a list of the top companies that can assist.  Click any link below to get a free precious metals investing kit and fortify your retirement plan today.


What Is a 401 K?

Convert Your 401k to Physical Gold

A 401 k is a retirement strategy that allows workers of certain companies to contribute money to their retirement.

The money you put into a 401 k is your employer’s contribution and is 100% tax-deductible. You also don’t pay taxes on the money you withdraw at retirement.

With a self-directed IRA, you have complete control over your investments, including the direction and timing of their growth.

Furthermore, you can save as much or as little as you want in your 401 k, keep your earnings, and make additional contributions as long as you’re under 59.5 years.

When you roll your 401 k into physical gold, you take control of your retirement savings. Moreover, you can even sell your gold investments at any time if you need to.

Another incentive to make the switch is that you can lower your overall cost of gold ownership through various options, like buying coins or bars in smaller quantities.

How to Convert Your 401 K to Physical Gold IRA

Taking control of your retirement savings and turning your 401 k into gold and silver is straightforward. All you have to do is find a qualified custodian, open a self-directed IRA, and make the deposit that will allow you to convert your 401 k to precious metals.

Once your self-directed IRA holding is eligible to be transferred to a certified custodian, you can transfer your existing 401 k assets to a gold-backed IRA.

To find a qualified custodian, read about different IRA custodians. When you’ve identified a qualified custodian, it’s time to open a self-directed gold IRA.

The two options you have when it comes to self-directed IRAs are a traditional IRA or a Roth IRA. A Roth IRA is a type of retirement account that allows you to contribute tax-free, but withdrawals are not tax-deductible.

Roth IRA can fund a self-directed gold IRA. It would be best if you financed a self-directed gold IRA through a Roth IRA for the most tax efficient.

What to Consider Before Choosing a Self-directed Custodian for Your Gold Precious Metals IRA

Before turning your existing 401 k into gold, you should consider your options and select a self-directed IRA custodian that best suits your needs. The most important thing to remember when choosing a self-directed IRA custodian is that you pick one that is qualified to hold your gold-backed assets.

You’ll want to search online to find a qualified custodian thoroughly. Moreover, consider the fees associated with opening your self-directed IRA and the custodian. The expenses should include the costs of turning your 401 k into gold.

If not, you should call the IRA custodian to find out the fees associated with opening an IRA and funding it with gold.

Additionally, you should ensure the self-directed IRA custodian you choose can store your gold bullion and other precious metals.

When you want to keep your physical precious metals in the hands of a qualified custodian, you’ll want to make sure the custodian you pick has a physical presence in the U.S. Suppose it doesn’t; you’ll want to find a different custodian.

Finally, you should also make sure the self-directed IRA custodian you choose has insurance to protect your assets in the unlikely event that something happens to the custodian. A qualified custodian should have a policy covering storing your gold coins.

Things to Know Before Choosing Physical Gold to Buy

There are a few things you should know before you decide which gold to buy:

  1. Weigh the cost of each particular gold item’s purity and its current market value.
  2. Ensure you have enough money in the account to buy whatever amount of gold you’re looking to acquire.
  3. Pick a certified gold coin or bullion dealer that’s legitimate and reliable.

To help you make these decisions, it’s a good idea to take some time to research the market and learn more about gold itself.

You can start by reading articles and watching videos on the topic. Moreover, you can also talk to a financial advisor or a gold broker to get their insight and advice on what type of gold to buy.

Before working with custodians, ensure that the gold IRA companies you work with are regulated by the SEC and Financial Industry Regulatory Authority (FINRA).

Ensure that they are trustworthy, professional, and legitimate. Also, take note of the company’s Gold IRA reviews and reputation online.

Look for negative reviews, Better Business Bureau reviews, and other online sources to get a feel for the reputation of the gold IRA company. Research every gold IRA company to ensure you’re doing the right thing with the right firm.

Benefits of Converting Your 401 K to Physical Gold

Gold is a financial asset used as money for thousands of years. When deciding whether or how to convert your 401 k into gold, it is essential to understand why you want to.

There are many benefits to investing in gold, especially as a long-term investment option. Gold has several advantages for a retirement investment, including:

  1. Lower cost of storage: The cost of storing gold and silver is much lower than keeping cash in banks. This process can save you a lot of money in the long run.
  2. No hassles with bankruptcy: If you decide to sell your gold, you won’t have to worry about reporting it to the IRS like you would with cash.
  3. Complete independence: Precious metals IRA is independent of any government or central bank. Gold is a safe investment because it can’t be destroyed or manipulated like paper money.
  4. Inflation protection: Investing in gold IRA rollover gives you inflation protection. Suppose governments start printing too much money. Gold loses purchasing power because it is a tangible asset.When you invest in gold, you are putting your money in a financial asset that will retain its value even if governments get too carried away with printing money.
  5. Asset security: Gold is a valuable asset that stores value over time. Investing in gold helps you provide for your future retirement, offering security for your retirement earnings, like a certain income.
  6. Low risk: Invest if you are looking for a low-risk way to grow your retirement savings. Many investments come with high risks, such as stocks and mutual funds, which may provide high rewards and a high risk of losing money. Investing in precious metals is a low-risk way to grow your retirement savings.
  7. Low investment: Investing in gold bullion is a low-cost way to grow your retirement savings. Gold is inexpensive, costing a few hundred dollars for a 1-kilogram bar. You can buy smaller amounts of gold than stocks and mutual funds with high investment costs.
  8. Privacy: Investing in gold provides you with privacy compared with a traditional 401 k account. Your employer may know that you have a gold IRA, but they do not know the specifics of your account.
  9. Localized option: Investing in gold provides a localized option, disassociating yourself from the dollar and the government.
  10. Tax advantages: Investing in gold can give you tax advantages, depending on the IRS’s treatment of your investment.
  11. Gold bugs: Investing in gold can allow you to become a gold bug and reap the benefits of the gold price increase.
  12. Gold stock market: Investing in gold can allow you to participate in the stock market with gold as a commodity hedge.

Risks of Converting Your 401 K to Gold

There are, of course, some risks associated with converting your existing 401 k to a gold IRA rollover. Some of the most dangerous risks of turning your current 401 k into gold involve the volatility related to the market and the inherent risks associated with buying coins and bars.

Risks of buying coins and bars include purchasing fake or counterfeit gold and buying gold that’s not real. If a coin or bar isn’t real, the value of that item in the future won’t be backed by actual gold bars. Instead, it will be supported by the value of the coin’s or bar’s metal content.

Like any investment, there are some disadvantages to investing in a gold IRA rollover. Gold bullion and precious metals can be expensive.

Suppose the price of gold and silver coins, as the Canadian Gold Maple Leaf rises; your investment will be worth more. However, a gold IRA account can become more affordable if the price drops.

Precious metals IRAs and gold investing is also an investment with significant risk. When you invest in gold IRAs, there is a high risk of losing some of your investment.

Once the price of gold drops, you could also lose money in precious metals IRA. This drop makes it an expensive investment option.

Tips to Successfully Sell Your Gold Investments in Future

If you turn your old 401 k into precious metals and gold and silver IRA, you’ll have to decide how to sell your precious metals investments in the future.

Ideally, you’ll want to sell your precious metals investments in the same manner as you bought them so that you can maximize your profits.

You’ll want to find a qualified buyer willing to pay you as much as possible on time. Also, consider selling your gold and silver on an online marketplace such as APMEX or JM Bullion.

APMEX offers a variety of venues to sell your gold bullion, so you can choose the method that works best for you.


When it comes down to it, any investment should be made to protect your wealth. Converting your old 401 k into a Gold IRA is a great way to do this for your individual retirement account.

There are many benefits to turning your current 401 k into a gold IRA, including the tax-free nature of the investment and the complete independence it provides.

The most significant risk associated with this strategy is the danger of buying counterfeit or fake gold. Furthermore, there are many ways to protect yourself from the risks associated with buying counterfeit gold, including researching the market and conducting due diligence on the seller.


Can You Move 401 K to Gold Without Penalty?

If you have a traditional 401 k, you can withdraw your balance in one lump sum without a penalty. Moreover, you can then roll that money over into a gold IRA. You can move your entire 401 k balance to a gold IRA without penalty.

When you have a Roth 401 k, you can withdraw up to five years worth of contributions without penalty. Then, you can move that money over into a gold IRA.

Can I Take Physical Possession of Gold in My IRA?

Yes, you can physically possess the gold in your gold IRA at the end of your IRA term.

Why Should I Invest in Gold for My Retirement?

If you consider converting your 401 k into gold, there are plenty of reasons to do so. First and foremost, investing in gold is a safe way to protect your savings for retirement during turbulent financial times.

When the stock market crashes or interest rates rise, you can invest in precious metals and gold IRAs, which will retain their value.

Gold provides a valuable hedge against the risks faced by the stock market and mutual funds and is a rare, finite resource that could become even rarer in the future. It is also a form of insurance against inflation, and governments typically face economic risks.

Finally, when you buy gold for your individual retirement account, it can help you meet your financial goals while saving money.

As we briefly discussed above, gold is a valuable financial asset with various benefits. Gold is a safe asset to store value and provide for your retirement. It is a physical asset that cannot be taken away from you during bankruptcy or other financial disasters.

Moreover, gold is a rare and finite resource, making it a rare and limited commodity that could become even rarer in the future. It’s an excellent investment to buy gold and precious metals from gold IRA companies.

Tim Schmidt


Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He's also a published author, and his views on investing have been featured in USA Today, Tech Times, The Huffington Post, Nasdaq, and many more.