If you have a 401(k) account from your current or former employer, there are things you can do in order to help your funds grow even beyond their current limitations. Many people are finding out about the prospects of investing their retirement funds into gold. In order to take advantage of this exciting opportunity, you must follow the specific guidelines that have been created by the IRS. Doing so can help you transform your regular retirement account into a gold 401k. Going from 401k to gold can help you achieve more variety in your investment plan as you get closer to your senior years. With 401k gold investing, you can explore more dynamic opportunities to increase your wealth. Regal Assets can show you different ways of turning your 401(k) into gold.
Many investors have seen extreme volatility within the various investment markets during the last decade or so. A few years ago, thousands of retirement accounts were devastated with significant losses due to stock market crashes. Additionally, investors who had chosen to go into the real estate business, had seen even larger losses as the residential housing industry plummeted. Watching your nest egg disappear because of market conditions can be heartbreaking, and that is what many people close to retirement age went through recently.
While many people have suffered great losses within their retirement savings, you can help prevent big deficits in your account when the market fluctuates by making sure your investment strategy is varied. Choosing a variety of funds to put your money into can help prevent you from losing your retirement account when one market declines. One option that many investors should consider is gold. Using a gold 401k can help you create a diverse asset portfolio that is more resilient to changes going on within the economic markets.
Focusing your retirement money onto a gold 401k requires you to understand the list of IRS rules and regulations regarding physical assets and tax implications. After learning about the conditions, you must also calculate the cost of keeping your gold within an approved facility. Another thing to know is that a gold 401k cannot earn interest or dividends due to its unique place in the market. Once you’ve thought about these factors, then you may decide to go forward with this type of investment plan.
Retirement Accounts Overview
Options for retirement accounts include both a 401(k) and a 403(b) plan. Your job type and goals for saving dictate which type of retirement account may be right for you. You can convert these types of accounts to a gold 401k in many cases as well. Here are some details about each kind of plan.
Traditional 401(k) – Individuals open a 401(k) usually through their employer. Your employer then chooses an account administrator to manage the investment strategies for your money. With some of these types of accounts, both you and your employer can make yearly contributions. If you have money taken from your paycheck to fund your 401(k), it is not taxed. Once you get close to retirement age, you can begin to make withdrawals. Taking your money out early can result in stiff penalty payments.
Roth 401(k) – This type of 401(k) is similar to the traditional, as it is also set up through your place of work. The difference lies in the money you use to fund your account. With a Roth account, you contribute money that has already had taxes taken out. Because of this, you can access your funds much more easily.
403(b) plan – For a 403(b) plan, the big difference between it and a 401(k) is based on your type of work. People who work for non-profit organizations are eligible for a 403(b). Because of the association with non-profit groups, a 403(b) plan has lower fees than a traditional 401(k) account.
Unlike another type of retirement account, an Individual Retirement Account, or an IRA, you can contribute a larger amount of cash each year into these plans. Your individual contribution must be no more than $18,000 per year. When you combine your contributions with your employer’s additions, the limit must not go over $53,000 per year. No matter which type of annuity plan you choose, all can be converted to a more diverse gold 401k plan.
Making a Request
After you’ve decided that you want to go with a gold 401k, the first step is to make a request to your company that sponsors the account. In most cases, you must contact your employer’s human resources department in order to get the process started. You must get all of the details about your 401(k) or 403(b) account in order to see if it qualifies for gold purchasing. In most cases, these types of retirement plans do not allow you to buy assets such as gold or silver. Usually, you may be offered a stock or commodity plan in gold or silver instead of physical gold.
Rollover to an IRA
If you want to invest in actual gold, you must rollover your 401(k) or 403(b) into an IRA. A gold 401k plan requires this step due to IRS regulations. Typically, you must first open an IRA account, designate it as a self-directed plan, request the paperwork from your account administrator and then fill everything out. Once the process has been completed, your funds get transferred into your new IRA. At that point it becomes possible to start investing in precious metals, such as gold or silver.
When you are ready to go forward with a gold 401k, you have to select a storage facility to house your gold. Additionally, you must choose the type of gold you want to invest in. Gold buying options include gold bars and gold coins such as American Eagle, Canadian Maple Leaf, American Buffalo and South African Krugerand.
Choosing to invest a portion your 401(k) or 403(b) money into gold can help your retirement amount increase to its top potential. Regal Assets can provide expert guidance as you navigate the journey to a gold 401k. You can find out more about 401k gold investing online at the Regal Assets website. Turning your 401k to gold may be an exciting and lucrative opportunity to help you enjoy your best years.