Don’t you know that you have the option to convert your 401k account to Gold IRA? The very reason to convert it is that it enables you to hold precious metals such as gold and platinum. If you are planning to roll over your existing 401k to gold IRA, then this gold IRA rollover guide will surely be of help.
Rolling over 401k to gold IRA is done using these steps:
- Choose a self-directed IRA custodian
With a self-directed IRA custodian, you will be able to choose from additional investment choices that meet the rules set by the Internal Revenue Service. To be able to purchase these assets, you need to open an account with a custodian that enables you to hold gold, silver, and other precious metals, and the custodian will arrange storage. Under IRS ruling, you are not allowed to personally store precious metals held in IRA.
- Rollover eligible funds
After choosing a custodian and submitting all the necessary documents, you are now ready to roll over your funds from 401k. Contact your plan administrator and tell them about your intent to rollover your funds to a self-directed IRA. Make sure that you are going to put in a self-directed IRA within 60 days after receiving the receipt for the IRA to consider it tax-free.
- Within your gold IRA, you can now buy gold and other precious metals
When buying gold for IRA, it should be at least 99.5% pure or better yet check the gold listing approved by IRS. You can also buy non-collectible coins such as the gold American Eagle.
- Arrange shipment to depository approved by IRS
It will be the dealer who will ship the precious metal of choice to a custodian’s storage facility. Your role is to verify with the dealer and custodian that the items have arrived. Ask for a receipt.
- Check account statements on your holdings regularly – You should track the status of your investment regularly to know when to add more or find out if it is the best time to sell a portion of your portfolio.