When you leave a job, you have options for the funds in your 401(k): leave the money in your 401(k) plan, roll it over to a new 401(k) with your current employer, cash out of your 401(k) and have the funds sent directly to you, or roll over the funds to an IRA. Gold 401(k) rollovers can be complex, and most custodians process rollovers differently. Many times there can be lengthy paperwork and extensive processing timeframes, making a rollover seem daunting and frustrating. However, if you are prepared and know your options, the process will be much smoother.
Here are a few tips to ensure your IRA rollover process is hassle-free:
1. Make sure you qualify for a rollover.
There must be what is called a “qualifying event” for you to be able to roll over your 401(k) funds. Qualifying events include changing employers, having funds rolled over from a former 401(k) to your current 401(k), attaining the age 59.5, or retirement. If you are not sure whether you qualify or not, contact American Bullion and our retirement specialists will help determine whether you qualify.
2. Identify your 401(k) custodian.
Your custodian is the company that holds your funds, not the company you used to work for. Obtain a copy of your statement and either fax or email it to American Bullion. Our dedicated IRA Processing Department will handle the rollover to make sure everything is processed properly.
3. Know your options.
Familiarize yourself with the special tax and distribution notice. This is a document that the IRS requires you to see before you move any funds into or out of any qualified retirement plan. This document goes over all of your options as well as the tax consequences (or lack thereof) depending on what option you choose. Oftentimes this document is sent to you when you terminate employment with the employer that sponsors your 401(k).
4. Be prepared.
After you have set up your self-directed IRA and initiated your rollover through American Bullion, you will be getting a phone call from a representative in the IRA Processing Department. They will explain the process and answer any questions you may have.
5. Know the methods.
It’s important that you know the methods through which rollovers are processed. Most rollovers are processed in one of three ways: over the phone via a conference call, through rollover paperwork from either the custodian or plan administrator at your former employer, or some can be requested online. All 401(k) plans are different – rules and restrictions may apply.
Have Any Questions? Talk with an American Bullion Expert Today.
American Bullion is a nationally-listed precious metals dealer that specializes in gold retirement accounts. We help clients roll over or transfer funds to a precious metals IRA, whether it’s a Gold IRA, Silver IRA, or other precious metals. We pride ourselves in providing a tax-free and hassle-free rollover process along with a comfortable atmosphere for clients to buy gold. For more information, speak with one of our knowledgeable precious metals experts today at 1-800-326-9598.