What is a Gold 401(k)?
Many investors looking for information on purchasing gold and other precious metals ask: What is a Gold 401(k)? Technically, there is no such thing as a Gold 401(k) – what they are probably looking for is a Gold IRA. A Gold IRA is just like any other IRA, only instead of holding just paper assets it is also able to hold physical gold coins and bars. If you have a 401(k) from a previous or current employer, all you need to do is request a rollover of your funds to a new Gold IRA. It’s a tax-free process and can usually be taken care of with one simple phone call to your current custodian. Following that phone call, your current custodian should release those funds directly into your new Gold IRA.
Why Invest in Gold?
When new clients call into American Bullion, one of the first questions they tend to ask is “why should I invest in gold?” It’s a simple and honest question, but the reasons for investing in a Gold 401(k)/IRA could easily influence your financial future.
Gold Limits Exposure from Wall Street
Gold is a financial asset that does not depend on credit to function. Having physical ownership of precious metals lowers overall portfolio risk by diversifying assets away from paper.
Gold Creates Protection for Your Portfolio
Gold is a tangible asset with a value that has no counter-party or credit risk. It has been a store of wealth for thousands of years and has outlasted many of the world’s currencies. Lastly, it can be fully insured and stored in IRS-approved depositories throughout the United States.
The Dollar Doesn't Buy What It Used To
The Federal Reserve’s money supply has more than doubled since 2008, meaning the U.S. dollar has depreciated in value and now buys fewer goods and services than it did before. Gold, on the other hand, has steadily increased in value by over 300% since the year 2000. It is no surprise that physical gold has been turned to as a hedge against inflation and a safe haven from economic uncertainty for decades.
What Types of Gold Can Be Added to a Gold 401(k)/IRA?
If you’re looking to set up or add to a Gold 401(k)/IRA, American Bullion offers a diverse selection of precious metal bars and coins. However, only certain bars and coins meet IRS requirements for being added to a Gold IRA. When you’re choosing which bullion bars and coins to purchase, be sure to ask a gold specialist which products best fit your investment or collector needs.
Some of the most popular IRA permissible coins and bars available are:
- American Gold Eagle Coin
- Proof Gold American Eagle Coin
- Canadian Gold Maple Leaf Coin
- American Gold Buffalo Coin
- Austrian Philharmonic Gold Coin
- PAMP Suisse Gold Bar
For a full list of IRA permissible coins and bars, contact an American Bullion gold specialist at 1-800-326-9598.
Gold 401(k)/IRA FAQs
Most rollovers are completed within 10-15 business days. The process is dependent on your current 401(k) custodian and their procedures for releasing your funds.
There are no fees for the rollover itself. However, there are often closeout fees from previous custodians, minimal account setup fees, and maintenance fees for new Gold IRAs.
- Individuals can only do one rollover per plan, per year. Transfers are unlimited.
- Rollovers generally need to be a like-to-like transition. For example, a pre-tax 401(k) will need to be rolled over to a pre-tax (Traditional) IRA, and a post-tax 401(k) will need to be rolled over to a post-tax (Roth) IRA.
- While investors can begin a Gold IRA with as little as $200, American Bullion recommends a minimum rollover amount of $10,000 to account for any fees associated with the process. Each plan has its own specific rules set by the plan administrator. If needed, American Bullion will set up a conference call with your plan administrator to determine any specific plan rules.
- To qualify for a rollover, you must meet one of the following requirements: 1) you no longer work for the company that set up the plan, or 2) if currently employed by the company issuing the plan, you are of age 59 ½ or older.
Why Invest in a Gold 401(k)/IRA with American Bullion?
American Bullion is the expert in Gold IRAs and a nationally listed dealer of the United States Mint. We specialize in handling all details of the Gold IRA Rollover process with minimal effort required on the client’s part, as well as helping clients choose which precious metal bullion products best fit their needs. American Bullion carries all IRS-approved gold, silver, platinum and palladium bullion products. We are confident in our ability to make every transaction as safe, quick, and hassle-free as possible.
Request your Free Gold Guide
American Bullion offers a complimentary Gold Guide that will help educate you on gold ownership. It contains an easy to understand, informative overview of the benefits of investing in gold, including specific details about setting up a Gold IRA. The guide is completely free, and there is no obligation. If you’ve been looking for an opportunity to safeguard your nest egg for the future, then request your Free Gold Guide today by calling 1-800-326-9598 or filling out and submitting the form at the top of this page.