How to Transfer 401k to Gold IRA
Are your retirement savings at risk because they’re in a 401k?
The fact of the matter is that the security of 401ks is a thing of the past. Many people thought their savings were safe in a 401k only to lose it all during the recession. These unfortunate people are now working way past the retirement age just to make ends meet.
In addition to being vulnerable to various economic factors beyond your control, a 401k also has a few other disadvantages:
Administrative Costs – Providing a 401k is expensive for employers and they will typically pass on most of the costs to you through various fees.
Risky Investment Options – With a 401k you are typically provided with a variety of investment options. Unfortunately, these options are mostly financial assets which can be negatively affected by hyperinflation, the decline of the US dollar, and bad decisions made by the government.
Complex Tax Laws – When it comes to paying taxes on a 401k there are many complex laws to take into consideration. Any tax advantages you may have can easily be offset by penalties and fees you may not be aware of or simply can’t avoid.
Due to these disadvantages and others it is in your best interest to find safer, more secure retirement savings options such as a Gold IRA.
Why Transfer 401k to Gold IRA?
In addition to there being many drawbacks to having a 401k, there are many advantages to placing your savings into a Gold IRA. Here are a few of them:
Protection from Hyperinflation – Unlike most financial assets, gold is much more resistant to the ever present threat of hyperinflation as the government prints more and more money.
Increases in Value During Harsh Economic Times – While many financial and physical assets tend to lose value during economic downturns, gold has proven to do exactly the opposite.
Deferred Taxes – When you invest in gold you will typically have a tax deferred status on your assets until you make a withdrawal. In general the tax laws surrounding gold are much simpler than those of a 401k.
Transfer vs. Rollover
Before we go any further there is something very important about how to transfer 410k to Gold IRA that we need to discuss.
The best way to “transfer” 410k to Gold IRA is to actually do a rollover, instead of a transfer.
Let me explain the difference:
Transfer – This is when your assets are transferred directly from your previous custodian (the company managing your 401k) to your new custodian (the company managing your gold IRA). This is usually done via check.
Rollover – This is when your assets are transferred to you, then to your new custodian.
While a rollover may seem more complicated because it adds in an extra step, there are actually several advantages.
The main advantage, and the one you should be most concerned about, is the fact that when doing a rollover you won’t lose your tax deferred status on your assets.
This is very important because it can ensure you don’t get any hefty tax penalties that can eat up your savings.
However, when you transfer 401k to Gold IRA via rollover there are some tax regulations you should be aware of.
There are two main regulations when it comes to rollovers:
60 Day Window – You essentially have to perform the rollover within a 60 day timeframe once it is started.
12 Month Limit – You can only rollover the same assets once every 12 months.
To ensure that you follow all rules and regulations and avoid large tax penalties when doing a rollover, I would advise you to contact a gold custodian and let them handle it. They will make sure that everything goes smoothly and that you retain your tax deferred status.
If you’re considering transferring your 401k into a more secure gold IRA my most highly recommended gold custodian is Regal Assets.
Regal Assets is an official gold IRA company that specializes in helping you protect your savings and investments from various economic factors such as hyperinflation and the decline of the US dollar.
For a limited time Regal Assets is offering a FREE gold IRA rollover kit to help educate you on how you can quickly and easily transfer your 401k into a more secure gold IRA. Click Here for more information.