How To Move 401K To Gold Without Penalty

Andrew C. McGuire

Disclaimer: I may receive affiliate commissions for recommending certain products or services, but this does not affect my opinion of them.  Please do your research before investing in any of the companies mentioned, as I have done my best to give you the top-rated companies I've researched.

I have conversations with people all the time about how to move their 401k into gold and the best way of doing that is a gold IRA or precious metals IRA. I don’t recommend just going to buy gold bullion and burying it in your backyard. The best way of moving your 401k to gold is by getting a gold IRA account setup with Augusta Precious Metals.

What penalties exist for moving my 401k to gold?

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If you’re thinking about moving your 401k to gold, make sure you understand the tax advantages of doing this before just deciding not to do it because of a penalty that may exist. I would also work with the gold IRA provider to really understand your options and the penalty for doing so. Traditionally the only 401k penalty is if you’re putting in too much money or you pull money out too early. If you’re younger than 59 1/2 you’ll see some penalties and I would always check with your tax advisor before making any changes to what you’re doing today.

Why doesn’t everyone move their 401k to gold?

I have always felt uncomfortable about moving my 401k into something else that isn’t the traditional advice from my financial advisor. It’s important to realize though that the financial advisory team you’re probably with is paid based on AUM (Assets Under Management) and the lower that goes the lower their paycheck goes.

The reason that everyone doesn’t move it is because of this reason. The traditional financial advice isn’t about putting your money into a gold IRA or other precious metals. The traditional retirement account advice is to just hold on through the bull and bear markets. The market always goes up over time is what you’ll hear. The thing that really freaks me out is what about those people trying to jump into retirement today or tomorrow – not 10-20 years from now.

For my retirement savings, I’m looking for safe alternative investment options that involve actual physical gold and gold investments.

The other reason many people don’t move their money into gold iras or a gold IRA rollover is because of fear, just like any other type of investment. Gold IRA investments are not guaranteed and just like any other index mutual funds or investment options that are not the traditional method – there are going to be risks. If you’re just looking for the safest investment, you can just hold onto cash but that has risks due to inflation and every year, each dollar is worth less and less.

What is a gold IRA?

It’s important to understand what a gold IRA is before you decide to move your retirement savings into one. A gold IRA is an individual retirement account that you can hold physical gold in. The benefit of doing a rollover from your 401k to a gold ira is that you’re not taxed on the money when it’s moved. You will be taxed though when you withdrawal the money in retirement. A gold IRA account must be held separately from a traditional account which is why companies like Augusta Precious Metals exist. They specialize in holding, buying and selling gold for retirement accounts.

The best way of buying gold for a gold IRA is to do a rollover. A rollover is when you take the money that’s in your 401k and move it into another account without being taxed on it. The most popular rollover is from a 401k to an IRA. When you’re rolling over from a 401k to a gold IRA, you’re just changing the custodian of the account – not the investments inside of it. The benefits of doing a rollover are that you’re not taxed on the money when it moves and that you can keep making contributions to your retirement account. There is more to talk about on what this is but you get the idea.

Why Move Your 401k into a gold IRA?

Whether you’re 40, 50 or 65+ years old, it’s important to understand the benefits of diversification. If you only hold one type of investment whether that’s Vanguard’s index funds, F500 stocks or you’ve gone all in on crypto – it’s important to really think about your retirement funds in a few buckets. My theory has always been to have investments that are across high, medium and low risk investments. You’re not going to want to put 100% of your retirement fund into Bitcoin but you may want 5-10% depending on your risk tolerance and retirement age. You typically hire a financial advisor to help you figure that out but they traditionally won’t be recommending that you put your money into a self directed gold IRA or some type of gold futures account. You are going to want to find someone who understands gold, gold IRA companies and can really help you understand the benefits of physical precious metals.

There are also some tax advantaged retirement account options that the IRS (Internal Revenue Service) may want to understand so just make sure if you start buying up gold stocks or putting some of this into a self directed IRA that you understand what you’re doing before doing it. The last thing you need is the IRS coming to ask you questions about your gold IRA provider and where you store physical gold.

Why choose Augusta Precious Metals?

There are a lot of options out there for gold IRA companies. Some of them will promise you free silver or gold coins when you sign up for their IRA. The reason I recommend Augusta Precious Metals to everyone I talk to is because of the many reasons you’ll find throughout your research.

  • Money magazine’s “Best Overall” Gold IRA Company in 2022
  • Investopedia’s “Most Transparent” Gold IRA Company in 2022
  • A+ BBB Rating, AAA Rating from Business Consumer Alliance
  • Free guides on how to avoid gimmicks & high-pressure tactics used by gold IRA companies
  • 1000s of 5-star rankings — 100s of top consumer reviews everywhere
  • Zero fees for up to 10 years – every customer qualifies
  • Quarterback Joe Montana and his financial team chose Augusta over others
  • [Must watch:] One-on-one web conferences by Harvard-trained economic analyst
  • Ideal for customers turned off by pressure from their current gold IRA company
  • Makes compliance & transparency a major part of its business
  • Account lifetime service

I am a die hard 49ers fan and have always loved Joe Montana. The fact that his financial team was able to vet Augusta Precious Metals and make decisions for Joe and his family makes me even more excited about what Augusta Precious Metals is able to do to make sure that out of all the precious metals companies, they are the go to option if you’re thinking about precious metals iras as an investment option for your long term retirement account investment.

I never thought I’d be talking to people about gold IRAs and making sure that individuals at least consider this but with the direction our country is going and the unknown when it comes to how the dollar is going to be valued in 5-10 years, it’s important to really consider this in your roth IRA or rather your roth gold IRA.

How much does it cost to move 401k to gold?

The cost to move your 401k to gold will depend on a few factors. The first is what type of investments you currently have in your 401k. If you have a lot of stocks and mutual funds, you may have to pay some fees to sell those in order to reinvest into gold. The second cost will be the fees associated with setting up a self-directed IRA, which is what you would need in order to invest in gold. These fees can range depending on the provider you choose. The last cost to consider is the price of gold itself. Gold prices fluctuate daily, so you will want to keep an eye on the market to ensure you are getting a good price for your investment.


There are also going to be differences between self directed IRAs and a gold individual retirement account (IRA) so just make sure you understand the options you have with your gold IRA provider.

The other option is to look a gold ETF but that could also be part of your gold investment strategy depending on the physical gold investments you’re going to consider and/or if you decide to go straight to buy gold coins (which would not be a gold IRA).

FAQs

What are the benefits of a gold IRA?

The benefits of a gold IRA include the potential for hedging against inflation and protecting your wealth.

What are the fees associated with a gold IRA?

The fees associated with a gold IRA will vary depending on the provider you choose. Some providers may have setup fees, while others may not. It is important to compare fees before choosing a provider.

What is the minimum investment for a gold IRA?

The minimum investment for a gold IRA will also vary depending on the provider you choose. Some providers may have a minimum investment of $5,000, while others may have a minimum investment of $50,000.

Most Trusted Gold IRA

Augusta Precious Metals is the most trusted gold IRA company