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What You Need To Know About Gold-backed Retirement Accounts
As more investors discover the benefits of precious metals, many people are now asking, “What are the steps to converting 401k to gold?”
If you’ve done your homework already, then you probably know that adding gold to a 401k generally isn’t possible. But there are other gold investment options that provide virtually the same retirement planning benefits, such as a gold IRA (individual retirement account). Opening such an account is easy – it’s just a matter of converting your eligible 401k into an IRA backed by investments in gold.
So, why can’t you just add gold to a 401k? And, what’s the best way to ensure that you make the right precious metals investments for your retirement goals?
Here’s what you need to know.
Understanding a 401k
It’s important to remember that a 401k is an employer-sponsored plan. While you have a certain amount of flexibility over how much money you invest and what you invest in, you are typically limited to only a handful of mutual funds, bonds or other stocks.
In essence, you are at the mercy of your employer and the brokerage that holds the accounts. In most cases, you simply won’t have the option to make a 401k gold investment whatsoever. Instead, you’ll most likely be limited to investments in paper assets.
The solution: turn 401k into gold
The alternative to a limited employer-sponsored plan is convert a 401k to gold – specifically a gold IRA. If you’re familiar with retirement accounts, then you probably already know about IRAs – they’re individual accounts, separate from your employer’s plans. There are different contribution limits and guidelines, but you can have far greater investment options. So, the next question is, “How do I turn my 401k into gold?” It’s actually very simple.
How to convert a 401k to gold
Anyone who is eligible to open an IRA can do so regardless of whether you currently have a 401k with your employer, or no retirement account at all. But if you do have a 401k, it may be eligible to be rolled over into a precious metals IRA. You can choose to convert all or a portion of your eligible 401k into the gold-backed IRA.
A precious metals IRA can be made up of investments in not just gold, but also silver, platinum and palladium. Certain U.S. coins, such gold proof coins, have been approved specifically for use in precious metals IRAs, though there are many additional options to choose from. This is where the guidance of an experienced precious metals company can be invaluable. A knowledgeable advisor can help determine which investment options are best for your situation.
If you’re interested in the numerous advantages of investing in gold or other precious metals for retirement, let Birch Gold Group be your guide.
We are a leading precious metals company, rated A+ by the Better Business Bureau and known for our exemplary record of service. Our specialists will walk you through the process of setting up and funding your gold-backed IRA, and we are happy to show you how to convert a 401k to gold. We can also make recommendations on how to best allocate your contributions, based on your individual needs and goals.
For more information on how to rollover 401k to gold, simply fill out the form on this page, or call us at (800)355-2116 to speak with one of our knowledgeable specialists today.