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401(k) accounts can be great tools to reduce your taxes and grow your retirement savings, but they usually leave a lot to be desired in terms of investment options.
If you aim to secure your future with a robust retirement portfolio while still enjoying the tax advantages of a 401(k), you’ve probably taken a look at the various options that an individual retirement account (IRA) can offer. Physical gold emerges as an attractive choice.
While you can’t invest in physical gold directly in almost any employer-sponsored 401(k), you can still rollover your account into an IRA and enjoy the best of both worlds: tax-deductible contributions to your retirement account as well as a robust set of investment options.
When it comes to asset choices, employer-sponsored 401(k)s are limited in what they bring to the table. Depending on how your employer has chosen to set up your plan, the funds in your 401(k) can be used to buy limited quantities and types of assets, and these will often be of questionable value.
Employer-sponsored 401(k)s offer an assortment of pre-selected stocks, mutual funds and bonds, and sometimes emphasize investments in the company’s own stocks. However, as these are all paper assets, they are vulnerable to a slew of risks. For example, if an employer encourages its employees to invest in company stock but then goes bankrupt, employees can lose a significant portion of their retirement. Even if you invest in other options, all of the other paper assets that your 401(k) offers are likely subject to the same ongoing stock volatility.
Needless to say, gold isn’t subject to the whims of any single company or even the global market. It’s an asset for the present and future that can help contribute towards financial security, regardless of what happens to other assets in your retirement account.
Since an employer-sponsored 401(k) plan won’t let you invest directly into physical gold, you need to find a different way to diversify your retirement portfolio into precious metals.
This comes in the form of a rollover process, during which Birch Gold Group first helps you set up a Precious Metals IRA and then move the funds from the 401(k) into your new account. From there, you can purchase gold and other precious metals while reaping the numerous benefits that a tax-deferred retirement account gives.
To purchase gold with the funds from a 401(k), you will first need to set up a Precious Metals IRA. Our Precious Metals Specialists are here to assist you with this process and make the rollover as smooth as possible.
Precious Metals IRAs require a qualified custodian who will manage the administrative tasks of the retirement account for you. We work with several industry-leading professionals in this field to ensure that our customers are neither bogged down by paperwork nor encumbered by annual account management.
We’ve boiled down the purchase of gold with a 401(k) to a simple three-step process:
1. Reviewing the account and ensuring eligibility. One of our IRA Specialists will take a look at your 401(k) to help you understand if you are eligible to roll the funds over, as well as to assist with all of the paperwork necessary. We’ll do our best to answer any questions you may have in detail, and we’ll be with you at each step of the rollover process.
2. Opening a Precious Metals IRA and rolling over the 401(k) funds into it. Once we’ve covered the eligibility and you’ve decided on the amount you’d like to transfer, it’s time to open your self-directed individual retirement account with a custodian. Assuming that your current 401(k) is eligible for a rollover, the transfer of funds from one account to another will not incur any taxes or penalties.
3. Buying gold and other precious metals. Once your Precious Metals IRA is up and running and filled with the funds from your 401(k), it’s time to choose the precious metals that you’d like to purchase. Your Precious Metals Specialist at Birch Gold Group can advise you when it comes to the differences between the metals and help guide you towards making the right choice based on your needs, desires and situation. Our qualified custodian will also handle the logistical side of things, and once your purchase has been placed, your metals will be secured in a certified depository.
Every year, the IRS revisits the contribution limits for 401(k)s—and potentially other retirement vehicles—for the upcoming year. This can result in changes. And as of November 6, 2019, it did.
In 2019, the IRS made several key adjustments to the 401(k) contribution limits for the 2020 tax year.
When you work with a Precious Metals Specialist to review your existing retirement accounts and identify which ones you would like to rollover or transfer into your SDIRA, they will help you identify which ones are eligible to be moved.
An SDIRA could allow you to take these savings—such as your existing 401(k) accounts—and reallocate them into a wider range of assets than a conventional IRA, diversifying your retirement.
You’ve no doubt gathered that there’s a lot more to physical precious metals investment than American Eagle coins.
Let’s have a look at some of the various kinds of metals you can add to your retirement account:
Besides gold and silver coins, Birch Gold Group also offers platinum and palladium investment options, along with bars made from any of the four metals. Each of the metals holds exceptional value for purposes of investment, manufacturing and collection, and we can help explain how they differ from one another and what they’re used for so you can make the best decision for your retirement savings.
Assets and currencies come and go, but precious metals stick around. Once you’ve opened a Precious Metals IRA, you’re exposed to numerous benefits, not the least of which is a diversified future.
Working with qualified, trusted professionals with a track record of adhering to financial laws and regulations is critical in order to protect your retirement accounts. With us, you don’t have to have any second thoughts about where your gold is, who’s handling it and whether you’ve missed out on some paperwork details that the IRS won’t be happy about down the line. We will walk you every step of the way, and we work with the industry’s leading custodians and depositories.
Our qualified custodian handles the legal and administrative side of managing your Precious Metals IRA in order to ensure that everything goes smoothly. With minor input on your part focused around whether to keep the assets or buy more, you won’t have to give a moment’s thought about yearly audits, reports and filings, nor will you have to keep constant track of changes in laws. The custodian handles all the red tape regarding your IRA and ensures that you avoid the pitfalls that have caused many to lose their hard-earned retirement savings.
We’re also here to handle the acquisition of your precious metals while you make the financial decisions. After we help you purchase the metals that you wish, they will be secured in one of the two high-security companies we work with: the Delaware Depository or Brink’s Global Services. After it’s stored in the vaults, the gold within your IRA will be in full compliance with the IRS at all times, and the insurance policies and security measures of the two security services will cement the issue of safety.
Many people think that if they’re still working for the employer with whom they set up their 401(k), they can’t rollover the funds from that account to a Precious Metals IRA. While that is often the case, you may be surprised to learn that there are many exceptions that could allow you to move some or all funds while you’re still with the same employer.
Our in-house team of IRA Specialists are always available to help you sort out your options and give you any information you require. Whether you’d like to know if your account is eligible for a rollover or are wondering how self-directed IRAs work, don’t hesitate to reach out to us and we’ll answer whatever questions you might have.