Skip to content 
Table of Contents
Gold 401(k) to IRA Rollover: How to Move Your 401(k) Into Physical Gold and Silver
Written by Pat Collins and John Halloran | 5.0 Google Review Rating | A+ BBB Rating with Zero Complaints | Serving 58,000+ Investors in All 50 States Since 1992
Quick Answer: To move a 401(k) into physical gold, you have to open a self-directed IRA and have your 401(k) provider send the funds to it via a direct rollover. Done this way, it is generally tax-free. You qualify if you have left that employer or, in many plans, reached age 59½.
Do You Qualify to Move Your 401(k) Into Precious Metals?
As you’re probably aware, 401(k) plans do not allow you to buy physical gold or silver directly, because your plan provider typically only offers a few mutual funds based on how much risk you’re willing to take. But you can move the money to another custodian that does permit you to hold physical precious metals. Whether it can be moved today depends on whether you’re still employed by the company that set it up and whether you’ve reached age 59½ yet.
How Do You Move a 401(k) Into Physical Gold and Silver?
The process has five simple steps, below is a step-by-step guide and we’ll walk you through each one.
- Open a self-directed IRA. We’ll help you complete the application to set up your new account with your IRA custodian of choice. Certified Gold Exchange (CGE) can work with any self-directed IRA custodian, but we prefer Strata Trust because of their fee structure and customer service.
- Request a direct rollover from your 401(k) provider. They can typically execute this over the phone. If you’d like, we can join the call to provide your new custodian’s details and to make sure they rollover funds the right way.
- Your provider sends the funds to your new custodian. They’ll typically be sent by check, made payable to the custodian for your benefit, and arrive within one to two weeks of your call. Because the check is made out to the custodian and not to you, there are no tax consequences. Providers will frequently mail the check to your home address but will let you know up front. If that happens, we’ll provide you with a deposit coupon to include when you mail the check to the custodian, which makes sure the funds are credited to your account.
- Choose your metals. We’ll help you select a mix of gold and silver based on your financial goals. We’ll check pricing against two of the largest national online bullion dealers on the same products and quantities, and work to beat them per our Verified Fair Pricing process. Once you approve, we send you an Investment Direction form to sign that authorizes the transaction. As soon as we receive it back, we lock in your pricing.
- We deliver your metals to your depository of choice. We recommend the Delaware Depository, in either Delaware or Nevada, because our trading partners hold accounts there, which makes it easier to buy and sell later. Delivery typically takes seven to ten days from when we lock in your pricing, and we notify you when your metals ship and when they arrive.
Is a 401(k) to Gold IRA Rollover Tax-Deferred?
Yes, when it is done as a direct rollover into the same account type of IRA, which is how we set it up. The funds are transferred directly to your new custodian, not to you, so the IRS doesn’t treat it as a withdrawal. Nothing is withheld and there are no tax consequences.
The other method is called a 60-day rollover, where your provider would send you the funds personally and you’d have to deposit the money into an IRA account within 60 days. Done that way, the provider is required to withhold 20% for taxes. We always do direct rollovers for 401(k) clients, so this isn’t an issue.
As with any questions about tax treatment, confirm how this applies to you with your tax advisor.
What Should You Check Before You Roll Over Your 401(k) into a Self-Directed IRA?
A 401(k) has a few features IRAs don’t. If any of these apply to you, you may want to raise them with your tax advisor before you move the funds.
- You have Roth money in your 401(k). Some 401(k)s hold both traditional and Roth dollars. Roth dollars would roll into a Roth IRA and traditional dollars into a traditional IRA, which is what keeps the rollover tax-free. If you have both, we set up both IRA account types for you.
- You have a 401(k) loan. An unpaid balance can be treated as a withdrawal if you roll over the funds. And withdrawals are taxed as ordinary income.
- You’re between 55 and 59½. If you left your job in or after the year you turned 55, you can typically withdraw from that 401(k) without the 10% early withdrawal penalty. An IRA account doesn’t have that option, so if you need access to some of your funds before 59½ you may consider leaving that portion in the 401(k).
What If You Still Work for the Employer?
If you’re 59½ or older, your employer-sponsored plan may allow you take an in-service distribution, meaning you can move your vested balance while still working and contributing. Just confirm with your provider that they allow in-service distributions.
If you’re under 59½, you’ll typically need to wait until you leave that employer or reach 59½. In the meantime, we can help you buy gold outside of your retirement funds.
What Precious Metals Can You Hold in Your IRAs Retirement Portfolio?
Per IRS rules you’re allowed to hold gold, silver, platinum and palladium that meet minimum purity standards. But nearly all of our clients choose gold and silver, which must be at least 99.5% and 99.9% pure, respectively. The American Gold Eagle is also allowed, even though it is 91.67% gold. Collectible coins are not permitted. See the full list of IRA-eligible products.
Should you hold gold and silver coins?
Most of our clients hold a combination of both gold and silver in their self-directed IRAs. Gold tends to be the more stable of the two, while silver is a lot cheaper but more volatile. The mix is typically determined based on your retirement planning goals and which metal is the better value at the time.
Why we stick to widely traded bullion investments.
CGE deals only in widely traded bullion, such as American Eagles, Canadian Maple Leafs and bars from recognized refiners. These are the most common items held in precious metals IRA accounts, which makes them very liquid and easy to sell when the time comes. Their prices are published on countless websites, so you can confirm you’re getting a fair deal. Be very cautious if an IRA company is recommending so-called “exclusive” or “premium” coins within an IRA. In our experience they are often priced around 30% or more above the value of their metal. At that markup, a $100,000 rollover would start with about $77,000 worth of metal. Make sure to read our gold IRA scams page to know what to watch out for.
Where Are Your Precious Metals Stored?
IRS rules require that IRA precious metals must be stored at a third-party depository. We recommend the Delaware Depository, with facilities in Delaware and Nevada, where your tangible assets are insured through Lloyd’s of London. Depending on what you hold, you can choose segregated or commingled storage. Keeping IRA metals at home is not allowed and is treated as a taxable withdrawal. Learn more on our gold IRA storage and home storage gold IRA pages.
What Does It Cost to Roll Over a 401(k) Into a Self-Directed IRA?
There are no tax consequences for a direct rollover, and CGE does not charge a fee to help you with it. Your costs for the IRA itself, with Strata Trust, would be:
- Account setup: $50, one time
- Annual custodian fee: $150
- Storage: $115 a year commingled, or $175 segregated
- Transactions: $75 each
If an IRA company offers to pay these fees for you, beware. In our experience, that cost is usually built into a much higher price for your metal. Our gold IRA cost page has the full breakdown.
How Do You Sell the Precious Metals in Your IRA?
Investors can choose to sell at any time. Simply call us for a buyback quote, and we’ll compare current buyback prices against two major online bullion dealers before giving you ours. Once you approve, we’ll send you the Investment Direction form to sign, which authorizes the transaction. The sale typically takes 10 to 14 days.
The cash from the sale will be wired to your IRA account, so the sale itself is not taxed. From there you have three choices:
- Keep it in your IRA as cash.
- Move it to another IRA.
- Withdraw it. You’ll submit a distribution request to your custodian. A withdrawal from a traditional IRA is taxed as ordinary income, and before age 59½ it is generally subject to the 10% early withdrawal penalty.
You can also take the metals themselves instead of cash, withdrawals are taxed as ordinary income. Most of our clients take the cash. Our guide on how to sell a gold IRA covers each step, and we buy back metals you purchased elsewhere too.
Frequently Asked Questions
1. Can I buy gold inside my 401(k)?
No, not physical gold. A 401(k) typically only offers a few funds chosen by your plan provider. To hold physical gold, you have to move the money into a self-directed IRA, which you can do once you’ve left that employer or, frequently, once you’ve reached age 59½.
2. How long does it take to move a 401(k) into gold with a direct rollover?
The process of rolling over funds into a gold IRA will typically take two to four weeks from start to finish. The funds usually take one to two weeks to transfer from your 401(k) provider, and delivery typically takes seven to ten days after you purchase metals.
3. Is there a minimum to invest in precious metals?
Our minimum for new clients is typically $25,000, but we frequently make exceptions. On a smaller account, the custodial and storage fees take a bigger share of your money, so we’ll help you determine if a physical gold IRA makes sense for you.
4. Do I have to move my whole 401(k)?
Not typically. In our experience, you can roll over whatever portion you want and leave the rest where it is, though some plan providers require you to move all of it once you’ve left the employer.
5. Will I get a tax form?
Yes. Your 401(k) provider will send a Form 1099-R showing the rollover, and your new custodian will send a Form 5498 showing the funds arrived. A direct rollover is reported to the IRS but is not taxed. Give both forms to your tax preparer.
6. When will I see my metals in my account?
Usually within five business days of delivery. Once your metals arrive, the depository takes a couple of days to inventory them to ensure everything is in good order. They’ll then notify your custodian, who will typically take a couple of days to update your account. After that you can see your holdings online.
7. How much of my 401(k) should I put into a gold and silver IRA?
That’s a personal decision and it depends on your risk tolerance and what you want to accomplish. Many investors are looking for diversification, a safe-haven and hedge against inflation. And precious metals may be able to help you achieve those goals. But CGE is a precious metals dealer, not a financial advisor, so it’s also worth discussing with yours.
8. Can I hold other investments besides precious metals in a self-directed IRA?
Yes, unlike traditional IRAs, most self-directed IRAs permit you to diversify your retirement savings with a variety of investment options. Asset classes available are typically, precious metals like gold and silver, stocks and bonds, real estate and even cryptocurrencies.
9. Can I do a gold IRA rollover to an existing IRA I have?
If your current IRA custodian offers self-directed IRAs that allows you to invest in precious metals than yes. But many companies IRAs are limited to stocks and similar paper products. So make sure to confirm with your IRA custodian that they allow physical precious metals per gold IRA rules.
The Bottom Line
Moving a 401(k) into physical gold and silver is simpler than you might expect. If you’ve left your employer, or you’re 59½ or older and your plan allows it, you can do a direct rollover and move your funds into a self-directed IRA that allows you to hold precious metals and is tax-deferred. We’ll help you open the account, coordinate with your 401(k) provider and when the transfer is complete, verify your pricing before you buy. From there, your metals are stored at a third-party depository until you’re ready to sell.
Disclaimer: This content is for general education and is not personalized tax, legal, or investment advice. Certified Gold Exchange is a precious metals dealer, not a financial or tax advisor. Confirm how these rules apply to your situation with a qualified tax advisor.
Have a question about moving your 401(k) into gold? Reach our team at (800) 300-0715.
Transparent & Competitive Pricing
Exceptional Service.
-
BBB Rating
Zero Complaints
- 5.0 Star Google Review Rating
-
58,000+ Served
In All 50 States
-
Serving Investors
Since 1992
