Among the benefits of rolling over a 401K into a gold IRA are that the IRA could: Offer more portfolio diversity Provide a hedge against inflation Carry less inheritance restrictions And make you eligible for a saver's tax credit. Because gold prices generally move in the opposite direction of paper assets, adding a gold IRA to a retirement portfolio provides an insurance policy against inflation. Potential disadvantages of 401K plans include: Limited asset options Hefty account fees and penalties for early withdrawal. In order to roll over a 401K into a gold IRA first, you need to establish a self directed IRA through a trustee or custodian. Once the gold IRA is setup, you can begin a 401K rollover. Through an indirect rollover you pull your money from the 401K and then deposit it into the gold IRA.
A direct rollover lets you automatically transfer the 401K funds to the self directed IRA without having to handle the money on your own. When the 401K is closed, the 401K manager will send a check to either you or the custodian of your gold IRA. That money can then be used to buy physical gold or other precious metals.
This federally approved trustee or custodian then stores those precious metals on behalf of the account holder. U.S. Money Reserve can get you started with a 401K rollover. Call today to discuss your specific retirement needs, and click the link in the description to download your free gold information kit which will provide you with important information you should know about adding precious metals to your diversified portfolio..