401k To Gold IRA Rollover: Should You Do It?

gold iraIf you want to rollover your 401k to an IRA, you have probably been presented with an option of a Gold IRA. When you rollover to a Gold IRA, you simply have an account backed by gold instead of the US Dollar. There are some investors who do no support this choice arguing that gold is one of the most volatile items that you should not put your trust on.

These investors say that gold can easily be affected by political and emotional issues. However, gold as a long term investment option is much more reliable than other types of investments. When you take a closer look at the performance of gold, it is definitely a good option for a 401k rollover.

Important facts that you need to know about 401k to gold IRA rollover:

  • You need a custodian to handle your Gold IRA rollover. The responsibility of the custodian is to roll over funds from a 401k to a Gold IRA. During this process, the custodian must ensure that all regulations and tax laws are adhered to.

  • You have to know whether your custodian is passive or active. If your custodian is passive, he will always wait on your instruction before doing anything. A passive custodian can never do anything on your behalf. If your custodian is active on the other hand, you will get insights and advice based on market trends so that you can maximize on your retirement investment.
  • There are two types of Gold-IRA that you can decide to rollover a 401k into. The two options are a Gold IRA based on gold mining stocks and a Gold IRA backed by physical gold. Gold mining stocks may be cheaper and have better returns. However, if the mine fails, the stocks will fail too. Physical gold on the other hand is more expensive but it can never completely lose its value.
  • There are rules that govern 401k to gold IRA rollover. Your professional custodian should know all the rules and assist you in making the right decisions.

Gold IRA