How to Roll Over a 401(k) to a Gold IRA: Step by Step

Yes - in most cases. A 401(k) can generally be rolled into a traditional IRA, and a self-directed IRA that holds physical precious metals is still an IRA. The money keeps its tax-deferred status as long as the rollover is done correctly. A Roth 401(k) balance would go to a Roth IRA instead (see Roth gold IRA).

The main limit is your plan, not the IRS. Most 401(k) plans only let you roll money out after you leave the employer (retire, quit or are laid off). Some plans allow "in-service" rollovers at a certain age. Call your plan administrator and ask what is allowed before you do anything else.

Note that you cannot buy physical gold inside the 401(k) itself in most plans - the money has to move to a self-directed IRA first.

This is the single most important choice in the process.

• Direct rollover (recommended by most custodians). Your 401(k) plan sends the money straight to the new IRA custodian, or mails you a check made out to the custodian "for the benefit of" you. Nothing is withheld, nothing is taxed, and there is no limit on how often you can do this.
• Indirect (60-day) rollover. The plan pays the money to you. By law the plan must withhold 20% for federal taxes. You then have 60 days to deposit the full amount into the new IRA - including the 20% that was withheld, which you have to make up from other savings. Any part you do not redeposit in time is generally treated as a taxable distribution, and penalties can apply if you are under 59½. You can get the withheld 20% back as a refund when you file your taxes, but only if you replaced it.

Example: on a $100,000 indirect rollover, you would receive $80,000. To roll over the full $100,000 you would need to add $20,000 of your own money within 60 days. If you only deposit the $80,000, the missing $20,000 is generally treated as a distribution.

For moves between IRAs (not from a 401(k)), indirect 60-day rollovers are limited to one per 12 months. Direct trustee-to-trustee transfers have no such limit.

1. Check your plan's rules. Confirm you are eligible to roll out (usually after leaving the employer) and ask how the plan sends direct rollovers - wire, check to the custodian, or another method.
2. Choose a gold IRA company and compare written quotes. Ask each for the setup fee, yearly custodian and storage fees, the markup over spot on the exact coins or bars you would buy, and what they would pay to buy the metal back. Our ranked list of gold IRA companies is a starting point.
3. Open the self-directed IRA. The dealer usually connects you with a custodian (Equity Trust, STRATA and Goldstar are names that come up). You sign the custodian's account application, not just the dealer's.
4. Request a direct rollover. Fill out your 401(k) plan's distribution or rollover form, naming the new custodian as the recipient. Many custodians will help with this paperwork.
5. Wait for the funds to arrive. Timing depends on the plan - from days to a few weeks. The cash sits in your new IRA until you place an order.
6. Choose your metals and lock the price. You (or the dealer, with your sign-off) direct the custodian to buy specific IRA-eligible products. Get a written invoice showing quantity, price per unit and the spot price at the time.
7. Confirm storage. The dealer ships the metal to the depository. Check that your statement lists the products and whether storage is segregated or non-segregated.

It varies mostly with how quickly your old plan processes the request. Some move money in a few days; others take several weeks, particularly if they mail a check. The steps on the gold IRA side - opening the account and buying metal - are usually faster. Be wary of anyone who rushes you to "lock in" a price before your money has even arrived.

You do not have to. You can roll over part of an old 401(k) into a gold IRA and move the rest to a regular IRA, or leave it in the plan if the plan allows. Physical gold pays no interest or dividends and its price can fall, so many people keep it to a portion of their savings. See how much gold in a retirement portfolio for the ways people think about sizing it.

Also compare against simpler options. If what you want is gold price exposure, a gold fund in a normal IRA can be cheaper - see gold IRA vs gold ETF.

• Taking a check made out to you when you meant to do a direct rollover - this triggers the 20% withholding.
• Missing the 60-day deadline on an indirect rollover.
• Buying non-eligible products like Krugerrands or rare collectible coins - see which metals qualify.
• Agreeing to keep the metal at home - see why home storage is not allowed.
• Not asking for the markup in writing. In the 2023 Red Rock Secured case, regulators said customers - many rolling over IRAs, 401(k)s and TSPs - paid average markups of 100-130% after being told 4-29%.
• Being sold "premium" or proof coins instead of plain bullion without understanding the price difference. Read gold IRA scams and red flags.

Before you sign anything, get three things in writing from each company you are considering: total fees for year one and each year after, the markup over spot on the products you would buy, and the buyback price policy. Compare them side by side with the gold IRA fee calculator, then see our best gold IRA companies rankings or reviews of Goldco, American Hartford Gold and American Gold and Silver Group.

Talk to a tax professional or fee-only financial adviser if you are unsure - especially if you have company stock, after-tax money or Roth money in the plan.

This article is general information, not financial, tax or legal advice. Fees, minimums and promotions change often and vary by custodian and account size - confirm current terms in writing with the company and your custodian before you invest.