• Home
  • /
  • Blog
  • /
  • How to Move 401k to Gold Without Penalty (Easy To Read 2021 Guide)

How to Move 401k to Gold Without Penalty (Easy To Read 2021 Guide)

Ryan Carey
May 12, 2020

One of the motivating factors for investing is to safeguard your future buying power. 

Inflation is the main driver of reducing the value of the dollar. That means that by the retirement age of 60-70 years, the money you have today would be worth slightly less. 

If you're on the fence about whether or not a precious metals investment is right for you, take a look at our most recent article on buying a business for 100% annual returns in [month] [year]. 


Nobody truly wants that situation, and yet the historical trends have shown this is the case. 

So the best way to retain the value of your hard earned money is to invest it into something productive that will yield returns well into your retirement years. 

Precious metals are often valued by investors because their inherent value protects them against inflation (and in times of recessions). So, a valid investment option to consider is gold for retirement

After all, if (and when) the dollar collapses, do you trust the banks to protect your wealth?

Today my aim is to walk you through how to move 401(k) to gold without penalty. 


Right now the market indexes are in a state of turmoil, with volatile investor sell-off motivated insanity. Traditional forms of investing have seen the tailwind of a depression.  

I’ve been observing trends in our economy and using it to our reader’s favor for years, and today, I’m going to share my observations on a gold 401(k) rollover. 

Keep reading until the end of this article and discover how to effortlessly secure your IRA/401(k) with gold, without outrageous fees and taxes from the IRS..

Here, we’ll explore different retirement plans investing in gold: 

  1. Invest a portion of your 401k into gold mutual funds or ETF

  2. Roll over your IRA into a SDIRA

  3. Roll over part or all of 401k into a SDIRA

But first, take time to do your research and consider if investing in gold fits with your strategy. 

You should also consult with your tax advisor or a tax expert and be aware of any tax implications in rolling over your 401k to gold, so that you are following the law and do not incur any unnecessary charges from penalties. 

Gold IRA Rollover Guide For Beginners

Traditional IRAs do not allow you to hold physical precious metals in the account, so you’ll need to open a gold IRA. This is a self-directed individual retirement account (SDIRA) which allows you to invest in a wider variety of investments (including precious metals) compared to a traditional IRA. 

Note that Self Directed IRA's (SDIRAs) are better suited for advanced and knowledgeable investors.

This is because, as the name indicates, you’ll have direct control in choosing which assets constitute your portfolio, rather than someone else managing it for you.  

And because your physical gold, silver, and other precious metals need to be stored in certain conditions to comply with the regulations of the Internal Revenue Service, you can’t hold on to the precious metals yourself

Instead, you will have to keep it with a “custodian” who has the proper storage facilities. This is usually a brokerage firm, bank, or other legitimate asset representative. 

The Gold IRA rollover process is straightforward and simple. 

  1. First take time to research potential gold IRA companies.

  • For our gold IRA rollover guide, we reviewed some companies and listed criteria to choose the best company for you. Below, we’ve also listed our favorite custodian firm!  

  1. Gold IRAs can be set up with pre or post tax funds (Roth IRA).

  2. After you’ve chosen your custodian firm, contact them.

  3. They will then provide all the necessary paperwork and contact information to process the rollover.

  4. After you’ve filled out the paperwork, it’s time to go shopping for gold!

  5. In case you're in two minds  about what custodian to check out, I highly recommend checking out Advantage Gold for a Gold IRA rollover. I’ve had a fantastic experience with the team at AG, and they even have 579+ verified reviews from happy customers across the United States in case you’d like to take a look. 

    You can grab their Free Gold IRA Investing Guide below!

  • Shop gold and silver dealers for the products you wish to purchase. Or hire a broker to shop on your behalf.

  • After you’ve made the purchase, the dealer will invoice the custodian firm for payment. 

  • The gold or silver will be transferred to an approved depository. Once the metals have arrived at the depository, this marks the completion of the transfer. 

  • Your IRA custodian firm will provide you with regular statements and updates in regard to your precious metal holdings. 

Gold 401k Rollover Guide (Also For Beginners)

A 401(k) is a self-directed, employee contribution to a retirement plan offered by the worker’s employer. 

Like the traditional IRA, most 401k plans don’t allow or offer physical gold investments, and penalize for premature withdrawals. 


We offer some guidelines below to show you how to move 401k to gold without penalty: 

  1. Use part of your 401k to invest in Gold Mutual Funds and ETFs. You won’t get penalized for owning paper assets of gold.   

  2. Or, rollover part or all of your 401k into an SDIRA to hold physical precious metals. The process is the same as a gold IRA rollover (refer to previous section - Gold IRA Rollover guide for beginners). Your custodian firm will help you with the paperwork. 

When rolling out your 401k to a gold IRA, you are allowed one tax-free rollover from an IRA or 401k each year. The rollover of the full amount must occur within sixty days of removing funds from your current IRA to avoid a penalty. 

Check out our guide if you need more information on performing a gold 401k rollover

Our Favorite Custodian for Retirement Gold

As mentioned before, gold must be stored with a custodian firm. 

And because gold IRAs are a relatively new investment option, established in 1997, there are new companies providing an all-in-one service. 

So, how do you know which company is trustworthy and the best choice for you? Afterall, this is your retirement savings we’re talking about here. 

We recommend Advantage Gold as the best gold IRA company, after reviewing and comparing them against other companies. 


Advantage Gold comes out on top for 5 main factors:

  1. Reputation

  • They emphasize educating their customers rather than hard selling, which is a great choice for first time buyers. 

  • They empower their customers to make the best decisions based on knowledge of availability of other options. 

  • And their timely communication and resolving customer complaints result in high customer satisfaction (5-star rating with Trustlink). 

  • They are also accredited by the Better Business Bureau (BBB). 

  1. Policies and Fees

  • Low, flat set-up fees. 

  • Flat annual fee. 

  • Minimum investment is $5,000. 

  1. Flexibility and History

  • Founded in 2014. 

  • Established for 6 years. 

  • Relatively new, but building a solid base. 

  1. Buyback Program 

  • Absolutely allows buybacks and at fair market value, any time. 

  1. Storage Safety

  • Uses Brinks depositories, which is one of the best in the storage industry. 

There are many companies out there, so make sure to choose the one that fits with your investment strategy. 


In summary, gold IRAs are a great and viable way to make your retirement funds work for you and fight against inflation. You can legally rollover your IRA or 401k into a gold IRA. And your custodian firm of choice will help with the paperwork involved and process of purchasing gold after you enroll with them (buying, storing, and updating you on your gold purchases). 

If you haven’t decided on enrolling in a gold IRA yet, no problem! There is still a variety in selection of investments. If you’d rather keep your retirement fund, you can improve its returns by investing in gold mutual funds and ETFs without accruing penalties and rolling over into a gold IRA. 

In either case, investing in gold is a great way to diversify your portfolio, hedge against inflation, and provide some stability in uncertain economic times.

About the author 

Ryan Carey

You may also like

SoFi Invest Review

SoFi Invest Review