The short answer: The safest way to move retirement savings into gold is a direct rollover or trustee-to-trustee transfer from your 401(k), 403(b), TSP or existing IRA into a self-directed gold IRA. Done directly, there is no tax, no 20% withholding and no 60-day deadline. Most people can roll over a plan from a former employer at any time, and many plans allow in-service rollovers starting at age 59 and a half.
Which retirement accounts can be rolled into a gold IRA?
| Account | Can it move to a gold IRA? | Typical conditions |
|---|---|---|
| 401(k) from a former employer | Yes | Any time after you leave the job |
| 401(k) at your current job | Sometimes | Only if the plan allows in-service rollovers, often at 59 and a half |
| 403(b) or governmental 457(b) | Yes | After separation, or as the plan allows |
| Thrift Savings Plan (TSP) | Yes | After separation, or an in-service withdrawal at 59 and a half |
| Traditional, SEP or SIMPLE IRA | Yes | Any time by transfer; SIMPLE IRAs only after two years of participation |
| Roth IRA or Roth 401(k) | Yes, into a Roth gold IRA | Keeps Roth status |
Check your plan’s summary plan description or call the plan administrator to confirm what your plan allows.
What is the difference between a transfer, a direct rollover and an indirect rollover?
- Trustee-to-trustee transfer (IRA to IRA): money moves directly between custodians. No tax, no limit on how many you do.
- Direct rollover (employer plan to IRA): the plan sends the money to your new custodian, or issues a check payable to the new custodian for your benefit. No tax and no withholding.
- Indirect rollover: the money is paid to you and you have 60 days to deposit it. Employer plans must withhold 20% for federal taxes. To avoid tax on that 20%, you have to replace it from other savings. You are limited to one indirect IRA-to-IRA rollover in any 12-month period.
For almost everyone, a direct move is the better choice. It removes the main ways a rollover goes wrong.
How does a gold IRA rollover work, step by step?
- Choose a gold IRA company and custodian. Get the full fee schedule and the markup on the products you are considering, in writing.
- Open the self-directed IRA. Match the account type to the money: traditional to traditional, Roth to Roth.
- Request the rollover or transfer. The new custodian usually sends the paperwork to your old plan. Some 401(k) plans require you to call them yourself.
- Wait for the funds to arrive. Transfers commonly take one to three weeks, depending on the old plan.
- Buy your metal. Once cash is in the new IRA, you place the order. Compare the quoted price with the live spot price.
- Confirm storage. The dealer ships directly to an approved depository. Your custodian statement should list each product and quantity.
How much of your savings should you roll over?
You do not have to move everything. In fact, you probably should not. Gold pays no income and can fall for years. It dropped 28% in 2013 and lost ground again in 2014 and 2015. Many people who use gold IRAs roll over only part of an old 401(k), keeping the rest in diversified stock and bond funds. Our gold allocation guide shows how to think about the size.
Be very cautious of anyone who urges you to move your entire retirement into metals. That is a classic sign of a high-pressure sales pitch. See our guide to gold IRA scams.
What mistakes can turn a rollover into a tax bill?
- Taking a check made out to you from a 401(k), which triggers 20% withholding.
- Missing the 60-day deadline on an indirect rollover.
- Doing two indirect IRA rollovers within 12 months.
- Mixing account types, such as moving pre-tax money into a Roth without planning for the conversion tax.
- Rolling over required minimum distributions. If you are 73 or older, take that year’s RMD before rolling over, because RMDs cannot be rolled over.
What does the rollover cost?
The rollover itself is usually free or low cost, though some old plans charge a small closing fee. The ongoing costs come from the gold IRA: setup, yearly custodian and storage fees, and the dealer spread on the metal. Some companies waive first-year fees on larger rollovers. Ask for the total cost over five years, not just year one.
How do you start a rollover?
Gather a recent statement from the account you want to move, then request information from a gold IRA company and compare offers.
Frequently asked questions
Can I roll over my 401(k) into a gold IRA while still working?
Only if your plan allows in-service rollovers. Many plans permit them at age 59 and a half. Ask your plan administrator.
Is a gold IRA rollover taxable?
Not if you do a direct rollover or trustee-to-trustee transfer into the same type of account, such as traditional to traditional.
How long does a gold IRA rollover take?
Commonly one to three weeks for the funds to arrive, depending on your old plan, plus a few days to buy and ship the metal to the depository.
Can I roll over my TSP into a gold IRA?
Yes, after you leave federal service, or through an in-service withdrawal once you reach 59 and a half.
What is the 60-day rollover rule?
If retirement money is paid to you, you have 60 days to deposit it into an IRA to avoid tax. You get one indirect IRA-to-IRA rollover per 12 months.
Should I roll over my whole 401(k) into gold?
Usually not. Gold pays no income and can fall for years, so most people who use a gold IRA move only part of their savings.
Sources: IRS: rollovers of retirement plan and IRA distributions, TSP.gov. General education, not tax advice.