Can you use a 401(k) to buy gold? What investors should know before rolling over retirement funds
Summary
You can invest in gold using your retirement savings, but how you do it depends on your 401(k) plan and the type of gold investment you want. Many 401(k) plans do not allow direct purchase of physical gold, but you may be able to invest in gold-related funds or roll over your 401(k) into a self-directed IRA that permits physical gold under certain rules.Key Facts
- Most 401(k) plans do not offer the option to buy physical gold directly.
- Some 401(k) plans allow investing in gold through mutual funds or gold-mining company stocks.
- To hold physical gold, you usually must roll over your 401(k) funds into a self-directed IRA.
- Self-directed IRAs can hold certain approved types of physical gold that meet federal standards.
- Many types of coins and collectibles are not allowed in retirement accounts.
- You need a certified custodian to manage a gold IRA and follow specific storage rules for physical gold.
- Rolling over funds from an active employer’s 401(k) might be limited or require waiting.
- Financial companies like Goldco can help investors add gold to their retirement portfolios.
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