Gold 401k: Investing in precious metals
The Gold 401k plan is one option for boosting your retirement funds. Grow your hard-earned retirement funds through investment in gold. Gold is a viable and valuable investment asset. Physical gold is relatively secure from fluctuations and downturns in the economy.
Designed for self-employed individuals, the Gold 401k features true diversification and versatility in investing. Account holders can invest in gold, but also silver, platinum, bullion, and coins. The investment opportunities are virtually endless.
Structure of the Gold 401k
The Gold 401k is simply a Solo 401k with checkbook control.
You must first qualify for the Solo 401k. The plan is designed for self-employed, small business owners without any full-time employees except themselves and potentially a spouse. Do you have full-time employment elsewhere? You can still qualify for the Solo 401k if you have a form of self-employment, even if it’s just part-time.
If your spouse is also employed by your self-employment business, your spouse can also participate in the plan. This doubles the ability to make contributions to the plan, allowing for a greater amount to invest with.
Benefits of the Gold 401k
Once your Solo 401k is established, you can fund it through contributions and rollovers. You can rollover from almost any retirement account, with one exception: the Roth IRA. According to IRS rules, a Roth IRA cannot be rolled over into a 401k.
Apart from the Roth IRA, any retirement account can be rolled over into the Solo 401k plan without incurring penalties or taxes for early distribution.
Once your Solo 401k is funded, you are ready to invest. The benefits of the plan are many:
- Investment is easy and hassle-free without the need for a custodian
- Investing can be as simple as writing a check
- You can purchase gold and coins from any IRS-approved dealer you choose
- You can store gold with any third-party, IRS-approved depository you choose
Is the Solo 401k plan a good fit for gold investment?
As you can see from the above, the answer is yes! The Gold 401k can purchase assets such as gold, silver, platinum and more. You can choose how you invest your Gold 401k, as long as it is within IRS guidelines. For the gold products or coins, the IRS allows options like the Canadian Maple Leaf, Australian Nuggets and American Eagles.
Once you have purchased gold in your 401k, you must store it with a third-party, IRS approved depository. It cannot be stored in your own home. Maintain the investment by storing it properly.