Can I Buy Gold with My 401k?

• Gold is a precious metal that has been used for centuries as a form of currency as well as a store of value.
• Gold is valued for its beauty, as well as its scarcity, durability, and resistance to corrosion.
• Gold is often used for jewelry and decorative purposes as well as industrial purposes.

Gold is a precious metal that has been used for centuries as a form of currency as well as a store of value. Gold is valued for its beauty, as well as its scarcity, durability, and resistance to corrosion. Gold is often used for jewelry and decorative purposes as well as industrial purposes. Gold can also be used as an insurance policy against inflation, deflation, and currency depreciation.
Gold is a sound investment that has historically held its value in periods of economic turmoil and uncertainty. It is traded on the COMEX division of the New York Mercantile Exchange, it is also traded on the London Bullion Market Association (LBMA), and it is traded on many over-the-counter (OTC) markets around the world.

Individual Retirement Accounts (IRAs)

Many employer-sponsored retirement plans allow you to invest in precious metals. Gold and silver IRAs allow you to invest in physical precious metals such as bars and coins, as well as gold and silver exchange-traded funds (ETFs).
You can buy precious metals with an IRA through self directed IRA custodians, such as American Bullion, based in Dallas, Texas. These custodians allow you to purchase precious metals online, over the phone, or in person at one of their locations.

403(b)s

Some 403(b) retirement plans that are similar to 401(k)s offer gold investment options.

401(a)s
Some 401(a) plans offer gold investment options.

A gold IRA
A gold IRA is an Individual Retirement Account that invests in physical gold. The gold is stored at an IRS-approved depository, which must meet strict guidelines for security, location, and insurance.

457(b)s

Many employers and 401k plan sponsors offer their employees the option of investing in such funds.

Most 457(b) plans are underfunded, with only 10% of 457(b) plan assets invested in alternative assets, such as gold.

Individual Retirement Accounts (IRAs)
Like 401(k) plans, most IRAs also offer alternative asset options, including gold.

The IRS sets standards on what types of assets must be placed in retirement accounts.

SEP IRAs

A SEP IRA (Simplified Employee Pension plan) is an IRA in which the employer makes contributions to the employee’s retirement. A SEP IRA allows employees to make contributions as well, which can include an employer match. Gold bullion is an eligible investment.

SIMPLE IRAs
A SIMPLE IRA (Savings Incentive Match Plan for Employees) is an IRA in which the employer makes contributions to the employee’s retirement. A SIMPLE IRA allows employees to make contributions as well, which can include an employer match. Gold bullion is an eligible investment.

Employer Account
An employer account allows employees to invest in a variety of assets, including gold.

SIMPLE IRAs

If you’re self-employed or an employee of a small business, you’re eligible to contribute to a SIMPLE IRA, which is a retirement account that offers numerous tax benefits. You can put as much as $13,000 per year into a SIMPLE IRA in 2021.
There are a few stipulations. These plans must be established directly with an employer to be eligible. If you’re self-employed, you’ll be eligible to establish a SIMPLE IRA with a financial institution, such as a brokerage firm or a bank.

The benefit of a SIMPLE IRA is that an employee can contribute pre-tax dollars, which lowers their taxable income. The employer also doesn’t have to deduct a matching contribution.
But SIMPLE IRAs have some drawbacks. There’s a maximum contribution limit, and you must wait until age 59 1/2 to withdraw the money without paying a penalty.

Rollover IRAs

If you have a 401k, you have the option to roll it over into a traditional or Roth IRA. Depending on the type of IRA you roll it over into, you may have access to gold funds.
Traditional IRAs: If you have a traditional IRA, you will have access to gold funds. The IRS guidelines state that traditional IRAs are tax-deferred and that contributions are not tax-deductible.
Roth IRAs: If you have a Roth IRA, you will have access to gold funds. One advantage of a Roth IRA is that contributions are made after taxes, which means you avoid paying taxes on your contributions or earnings.

Gold IRA: Should You Open One To Save For Retirement?

The Bottom Line

You can invest in physical gold through an IRA or an Individual Retirement Account, although there are some restrictions. Some retirement savings accounts allow you to purchase physical gold coins or bars, while others don’t. If you want to buy gold bullion with your 401k, talk to your plan administrator to learn how you can invest in gold.