Gold IRAs
How to Roll Over a 401(k) or IRA Into a Gold IRA, Step by Step
Moving money from a 401(k) or IRA into a gold IRA takes several steps and a handful of different companies. Get one wrong and the move can turn taxable, so we take them in order and finish with the paperwork that shows up afterward.
The rollover in five lines
- An old 401(k) from a former employer can be rolled over in nearly every plan. A plan at your current job might not allow it.
- Ask for a direct rollover or a trustee-to-trustee transfer, so the money goes straight to the new custodian and never to you.
- A check made out to you can trigger 20% withholding and a 60-day deadline, and IRA-to-IRA rollovers of that kind are limited to one per 12 months.
- Plain bullion that meets IRS purity rules is the simplest choice and, at most dealers, the cheapest. Get the markup in writing before you buy.
- Most rollovers take a few weeks start to finish, and Form 1099-R and Form 5498 arrive afterward.
First, what a rollover actually is
A rollover moves retirement money from one account to another without counting as a withdrawal. Do it right and you owe no tax and no penalty on the move; the money stays in a tax-advantaged account with the same tax treatment it had before.
If you're fuzzy on who the dealer, custodian, and depository are, our guide on how a gold IRA works sorts that out. Here we'll stick to the move itself.
Step 1: Make sure the money can move
Your current plan has to let it go. Will it? That depends on what kind of account it is and whether you still work for the employer that sponsors it, since plans treat current and former employees very differently.
- An old 401(k) from a job you've left. In most plans you can roll it over whenever you like. It's the most common source of money for a gold IRA.
- A 401(k) at your current job. A lot of plans won't allow rollovers while you're still employed there. Some allow an "in-service" distribution once you reach a certain age, and 59½ is a common one. Every plan writes its own rules, so call the plan administrator and ask: "Does my plan allow in-service rollovers, and at what age?"
- An existing IRA. Money in your own traditional or Roth IRA can move to another IRA of the same type at any time, usually as a trustee-to-trustee transfer.
Check, too, whether your 401(k) holds Roth money, after-tax money, or an unpaid loan, because Roth money belongs in a Roth IRA and an outstanding loan can turn taxable when you leave the plan. Our guide to 401(k) options at retirement covers those choices.
Step 2: Pick and vet the company and custodian
Two businesses have to be in place before a dollar moves: a self-directed IRA custodian that accepts precious metals, and a dealer to sell you the metal. Many gold IRA companies are dealers that work with a few custodians they know well.
We'd ask every one of these before signing:
- Which custodian and depository will hold my account, and can I choose a different one?
- What are all the yearly fees, in writing?
- What's your markup on the products you recommend, as a percent over the spot price?
- What would you pay me if I sold this metal back to you today?
- Is the custodian a bank, a credit union, or an IRS-approved nonbank trustee?
Our guides on choosing a gold IRA company and gold IRA fees dig deeper. Don't rush this part, because no legitimate company needs your answer today.
Step 3: Open the self-directed IRA
The custodian sends an application asking for your name, address, Social Security number, date of birth, and a beneficiary, and you'll choose traditional or Roth. Match it to the money you're moving. What you get back is an empty IRA with an account number, which you'll need for the next step.
Step 4: Ask for a direct rollover or transfer
This is where the expensive mistakes happen. The money should travel from your old account straight to your new custodian rather than being paid to you.
| Moving from | What to ask for | Who starts it |
|---|---|---|
| 401(k) or other employer plan | A direct rollover payable to your new IRA custodian | You, by contacting your plan administrator |
| Traditional or Roth IRA | A trustee-to-trustee transfer | In most cases the new custodian, using a transfer form you sign |
Some plans mail a check. That's fine as long as the check is made out to your new custodian "for the benefit of" you, with your new account number on it. It's still a direct rollover, even if it lands in your mailbox and you forward it.
When the check has your name on it
Then it's an indirect rollover, and three rules kick in:
- 20% withholding. A 401(k) plan has to withhold 20% for federal taxes on most distributions paid to you. To roll over the full amount, you'd have to make up that 20% from other savings.
- The 60-day deadline. You have 60 days to get the money into an IRA. Anything not deposited in time can become taxable, plus a 10% additional tax if you're under 59½ and no exception covers you.
- One per 12 months. You get one indirect IRA-to-IRA rollover in any 12-month period, across all your IRAs. Direct transfers between IRAs and direct rollovers from a 401(k) don't count toward the limit.
Picture what that 20% means. The plan sends you a check for most of your balance and holds back 20% for the IRS. If you want the whole amount rolled over, you've got 60 days to deposit the check plus that missing 20% out of your own pocket, and whatever you can't cover gets treated as a withdrawal. The withheld 20% counts toward your tax bill when you file, so you may see some or all of it back as a refund. That's a long wait for a mistake you didn't need to make.
The IRS lays out the details on its pages about rollovers of retirement plan and IRA distributions and the one-rollover-per-year rule. Our guide on rollovers vs. transfers compares the two.
Step 5: Buy IRS-eligible metal
Once the money arrives, your custodian tells you it's ready, you pick the metal, and the dealer places the order through the custodian. Now the shopping starts.
The IRS only allows metals that meet purity standards: gold at least .995 fine, silver at least .999 fine, and platinum and palladium at least .9995 fine. Certain U.S. Mint coins, such as the American Gold Eagle, are allowed by law even though they fall below .995. Collectible and rare coins don't qualify. The IRS covers this on its page about collectibles in retirement accounts.
At most dealers, common bullion coins and bars carry the lowest markups. Proof coins and anything sold as "premium" or "semi-numismatic" can cost far more, which our guide to coins vs. bullion explains. Before you approve the purchase, get a written quote showing:
- Each product, the quantity, and the price per item
- The spot price of the metal at the time of the quote
- The markup as a percent over spot
- What the dealer would pay you to buy it back today
Step 6: Storage
The dealer ships your metal straight to the depository, not to you. IRA metal has to stay with the custodian or an approved depository while it's in the IRA, and taking personal possession can count as a withdrawal.
You'll pick commingled storage, where your metal sits with others of the same type, or segregated storage, where your exact pieces are kept apart. Segregated costs more at most depositories.
Step 7: Check the confirmations
You'll get a trade confirmation from the dealer or custodian after the purchase, and a while later the depository and custodian confirm the metal arrived, at which point you should line the products, quantities, and prices up against your written quote and make sure every one of them matches. Keep copies. Our guide on what happens after you request a kit shows the paperwork you can expect.
Step 8: The tax forms
A rollover done right isn't taxable. The IRS still hears about it, though, through two forms:
- Form 1099-R from your old 401(k) plan, early the following year. For a direct rollover, it should carry a code showing the money was rolled over. You report the rollover on your tax return.
- Form 5498 from your new custodian, showing what it received. This one tends to show up later than your other tax forms, sometimes as late as May.
A direct transfer between two IRAs usually won't appear on Form 1099-R at all. If a form looks wrong, call the company that sent it before you file, and get a tax professional's help if you're unsure how to report it.
How long will it take?
It depends on the plan and custodian, but two to four weeks is a fair guess, and some take longer.
| Stage | Rough time (it differs by plan) |
|---|---|
| Opening the self-directed IRA | A few days |
| Your old plan or IRA releasing the money to the new custodian | About one to three weeks |
| Buying the metal after the funds arrive at your custodian | Within a few days |
| The metal arriving at the depository after purchase | About one to two weeks |
Plans that want paper forms or notarized signatures tend to be slower.
Where rollovers go wrong
- The money gets paid to you. That brings withholding, a 60-day clock, and possible taxes. Ask for a direct rollover from the start.
- The wrong account type. Traditional money goes to a traditional IRA, and Roth money goes to a Roth IRA.
- High-markup coins. On a large rollover, that can mean thousands gone on day one. Get the markup in writing.
- Moving too much. Putting a big share of your savings into one asset raises your risk, and gold is no exception. For a sense of scale, see how much gold belongs in a retirement portfolio.
- A missed deadline. The IRS grants relief for a blown 60-day window only in limited cases. Call a tax professional fast.
And a gold IRA isn't right for everyone. If your savings are small or you'll need the money in the next few years, read when a gold IRA is not a good fit before anything else.
Want these steps on one page? Our printable checklist has them in order.
To see what fees and markup would mean for your own amount, run the cost calculator.
Ready to talk with a company? Read on.
The box below shows who we recommend and what the first call looks like.
Common questions
Will I pay taxes on a gold IRA rollover?
Not on a direct rollover or transfer into the same type of account. Traditional to traditional and Roth to Roth are tax-free. Moving traditional money into a Roth IRA is a conversion, and you'd owe income tax on it.
Can I roll over only part of my 401(k)?
Yes, if your plan allows partial rollovers. Plenty of people move just a portion into a gold IRA and leave the rest invested elsewhere, in the old plan or in a regular IRA, so they aren't betting everything on one metal. Ask your plan administrator.
Does the one-rollover-per-year rule apply to my 401(k)?
No. It covers indirect rollovers from one IRA to another. Direct rollovers out of a 401(k) and direct trustee-to-trustee transfers between IRAs don't count.
Can I take the gold home after it's bought?
Not while it's in the IRA; the IRS can treat that as a withdrawal. You can take a distribution of metal later, which is taxable from a traditional IRA except for any after-tax money you put in. Our guide on selling gold or taking it out of an IRA explains how.
Where can I check the rules for my situation?
The IRS covers rollovers in Publication 590-A. Your plan administrator knows your plan's rules, and a tax professional can handle your specific case.
We base our guides on primary sources such as the IRS, the Department of Labor, and federal regulators. Read our editorial policy. Spot an error? Tell us.
