How to Roll Over Your 401(k) to a Gold IRA
A step-by-step guide to moving your retirement funds into physical gold—without triggering taxes or penalties. Updated for 2025 IRS rules.
🔑 Key Points
- • Direct rollover = funds go straight to new custodian (recommended)
- • Indirect rollover = you receive funds, must deposit within 60 days
- • No taxes or penalties with proper direct rollover
- • 2025 IRA contribution limit: $7,000 ($8,000 if 50+)
- • No limit on rollover amounts
What Is a Gold IRA Rollover?
A Gold IRA rollover is the process of transferring funds from an existing retirement account (401(k), traditional IRA, 403(b), TSP, etc.) into a self-directed IRA that holds physical gold and other precious metals.
When done correctly, this is a tax-free, penalty-free transfer. Your retirement savings remain tax-advantaged—you're simply changing what those savings are invested in.
Accounts You Can Roll Over
✓ Eligible
- • 401(k) from former employer
- • Traditional IRA
- • 403(b)
- • 457(b)
- • TSP (Thrift Savings Plan)
- • SEP IRA
- • SIMPLE IRA (after 2 years)
✗ Limitations
- • Current employer 401(k) (usually)
- • Must be 59½ or separated from employer
- • Some plans require full separation
- • Check your plan's specific rules
Direct vs. Indirect Rollover
This is the most important decision in the rollover process:
✓ Direct Rollover (Recommended)
- • Funds transfer directly between custodians
- • You never touch the money
- • No taxes withheld
- • No 60-day deadline
- • No limit on how often you can do this
- • Virtually no risk of penalties
This is what you want.
✗ Indirect Rollover (Risky)
- • Check made out to you
- • 20% mandatory tax withholding
- • Must deposit 100% within 60 days
- • Must make up the 20% from other funds
- • Only 1 allowed per 12-month period
- • Miss deadline = taxes + 10% penalty
Avoid if possible.
⚠️ The 60-Day Trap
With indirect rollovers, if you fail to deposit the full amount (including the 20% withheld) within 60 days, the IRS treats it as a distribution. You'll owe income tax on the full amount plus a 10% early withdrawal penalty if under 59½.
Step-by-Step Rollover Process
Choose a Gold IRA Company
Research and select a reputable Gold IRA company. They'll help you open your self-directed IRA and guide you through the rollover. Look for A+ BBB rating, transparent fees, and strong customer reviews.
Open Your Self-Directed IRA
Your Gold IRA company will help you open a self-directed IRA with an approved custodian (like Equity Trust or STRATA Trust). This takes 1-3 business days. You'll provide ID, beneficiary info, and sign account documents.
Request the Rollover
Contact your 401(k) plan administrator and request a direct rollover to your new self-directed IRA. Your Gold IRA company can provide the receiving account details. The administrator will have forms for you to complete.
Fund Transfer (1-3 Weeks)
Once approved, funds transfer from your old account to your new Gold IRA. This typically takes 1-3 weeks. Your Gold IRA company can track progress and expedite if needed.
Purchase Precious Metals
Once funds arrive, you'll work with your Gold IRA company to select IRS-approved precious metals (gold, silver, platinum, palladium). Your custodian executes the purchase and arranges secure storage at an approved depository.
IRS Rules You Must Follow
| Rule | Requirement |
|---|---|
| Gold Purity | Must be 99.5% pure (exception: American Gold Eagles at 91.67%) |
| Silver Purity | Must be 99.9% pure |
| Storage | Must be held at IRS-approved depository (not at home) |
| Custodian | Must use IRS-approved custodian for self-directed IRA |
| Contribution Limit (2025) | $7,000/year ($8,000 if 50+) — but no limit on rollovers |
| RMDs | Required Minimum Distributions start at age 73 |
Tax Implications
Traditional 401(k) → Traditional Gold IRA
No taxes due at rollover. Taxes paid when you take distributions in retirement.
Traditional 401(k) → Roth Gold IRA
This is a Roth conversion. The entire amount becomes taxable income in the year of conversion. Consider spreading over multiple years to manage tax brackets.
Roth 401(k) → Roth Gold IRA
No taxes due. Money grows tax-free and distributions are tax-free in retirement.
Rollover Checklist
- ☐ Confirm eligibility (left employer or age 59½)
- ☐ Research and choose a Gold IRA company
- ☐ Open self-directed IRA with approved custodian
- ☐ Request DIRECT rollover from 401(k) administrator
- ☐ Wait for funds to transfer (1-3 weeks)
- ☐ Select IRS-approved precious metals
- ☐ Confirm metals are stored at approved depository
- ☐ Keep all paperwork for tax records