401(k) to gold IRA: what to check

Check eligibility with the plan

An existing employer’s 401(k) may restrict in-service distributions. Former-employer plans can have different options. Ask your administrator what is eligible and what is not.

Prefer clarity on the transfer route

A direct rollover can avoid funds being paid to you. If funds are paid to you, withholding and a 60-day deadline may apply.

Know what cannot roll over

Required minimum distributions and certain other payments are ineligible. Roth and pretax funds have distinct rules and conversion consequences.

Verify the destination

Confirm the receiving IRA accepts the intended investment, and ask the custodian and a tax professional to review the transaction before moving funds.

Check the plan first

An old employer's 401(k) may permit a distribution or direct rollover; a current employer's plan may limit access until a triggering event or offer only certain in-service distributions. Contact the plan administrator for the summary plan description and distribution options.

Ask whether the balance contains pre-tax, Roth, employer, or after-tax components. Different components may require different receiving accounts and tax reporting.

Why the payee matters

A direct rollover should follow the administrator's instructions and make funds payable to the receiving trustee for your benefit. If money is paid to you, withholding and a 60-day deadline can complicate the transaction. Required minimum distributions are not eligible for rollover.

Have the receiving IRA custodian confirm exact check instructions before requesting a distribution. Keep transaction confirmations and the relevant tax forms.

Decide whether a rollover serves your needs

Compare the 401(k)'s existing investment choices, fees, creditor protections, and withdrawal features with the proposed IRA. Moving money solely to buy gold may sacrifice useful plan benefits or increase costs.

A rollover is not required to maintain retirement savings. A qualified financial or tax adviser can help assess whether moving all, some, or none of the account is appropriate.

Before you make a decision

Use these questions to turn the information above into a documented comparison rather than relying on a sales conversation.

• What written evidence supports the key claims in “check the plan first”?
• How would the costs, constraints, or risks in “why the payee matters” affect my own situation?
• Which details in “decide whether a rollover serves your needs” must I confirm with the custodian, provider, or independent adviser?

Frequently asked questions

Can I move a current employer's 401(k)?

Possibly, but the plan's distribution provisions control whether and when an in-service distribution is available.

Must I move the whole account?

Not necessarily. Whether a partial eligible rollover is available depends on plan rules and your circumstances; ask the administrator.