best gold ira rollover

What Happens with My 401k After I Quit My Job?

How Much Money Will You Have Left in Your 401k 
Now Your Finances Are Under Attack

Buying Some Gold Via Your 401k Could Help Mitigate this Attack  

How To protect Your 401k Against Inflation
Will Covid-19 Ravage Your 401k Retirement Pot
Is the Ukraine Crisis Going To Make You A Poor Pensioner 
What Impact Will Biden's Financial Changes Make to Your Future
is your 401k at risk

When you quit your job or change employers and get a new job you need to consider what you are going to do with you 401k retirement plan.

We have listed the options below and believe you should make a positive decision rather than doing nothing.

Options for your 401k when you quite your job include :-

  1. Rolling over your existing 401k into your own personal self-directed Independent Retirement Account (IRA)
  2. Rolling over your current 401k into a new employer’s 401k plan
  3. Leave your 401k with your old employer (often this options availability is dependent on the size of your 401k)
  4. Cash-out your 401k. This is NOT a good idea and could have significant tax implications in most circumstances. Seek professional advice before going down this route.

 

Rolling over your existing 401k into your own personal self-directed IRA

If your new employer does not run a 401k plan for its staff, you might like to rollover your current 401k into a self-directed IRA.  You can also make the same choice even if your new employer does run its’ own 401k plan.

The term “self-directed (SDIRA)” is the term used as you make the decisions as to what type of assets you wish to invest in.

Having the ability to make your own invest decisions is very appealing to many folks.

There are many choices of the types of assets you can put into your IRA including stock bonds, property, and precious metals to name just a few asset types.

Having a SDIRA also allows you to diversify and de-risk how you hold your retirement savings.

Value of Gold Bars

We always recommend trying to keep a diverse selection of assets for your retirement years. A self-directed IRA or a Gold and Precious Metals Self Directed IRA gives you the chance to pick and choose what assets you wish to hold.

Gold and precious metal IRAs provide an excellent means of hedging against inflation as precious metals have historically risen to outstrip inflation. Also, in times of global crisis, people switch some of their funds from stocks and shares into gold and other precious metals. We have written extensively about the benefits of diversification strategies for your retirement savings elsewhere on this site. On each occasion, we suggested opening a gold Ira and rolling over up to around 35% of your 401k 457b or 403 plan into precious metals.

Rolling over your existing 401k into a new employer’s plan

Before considering this option, check that your new employer offers a 401k plan and that you are allowed to participate in their plan. Then check that you can roll over your existing funds or part funds into their plan. Remember, you do not have to roll over the full value of your old retirement plan into your new employers 401k plan, you still have the option to rollover part of the funds into a Self-directed IRA or self-directed gold IRA or precious metals IRA.

Many employers ask employees to work some days or months before they can join the company 401k plan. It, after all, costs them money to set you up, and they want to ensure you are the right person for the job before admitting you into the company 401k plan.

Once your new employer has admitted you to their 401k plan and your 401k account is open, you can then arrange for a “direct transfer”, usually by completing a simple form. The fund value will be transferred from your old 401k custodian to the new 401k custodian.

This direct transfer method avoids you incurring any taxes.

There is a second option to withdraw and redeposit the money, called an “indirect transfer”. When using an indirect transfer, the old custodian issues you a check or wire transfer to your personal bank account.

To avoid any possible taxes, you must redeposit all the funds into the new company scheme within 60 days. If you fail to do the transfer of all of the funds received, you will be liable to federal taxes and, potentially state taxes and a 10% early withdrawal levy.

If you are below the age of 59.5, your old employer will be forced to hold the federal tax portion of the money you are transferring at 20% and potentially the State taxes if applicable in the State you reside in.

As well as rolling over all of your 401k to a new employer, you could split the fund and roll over a portion to your new employer and a portion into a self-directed IRA or self-directed Gold IRA.

As mentioned above, the self-directed gold IRA can be a great way of diversifying your retirement saving and providing a hedge against inflation and other disaster or political, fiscal changes.

Cash Out your 401k

Before considering this option, check that your new employer offers a 401k plan and that you are allowed to participate in their plan. Then check that you can roll over your existing funds or part funds into their plan. Remember, you do not have to roll over the full value of your old retirement plan into your new employers 401k plan, you still have the option to rollover part of the funds into a Self-directed IRA or self-directed gold IRA or precious metals IRA.

Many employers ask employees to work some days or months before they can join the company 401k plan. It, after all, costs them money to set you up, and they want to ensure you are the right person for the job before admitting you into the company 401k plan.

Once your new employer has admitted you to their 401k plan and your 401k account is open, you can then arrange for a “direct transfer”, usually by completing a simple form. The fund value will be transferred from your old 401k custodian to the new 401k custodian.

This direct transfer method avoids you incurring any taxes.

There is a second option to withdraw and redeposit the money, called an “indirect transfer”. When using an indirect transfer, the old custodian issues you a check or wire transfer to your personal bank account.

To avoid any possible taxes, you must redeposit all the funds into the new company scheme within 60 days. If you fail to do the transfer of all of the funds received, you will be liable to federal taxes and, potentially state taxes and a 10% early withdrawal levy.

If you are below the age of 59.5, your old employer will be forced to hold the federal tax portion of the money you are transferring at 20% and potentially the State taxes if applicable in the State you reside in.

As well as rolling over all of your 401k to a new employer, you could split the fund and roll over a portion to your new employer and a portion into a self-directed IRA or self-directed Gold IRA.

As mentioned above, the self-directed gold IRA can be a great way of diversifying your retirement saving and providing a hedge against inflation and other disaster or political, fiscal changes.

How to Rollove your 401k to a Gold & Precious Metals IRA

what to do with my 401k when i quit my job
  1. Get your personal gold IRA Information Guide
  2. Choosing the best gold IRA company for your needs
  3. Get the gold company to help you to open a Self Directed Gold Individual Retirement Account SDIRA
  4. Rollover what ever portion of your 401k into the gold IRA without incurring any tax penalty

 

Get In Touch

Name
This field is for validation purposes and should be left unchanged.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram