Gold IRA Rollover: Moving Your 401(k) to Precious Metals

If you have a 401(k) sitting with a former employer—or even a current one—you may have wondered whether you can redirect some of those retirement savings into physical gold or other precious metals. The answer is yes, and the process is called a gold IRA rollover. Done correctly, it is a tax-free event that lets you diversify your retirement portfolio with tangible assets that have held value across centuries of economic upheaval.

This guide walks through everything you need to know before initiating a rollover: what qualifies, how the mechanics work, what the IRS demands, and where most people stumble.

What Is a Gold IRA Rollover?

A gold IRA rollover is the process of moving funds from an existing retirement account—such as a 401(k), 403(b), 457 plan, Thrift Savings Plan, or traditional IRA—into a self-directed IRA that holds physical precious metals. The receiving account is structured like any standard IRA from a tax perspective, but it is administered by a specialized custodian who arranges for the metals to be purchased and stored in an IRS-approved depository on your behalf.

The metals themselves never land in your hands during the process. That distinction matters enormously for tax treatment, as we will cover shortly.

Which Accounts Can Be Rolled Over?

Most tax-advantaged retirement accounts are eligible for a rollover into a gold IRA, including:

• Traditional 401(k) plans from current or former employers
• Roth 401(k) plans (rolled into a Roth gold IRA)
• 403(b) plans (common for teachers and nonprofit employees)
• 457(b) governmental plans
• Federal Thrift Savings Plans (TSP)
• Existing traditional or SEP IRAs
• SIMPLE IRAs (after a mandatory two-year holding period)

Roth IRAs can also be moved into a Roth gold IRA, preserving your tax-free growth status. If you roll a traditional 401(k) into a Roth gold IRA, however, you will owe income taxes on the converted amount in the year of the conversion—so that decision warrants careful planning with a tax advisor.

Direct Rollover vs. Indirect Rollover

The IRS recognizes two methods for moving funds between retirement accounts, and choosing the wrong one can cost you dearly.

Direct Rollover (Trustee-to-Trustee Transfer)

In a direct rollover, your existing plan administrator sends the funds directly to your new gold IRA custodian. You never touch the money. There is no withholding, no tax event, and no 60-day deadline to worry about. This is the cleanest and safest method, and it is what most reputable gold IRA companies will guide you through.

Indirect Rollover

In an indirect rollover, the plan administrator cuts a check to you. You then have 60 calendar days to deposit those funds into your new gold IRA. If you miss that window, the IRS treats the entire distribution as ordinary income, subject to income taxes plus a 10% early-withdrawal penalty if you are under age 59½.

There is an additional complication: when the check is issued to you from a 401(k), the plan is required to withhold 20% for federal taxes. To complete a full rollover and avoid taxes on that withheld portion, you must deposit 100% of the original distribution—making up the withheld 20% out of your own pocket. You recoup the withheld amount when you file your tax return, but only if you deposited the full amount on time.

The IRS also limits indirect rollovers to once per 12-month period across all your IRAs. Direct rollovers carry no such restriction.

Step-by-Step: How to Initiate a Gold IRA Rollover

Step 1 — Open a Self-Directed IRA

Choose a custodian that specializes in self-directed IRAs holding physical precious metals. This is not your typical brokerage or bank. The custodian handles compliance, record-keeping, and coordinates with the depository where your metals will be stored.

Step 2 — Contact Your Current Plan Administrator

Notify your 401(k) plan administrator or existing IRA custodian that you intend to initiate a rollover. They will provide the required paperwork and, for a direct rollover, will wire or mail funds directly to your new custodian. Obtain the exact wiring instructions and account information from your new gold IRA custodian to hand off to the sending institution.

Step 3 — Fund the Account

Once the funds arrive at your new self-directed IRA custodian, they will be held in cash inside the account until you direct a purchase. This is normal; you are not yet exposed to metals prices at this stage.

Step 4 — Select Your Metals

Work with your custodian and a reputable metals dealer to select IRS-approved coins and bars. Not all gold or silver products qualify. The IRS sets specific purity standards: gold must be at least .995 fine, silver at least .999 fine (with limited exceptions for certain coins like the American Gold Eagle, which is .9167 fine but explicitly approved by statute).

Step 5 — Arrange Storage

Your custodian coordinates delivery of the purchased metals to an IRS-approved depository. You choose between segregated storage (your metals stored separately, in your name) and commingled storage (your metals stored alongside other clients' holdings). Segregated storage typically costs more but provides clear ownership documentation.

Common Mistakes to Avoid

Taking personal possession of the metals. This is the single most costly error. If metals are shipped to your home rather than to an approved depository, the IRS treats that as a distribution. You owe income taxes and, if under 59½, the 10% penalty on the full value.

Missing the 60-day indirect rollover deadline. Circumstances happen, but the IRS grants very few hardship waivers. Default to direct rollovers to eliminate this risk entirely.

Choosing non-qualifying metals. Collectible coins, certain foreign coins, and metals below IRS purity thresholds are disqualified. Purchases of non-qualifying metals inside an IRA are treated as distributions.

Working with an inexperienced custodian. Not every firm advertising gold IRAs has deep experience with IRS compliance. Verify that any custodian you consider is properly regulated and has a track record of handling self-directed accounts.

How Long Does a Rollover Take?

A direct rollover from a 401(k) to a self-directed gold IRA typically takes two to four weeks from start to finish, though this varies by plan administrator. Some former employer plans have bureaucratic delays; others process requests within days. Once funds arrive at your new custodian, the metals purchase and delivery to the depository usually completes within a few additional business days.

Is a Gold IRA Rollover Right for You?

A gold IRA rollover makes the most sense for investors who want to reduce their exposure to paper assets and add a non-correlated store of value to their retirement portfolio. Gold has historically performed well during periods of high inflation, currency devaluation, and equity market stress—precisely the scenarios that can devastate a portfolio concentrated in stocks and bonds.

That said, gold produces no dividends or interest. Its price can be volatile over shorter time horizons. Most financial planners recommend allocating no more than 5–15% of a retirement portfolio to precious metals, though the appropriate percentage depends entirely on your age, risk tolerance, and overall financial picture.