Investing in physical gold through a Precious Metals IRA is not only a great way to diversify your retirement savings, but it also protects them from stock market volatility and inflation. It’s no wonder why many investors are choosing to roll over their 401k into a gold IRA. But before you begin investing in gold, there are a few things you should know.

To execute a 401k gold rollover, you’ll need to find a custodian for your new Gold Individual Retirement Account (IRA). A precious metals IRA is an IRS-approved account that allows its holders to buy physical bullion coins and bars directly. The process is typically handled by a specialist precious metals IRA custodian, like Birch Gold Group.

It’s best to make a direct transfer to your new Gold IRA, as this is the most tax-efficient method. This involves your 401k plan trustee sending you a check that you then transfer to your new Gold IRA within 60 days, in order to avoid being classified as a taxable withdrawal.

Diversify and Protect: The Benefits of a Physical Gold IRA for Retirement Planning

Indirect rollovers are less efficient, but still possible. With this method, your 401k plan trustee will send you a check that you then deposit into your new Gold IRA within 60 days, as well. You can also move your 401k investments into a Roth IRA, which does not have the same restrictions on purchasing physical gold. However, it’s important to consult with a financial advisor before you decide to change your retirement savings account.