Rolling a 401(k) to a gold IRA is a four-step process: (1) open a self-directed IRA with a custodian that allows precious metals; (2) request a direct rollover from your 401(k) administrator (avoid indirect rollovers, the 60-day rule and 20% withholding create costly traps); (3) instruct the custodian to purchase IRS-approved gold from a dealer; (4) the dealer ships the metal to an approved depository for storage. The whole rollover takes 2-4 weeks and triggers no tax if done as a direct trustee-to-trustee transfer.
The first decision is which IRA structure to use. A standard IRA can't hold physical metals, you specifically need a self-directed IRA with a custodian that allows precious metals as an asset class. Major custodians in this space include Equity Trust, GoldStar Trust, and STRATA Trust. Setup fees run $50-$80; ongoing custodian fees are $75-$300 per year.
Always request a direct rollover (sometimes called a 'trustee-to-trustee transfer'). The funds move directly from your 401(k) to the new IRA without you ever taking possession. An indirect rollover, where the 401(k) sends a check to you and you have 60 days to redeposit it, triggers mandatory 20% federal withholding, and if you miss the 60-day window, the entire amount becomes taxable plus a 10% early withdrawal penalty if you're under 59½.
Once funds are in the self-directed IRA, you instruct the custodian to wire payment to a precious metals dealer for IRS-approved bullion. Approved metals must meet purity standards: gold must be 99.5% pure (American Gold Eagles are an exception at 91.67%), silver 99.9%, platinum and palladium 99.95%. The dealer ships the metals directly to an IRS-approved depository. Delaware Depository and Brink's are the two largest.
Watch out for two common scams: (1) 'home storage IRAs', the IRS does NOT allow home storage of IRA-held metals, despite aggressive marketing claiming otherwise; storage at home triggers a deemed distribution and full taxation; (2) high-premium numismatic coins, some dealers push collectible coins at 30-50% markups over spot price, which is mostly profit margin going to the dealer, not value going into your account.
Key facts
- Direct rollover: trustee-to-trustee transfer, no withholding, no 60-day window, no tax
- Indirect rollover: 20% federal withholding, 60-day deadline to redeposit, full balance
- Self-directed IRA custodian setup fee: typically $50-$80
- Annual custodian + storage fees: typically $200-$500/year combined
- IRS-approved gold purity: 99.5% (American Gold Eagles excepted at 91.67%)
- Home storage of IRA gold: NOT allowed, triggers full distribution and taxes
Can I roll over a 401(k) from my current employer?
Generally only if you're 59½ or older (most plans allow in-service rollovers at that age) or if you've separated from the employer. Check your specific plan document, some employers allow earlier in-service rollovers; most don't. If you're still actively employed and under 59½, you'll typically need to wait until separation before rolling assets out.
How long does a 401(k) to gold IRA rollover take?
Typical timeline: 1-2 days to open the self-directed IRA, 5-10 business days for the direct rollover from the 401(k) custodian, 1-2 days to fund the dealer purchase, 5-10 days for the dealer to deliver metals to the depository. Total: roughly 2-4 weeks. Some custodians and dealers move faster; if you're being told it'll take 8+ weeks, that's a red flag worth investigating.