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How to Rollover Solo 401k Retirement Plan to Physical Gold


There are several advantages attached to working as a self-employed person. However, there are some drawbacks as well. One of the major drawbacks has to do with planning for the future with IRA plans.

The good news is that the IRS has figured out this problem and has come up with a plan to help. This is about the solo 401k retirement plan. And for those that do not know it as “solo 401k”, it is also called the “one-participant 401k”.

It helps self-employed persons benefit from the IRA system but there are some peculiarities as expected. You can visit if you are interested in knowing about the peculiarities of this plan by the IRS.

Well, the thing is that many account holders of this plan want more. They understand that investing in certain things will yield better and offer more. Gold is an example of such. But because of the limitations of this plan, they need directives on how to do this.

The first thing you should understand is that it is very possible to roll over your solo 401k for this purpose. We will shed more light on this amongst other things here and advise that you keep reading.

What Is a One-Participant/Solo 401k?

This is an IRA plan that is specifically designed for self-employed persons. By self-employed, we mean people that offer goods and/or services but without (full-time) employees, although this excludes your spouse working with you. The IRS set it up to make sure such people do not miss out on what the regular kind of IRA offers.

It ensures that such people enjoy tax privileges common with the regular plans for instance. This is even what makes it better than many other saving and investment schemes that such people can take advantage of.

Are there Benefits Attached to Solo 401k?

There are tons of benefits attached to participating in solo or one-participant retirement plans. We have stressed one of the major ones above – tax privileges. Others include the following:

Bypassing 3rd Party Custodian

Your IRA plan can be self-directed in 2 ways. There is the option of using a 3rd party custodian and another option of acting as your trustee with the solo 401k plan.

The truth is that going for the solo 401k plan comes with some added responsibilities. You need to be aware of the IRS rules to avoid penalties and complications. However, there are benefits of solo 401k especially in terms of cost and even speedy processing of transactions.

Possibility of Taking out Loans

Taking out loans from your 401k is not always a good idea. But it could be a lifesaver in some situations. Well, this is a possibility for such times.

Experts and experienced people have even realized that the process is better than taking a regular IRA loan. Well, this is an advantage for people that require loans at certain points in time.

However, you need to understand that there are some restrictions on what the borrowed funds can be used for. Knowing this is crucial as it will keep you away from IRS trouble in form of penalties or other undesirable things.

Spousal Privileges

Making the most of this retirement savings plan means that you work for yourself. However, there is a consideration for your spouse even in terms of the benefits that come with this plan. However, you need to understand the limits attached as they are reviewed from time to time.

Rolling Over Your Solo 401k to Physical Gold

We stressed the fact that this plan has some peculiarities that make it different from others. In the same vein, it has tons of similarities with others and we are about to explain one area where this is the case.

This has to do with rolling over the plan to purchase physical gold. It is only a self-directed IRA account that can do this. Other kinds such as SIMPLE, Roth, and this option cannot do this.

This does not mean that other investments are impossible. You should even know that gold investment that does not require physical gold can even be carried out. This is in the form of mining stocks, ETFs, and a few others.

However, you would need to create a self-directed IRA to invest in physical gold. To do this, you would need to:

Work with a Good Dealer

You need to work with professionals that can help you through the process at large. This is starting from flawlessly setting up a self-directed account. The truth is that you need their professional service every step of the way.

Buying with a Custodian

The rule by the IRS explains how this precious metal resource can be gotten and other things. Speaking of how it should be purchased, this is where the custodian comes in. This is the service provider that will facilitate the purchase.

Working with a good dealer will help in getting the custodian to do what needs to be done. So, the need to work with a good one cannot be ruled out.

Appropriate Storage

Penalties from the IRS should be avoided at all costs. Some account holders are penalized because of inappropriate storage. This is especially true as the IRS can view this as an early withdrawal.

On that note, you should know that the IRS has a clear directive on how the physical precious metal asset should be stored. This is in a secure and licensed facility rather than self-storage. There are some reasons for this. For more on this subject, you can read this.

On a Final Note

The solo 401k is a huge advantage for self-employed people. This is because of the several benefits attached to this unique plan as explained here. However, account holders can benefit more when they roll over to purchase physical gold. We have explained this possibility here and advise that you make informed decisions going forward.


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