Rolling a 401(k) into physical gold

Why a 401(k) cannot simply hold gold

FACT. Employer plans offer a fixed menu — usually mutual funds and company stock — and physical bullion is essentially never on it. Some plans include a gold or mining fund, which is exposure to a paper position rather than metal you could take delivery of. To hold IRS-eligible bullion with retirement dollars, the money moves into a self-directed IRA where an approved custodian holds the account and an approved depository holds the metal.

• Plan menus rarely include physical metal; a gold fund is not the same thing
• A self-directed IRA is the standard vehicle that permits eligible bullion
• The custodian and depository are independent of Capstone

Check eligibility first

One call to your plan administrator answers it, and there are only two questions: is a direct rollover to an IRA available, and does the plan allow in-service distributions? Former-employer 401(k), 403(b), 457(b) and TSP balances are usually fully eligible. We will tell you exactly what to ask so you are not guessing on the phone.

Avoid the 20% withholding trap

FACT. If a 401(k) pays you directly, the plan must withhold 20% for federal tax — and to stay whole you must redeposit the full pre-withholding amount within 60 days, covering that 20% from other money until you recover it at filing. Miss the deadline and the shortfall becomes taxable income, plus a 10% additional tax if you are under 59½. A direct trustee-to-trustee rollover avoids every part of this.

You don't have to move everything

Many plans allow partial rollovers, so you can allocate a portion to metals and leave the remainder invested where it is. Most clients who convert do so partially — this is a diversification decision, not an exit.

What it costs, stated plainly

There is a custodian account fee, an annual storage fee at the depository, and a premium over the spot price on the bullion itself. Capstone quotes prices rather than charging cards, and no figure is hidden until after you commit. A conversion that surprises you later is a bad conversion.

Whether you should, not just how

Most people researching this are really deciding whether to act at all. Because Capstone has licensed financial advisors on staff, that conversation can cover the whole picture — the plan, other holdings, income needs, insurance and estate structure — instead of metals alone. If a rollover is not right for you, we would rather say so than process one.

Doing this with a firm you can actually reach

A conversion involves your plan administrator, an independent custodian and a depository, and the person who keeps those three moving matters more than any brochure. Capstone Metals is operated by TB Alternative Assets LLC, a California-registered company, and works with families across the United States by phone and text — (800) 200-9553, Monday to Friday, 7am to 4pm Pacific. The same number reaches us whether you want a quote, a rollover walked through, or a second opinion on paperwork another firm sent you.

• One number, staffed by the people who do the work — not a call centre
• Preferred Trust Company and GoldStar Trust Company hold the account; they are independent of us
• Written figures before you commit, and no card charged at any point