Exactly how do you do a 401K gold back fund

[mriddick]

The other thread got me thinking about my wifes 401K, we took out a part of her 401k to use a bridge loan to buy our property (used the 60 day rollover rule) and will have to put it back by Christmas. Maybe now is the time to think about a gold backed IRA that qualifies as a 401k so we don't get hit with the tax penalty. Anyone have advice on how to do this in detail, fees, problems or other comments you can share?

[Warthogg]

Go to a proper source PLEASE. (I fear your question is more than timely.)


Wart

[O.S.O.K.]

I think you just go to somebody like Edward Jones and tell them what you want to do and they set it up for you. We are going to pull the money out of ours after the first of the year to put the tax liability on 2012.

[mriddick]

I have my Gold IRA thru Franklin Templeton

Does that qualify for a 401K or is it something you have in conjunction with your other retirement accounts?

[N/A]

You know you can also purchase physical metals for your IRA too
Keep in mind that if & when you sell them the Cap gain on precious metals is 28%
FYI if your 401k is self directed you can purchase any fund

Let me ask this. You buy gold for spot price, but when you sell you are going to be paid below spot price. Gold will have to go up a good percentage before you can sell and make money on the deal?

[N/A]

Rarely is a private person able to even buy at spot. Usually its 10% over to buy & under10% to sell

True, I slipped there. If you bought gold at $1000 an ounce you'd pay $1100 with the 10% charge. It would have to go up a little over $200 an ounce before you would even break even, selling at 90% spot.

[El Laton Caliente]

I'm looking to find it again, it may be on my work computer as a favorite...

There is a firm in Texas, close to Dallas I think, that places your physical IRA gold, silver, palladium, in your safety deposit box and holds it. What you don't want is metal certificates that are a promise to give you the metal on demand. That is what most gold IRAs are...

What you cannot do and remain an IRA is to take possession of the metal. If you do that you have to pay the tax and 10% penalty. It is an option if you do not have a problem with that and want the metal in your gun safe...

[N/A]

. I have found I get a better price selling privately than to a dealer. I sell at spot

That would be the only way us small guys would make money on it as an investment. Otherwise, it's just an inflation equalizer over the long haul.
And if you live in Texas, you can save paying the sales tax if you buy at least $1000 in a single transaction.

[N/A]

I like silver better too. But I just piddle in it.

[N/A]

Hey, thanks. I'll start checking that out.

[insider]

You can roll your 401k into a gold/silver backed IRA with no tax penalty. Best move I ever made! My 401k was losing money, now I'm up 6.8% in less than a month. Don't put it all into metals, get some junior mining stocks too.

[Warthogg]

.......get some junior mining stocks too.

I continually read the junior mining stocks are the better investment now.


Wart