# How Come You Should Move Your 401(k) to a Gold IRA?

If you've never heard of a Gold IRA, you're probably wondering what it is and how it works. A Gold IRA is essentially a self-directed retirement plan that contains actual gold. The regular IRA regulations apply, which state that you cannot withdraw your gold until you are 59 12 years old.

Contributions to your Gold IRA are also tax-deductible. The yearly contribution maximum for Gold IRAs for persons under the age of 50 is $6,000 as of 2022. The maximum for people over the age of 50 is $7,000.

Here are 5 of the most compelling reasons to consider rolling over your 401K into a Gold IRA right now:

**1) Make Your Retirement More Diverse**

When saving for retirement, you want to ensure that your portfolio is safeguarded against major market downturns. The stock market in the United States has had three significant collapses in the last 25 years. Holding part of your retirement funds in gold can protect some of your retirement funds against major stock market disasters.

**2) Avoid assets denominated in US dollars.**

You don't want all of your assets to be in one currency. This is because you can't afford to lose a lot of buying power if the value of that currency falls. For example, suppose you have all of your retirement funds in a currency that loses 5% of its value every year and your retirement fund return 6% on average. In actual, inflation-adjusted terms, you are only earning 1% per year in retirement. By investing a portion of your retirement funds in a Gold IRA, you will have access to a tangible precious metal that has traditionally held its value against all currencies.

**3). Maintain Long-Term Purchasing Power**

When investing for the long run, you want to keep your wealth's buying power. For thousands of years, gold has kept its worth. When compared to currencies with a lifetime of one or two generations. With a Gold IRA, you can nearly guarantee that a portion of your retirement funds will retain their value over time.

**4). Make Room in Your 401k**

As you are undoubtedly aware, there are contribution restrictions to retirement accounts. You may make room for a new 401K account by rolling over your 401K into a Gold IRA. This may significantly increase your retirement money.

**5). Long-Term Inflation Protection**

Most people despise the idea of inflation. It may, however, happen anywhere in the globe. Back in the 1970s, the United States had double digital inflation, which hampered the stock market and caused gold prices to skyrocket. If long-term inflation occurs over the next several decades, your physical gold assets in your Gold IRA will more than compensate for any losses in your stock holdings.

**About rollover a 401k to gold**

[Rolling over a 401k to gold](https://goldadvocacygroup.org/how-to-convert-your-401k-or-ira-to-a-physical-gold-ira-and-why-you-may-want-to/) is the process of transferring funds from a traditional 401k account to a self-directed IRA or 401k that invests in gold. This is a popular strategy for those who want to diversify their retirement portfolio and are worried about the long-term viability of the dollar.
