Can I Use an Existing 457(b) to Fund a Precious Metal IRA?

If you have a retirement plan from a previous employer or if you retire or change jobs, you can transfer funds from your employer's plans, such as a 401 (k), 403 (b), 457 (b) or TSP plan, to a self-directed IRA to buy precious metals. An investor can have multiple IRAs, but no matter how many you have, your total annual contribution limits remain the same. If you already have an IRA or 401 (k), you can deposit funds into an IRA by transferring the full or partial amount. As the funds go to another tax-advantaged account, there will be no tax penalties.Equity Trust will facilitate this process by following your instructions.

At any time, you can choose to remove your precious metals from the warehouse's storage facilities for full or partial distribution. Gold and other precious metals are considered a hedge against inflation and may increase in value during periods of stock market volatility. You don't want to finance a gold IRA with cash because you've already paid taxes on that money, and the goal of using an IRA as an investment vehicle is to take advantage of the tax advantage of using the money before taxes.Custodians also work with several suppliers, such as SchiffGold, to offer and facilitate specific and permitted investments in precious metals under the internal tax code. People who believe that physical possession of gold or other precious metals is safer can get that peace of mind with a gold or silver IRA.

Although it's legally allowed, very few 401 (k) plan administrators offer gold or physical precious metals as an investment option within the plan. Conventional plans generally do not allow diversification into physical gold due to the special circumstances that accompany the ownership of precious metals.After choosing a precious metals merchant or platform, instruct your depositary to purchase whatever coin or ingot products you want. While you are employed by the company that sponsors the 457 (b) plan, physical precious metals may not be an investment option available to you. To buy precious metals in physical form as part of your retirement planning, you'll first need to open a new account with a trustee that allows for self-directed retirement plans.

There are many other plans and many others can be used, in one way or another, to buy gold and precious metals.With the limited options available in 457 plans, reassigning all or part of your 457 plan to other retirement vehicles, such as a precious metals IRA, could help protect your future. The general view is that you should limit your investment in precious metals to between 5 and 10% of your total portfolio to achieve adequate diversification. You can receive distributions from your IRA in the form of physical gold, silver, platinum, or palladium, depending on the metals in your account. Diversifying your retirement portfolio could help protect you from the potential risk and volatility of any type of asset, which is why many people choose to buy precious metals in their IRA.