With Fidelity, your retirement account can invest in gold, silver and other precious metals. The company offers IRA plans for both self-directed IRAs and employer-sponsored accounts. Yes, Fidelity customers can purchase certain precious metals within an IRA. Although 401 (k) plans don't allow full gold investment, there are many other ways to incorporate gold exposure into your portfolio.
One method includes investing in mutual funds that contain gold companies. You can also transfer your 401 (k) to a self-directed IRA under the permissible conditions, where you can invest directly in gold bars and coins. Standard custodians, such as Fidelity, Schwab, or TD Ameritrade, will not handle physical gold in an IRA. Therefore, if you want to keep gold in your IRA, you must first set up a self-directed IRA and then you have to find a custodian who specializes in self-directed gold IRAs.
A quick Google search for “self-directed gold rage yields a lot of results. I know that American Bullion has been around for years, just like APMEX. If you suddenly needed gold to barter for food, you would first need to call your custodian and complete the necessary documentation to access your own gold. To convert your 401 (k) to gold, you'll need to leave the company you work for and then transfer your 401 (k) to a self-directed IRA.
The tax code also says that gold or silver must be in the possession of a custodian or trustee approved by the IRS, although some gold IRA sellers claim that there is a legal loophole in this law (we'll talk about this later). If you really think it's a good idea, at least check the IRS rules and custodian's fees before you put gold into your IRA. What is confusing and frustrating is that some gold coins and bullion types are allowed, while others are not. Proponents of gold IRAs argue that these costs deserve the peace of mind of protecting themselves from a potential financial apocalypse.
It is essential to understand several other stipulations before buying gold or other precious metals through Fidelity. Required Minimum Distributions Once you turn 70 and a half, your gold IRA will be subject to a mandatory minimum distribution (RMD), just like any other IRA other than ROTH. If you read the extremely small print here, you will learn that instead of selling you physical precious metals, Fidelity passes your order to an affiliate, FideliTrade. That's why even investors who generally prefer gold, such as Russ Koesterich, a portfolio manager at the BlackRock Global Allocation Fund, advise you to treat precious metals with the same caution as with any other physical asset, such as real estate.
Yes, you earn some interest on that money that you won't earn on gold and silver, but the likelihood that that asset will rise is much greater than your cash. Bullion bars and gold and silver rounds are also allowed in an IRA when they are 99.9% pure. One thing investors should keep in mind is that most 401 (k) retirement plans don't allow direct ownership of physical gold or gold derivatives, such as futures contracts or options. A 401 (k) plan with a brokerage option gives individual investors the freedom to invest in a much wider range of assets through a regular brokerage account, thus providing access to all types of gold investments.
Fidelity offers its customers a retirement account option where gold and precious metals can be stored.
