Solo 401(k) Gold Rollover: 6 Step Rollover Guide

Author: Focus on the User | 5 min read | Updated
Roll Over Solo 401(k) to Gold IRA

A Solo 401(k) cannot directly hold physical gold, but self-employed individuals and small business owners can convert their Solo 401(k) into a self-directed Gold IRA (Gold SDIRA). This type of IRA allows investments in approved precious metals, offering greater diversification and control over retirement funds.

Before starting a Solo 401(k) rollover to a Gold IRA, understand its eligibility, tax implications, benefits, steps, best companies, and costs you will face during this process. Focus on the User covers everything you need to know about this rollover process for Solo 401(k)s below.

Focus on Key Takeaways
  • To roll over your Solo 401(k) to a Gold IRA, you need to set up a self-directed IRA and work with a qualified Gold IRA company.
  • A Solo 401(k) does not permit direct gold investments but can be rolled over to hold gold bullion, coins, and other approved metals.
  • Solo 401(k) accounts are specifically designed for self-employed individuals or small business owners with no full-time employees.
Gold Solo 401(k) Rollover

What is a Gold Solo 401(k) Rollover?

A Gold Solo 401(k) Rollover allows self-employed individuals or small business owners with a Solo 401(k) to transfer their retirement savings into a Gold IRA, enabling investment in physical gold and other precious metals. This process requires setting up a self-directed IRA through a custodian who manages the account and ensures compliance with IRS regulations.

The rollover provides an opportunity to diversify retirement portfolios by including gold as a hedge against inflation and market volatility, while retaining the tax-deferred benefits of traditional retirement accounts.

Eligibility

To be eligible for a Gold Solo 401(k) Rollover, the account holder must typically be self-employed or a small business owner with no full-time employees, except for a spouse. Eligibility also depends on either reaching the age of 59½ or meeting specific IRS criteria, such as leaving self-employment or the business closing.

Tax Implications

A Gold Solo 401(k) Rollover can be completed tax-free if done correctly through a direct rollover, which transfers funds directly from the 401(k) to the Gold IRA. This ensures continued tax-deferred growth. However, improper handling, like taking possession of the funds, can lead to early withdrawal penalties and taxes. It's crucial to follow IRS rules to avoid these tax liabilities, ensuring the rollover is completed without triggering penalties.

Benefits of Rolling Over Your Solo 401(k) to a Gold IRA

Diversifying your Solo 401(k) into precious metals such as gold offers many benefits to keeping your savings safe and secure.

  • Enhanced Diversification: Expand beyond traditional stock-based assets by adding gold to your retirement portfolio.
  • Protection Against Market Volatility: Gold provides a stable asset in times of economic uncertainty, mitigating risks specific to stocks.
  • Self-Directed Flexibility: A Gold IRA offers increased flexibility for self-employed individuals in managing their retirement assets.
  • Inflation Hedge: Gold retains value over time, protecting purchasing power as the cost of living rises.

See all pros and cons of Gold IRAs, understand exactly what makes these IRAs so unique.

Solo 401(k) vs Gold IRA

Solo 401(k)Gold IRA
Investment TypeStocks, bonds, mutual fundsPhysical gold and other precious metals
Inflation ProtectionLimited, depends on market performanceStrong protection due to gold’s value stability
DiversificationPaper assets primarilyPhysical gold diversifies beyond paper assets
Control Over InvestmentsHigh, but limited to traditional assetsHigh, with options for specific gold products
Can Hold GoldNoYes
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FotU Guide

How to Roll Over Your Solo 401(k) to a Gold IRA

The process of converting your Solo 401(k) to a Gold IRA requires careful planning. A Gold IRA company can guide you through each step. Here’s what to expect:

  1. Check Eligibility: Confirm if your Solo 401(k) allows a rollover, typically permitted after reaching the age of 59½ or leaving your business.
  2. Select a Gold IRA Company: Choose a reliable Gold IRA provider experienced in Solo 401(k) rollovers and secure storage options.
  3. Open a Gold IRA: Set up a new self-directed Gold IRA with the chosen provider to receive the rollover funds.
  4. Initiate the Solo 401(k) Rollover: Request the rollover of funds from your Solo 401(k) to the newly opened Gold IRA.
  5. Choose Gold Assets: Decide on eligible gold products, such as approved coins or bars, in consultation with your Gold IRA provider.
  6. Buy Gold For New Gold IRA: Purchase the selected gold, which will be transferred and stored securely in your Gold IRA.

The rollover process for Solo 401(k)s is very similar to how IRAs are rolled over to Gold IRAs. These steps provide you an easy way to understand how the entire process will go about with your chosen Gold IRA company.

Fees

When rolling over your Solo 401(k) to a Gold IRA, you’ll encounter fees such as setup fees, annual maintenance fees, storage fees, and transfer or rollover fees. The costs listed below outline the typical expenses you can expect during the rollover process.

Fee TypeRangeDetails
Setup Fees$50 to $300Covers the initial account creation.
Annual Maintenance Fees$80 to $300 per yearCharged for ongoing account management.
Storage Fees$100 to $500+ per yearEnsures secure storage for your gold, either segregated or non-segregated.
Transfer/Rollover Fees$25 to $260Incurred when moving your Solo 401(k) funds to a Gold IRA.

Fees can vary depending on the Gold IRA company, the type of account, storage options, and the service level you choose. We cover all the fees you can expect in your Gold IRA in a complete list.

Common Mistakes to Avoid During Solo 401(k) to Gold IRA Rollover

When rolling over your Solo 401(k) to a Gold IRA, it's important to be mindful of potential mistakes that can result in taxes, penalties, or improper handling of your retirement savings. Below are key mistakes to avoid during the process:

  • Not opting for a direct rollover, which could lead to taxes and penalties.
  • Choosing an unapproved custodian or trustee that is not IRS-compliant for Gold IRAs.
  • Failing to meet the IRS purity requirements (99.5% for gold).
  • Missing the 60-day deadline if you're doing an indirect rollover, risking taxes and penalties.
  • Overlooking fees such as setup, storage, and annual maintenance costs.
  • Not diversifying your portfolio and placing all your funds into gold without considering other investments.
  • Ignoring IRS contribution and distribution rules, including Required Minimum Distributions (RMDs).

To avoid these pitfalls, it’s recommended to consult a financial advisor and work with a trusted Gold IRA provider to ensure a smooth Solo 401(k) rollover process without penalties or unnecessary costs.

Storage Requirements

When rolling over your Solo 401(k) to a Gold IRA, the IRS requires that your physical gold be stored in an approved storage facility. You have two primary storage options: Segregated (Allocated) Storage and Non-Segregated (Commingled) Storage, each with distinct costs and benefits.

Segregated Storage (Allocated Storage)

Segregated Storage (Allocated Storage)

In Segregated Storage, your gold is kept separate from other investors’ assets in its own designated space. This option ensures that the exact gold you purchased will be the same gold returned to you upon liquidation. It offers the highest levels of security and privacy, with annual fees typically ranging from $100 to $300+.

Non-Segregated Storage (Commingled Storage)

Non-Segregated Storage (Commingled Storage)

Non-Segregated Storage involves storing your gold together with assets from other investors in a shared space. This option is more affordable, with fees typically ranging from $50 to $150+ per year. While you may not receive the exact gold bars or coins you purchased upon liquidation, their value remains equivalent.

Choosing between segregated and non-segregated storage depends on your desired level of security and the size of your investment. Larger portfolios may benefit from segregated storage, while smaller ones might prefer the cost savings of non-segregated storage. Consult your Gold IRA custodian to compare available storage options for your Solo 401(k) rollover.

IRA-Approved Precious Metals for New Gold IRA

Consider IRA-approved gold you are allowed to include in your new Gold IRA after you convert your Solo 401(k). Not all gold is allowed, make sure you invest in only IRA-approved gold and silver.

American Eagle Gold Coins

American Eagle Gold Coin

Mint:
U.S. Mint
Purity:
91.67% (22-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Key Features:
Iconic design, most popular Gold IRA coin, recognized worldwide.

Canadian Maple Leaf Gold Coins

Canadian Maple Leaf Gold Coin

Mint:
Royal Canadian Mint
Purity:
99.99% (24-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz, 1/20 oz
Key Features:
Known for purity and security features, widely accepted.

Austrian Philharmonic Gold Coins

Austrian Philharmonic Gold Coin

Mint:
Austrian Mint
Purity:
99.99% (24-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Key Features:
Europe's best-selling gold coin, recognized worldwide.

Credit Suisse Gold Bars

Credit Suisse Gold Bar

Manufacturer:
Credit Suisse
Purity:
99.99% (.9999)
Sizes:
1 gram to 1 kg
Key Features:
Widely accepted, serial numbered, highly reputable.

Choose a Gold IRA Company For Your Solo 401(k) Rollover

Comparing the industry-leading Solo 401(k) Gold IRA companies with the best reputations across the board. Focus on the User reviewed all of the leading companies so you can easily find one perfect for your Solo 401(k) rollover to gold.

Patriot Gold Group

Patriot Gold Group

4.9/5 Rating
Advantage Gold

Advantage Gold

4.8/5 Rating
Goldco

Goldco

4.8/5 Rating
Birch Gold Group

Birch Gold Group

4.5/5 Rating

Solo 401(k) Rollover FAQ

No. Traditional Solo 401(k) plans generally do not allow direct investments in physical gold. You would need to roll it over into a self-directed IRA to hold physical gold.

Yes, you can roll over your Solo 401(k) into a Gold IRA without penalty, as long as the funds are transferred directly to a self-directed IRA following IRS guidelines.

Required documents typically include a rollover request form from your Solo 401(k) provider and an account setup form for the new self-directed Gold IRA. Your Gold IRA company will help you through all required forms and other requirements.

A direct rollover from a Solo 401(k) to a self-directed Gold IRA is tax-free. Indirect rollovers must be completed within 60 days to avoid taxes and penalties. This also applies to rollovers to a Silver IRA.

Generally, yes, but it depends on your plan’s rules and your age. Withdrawals before age 59½ without a rollover may incur penalties.

The process typically takes 2 to 4 weeks, depending on your Gold IRA company and how quickly they process the rollover request.

You can invest in IRS-approved gold, such as gold bullion coins and bars that meet the required fineness standards. The full list of IRA-approved bullion is available here on Focus on the User.

How Focus on the User Helps You Convert Your Solo 401(k) to a Gold IRA

Focus on the User's gold IRA experts offer step-by-step resources to help you convert your Solo 401(k) to a Gold IRA. With expert guidance on the rollover process, choosing the right custodian, and understanding tax benefits, we make it easy for you to diversify and protect your retirement with gold. Learn more in our free Gold IRA Guide.


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