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Gold and Precious Metal Investing with your 401k

Gold has been used as a form of currency for literally thousands of years. However, most 401ks do not allow for the direct purchase of physical gold.

However, due to the flexibility you get with a Solo 401k, you can invest a portion of your portfolio in gold and other precious metals with ease and simplicity, further diversifying your portfolio.

What types of precious metals can you invest in with a Solo 401k?

Most collectibles can’t be invested in with a Solo 401k. However, coins are an exception. Coins, bars, and rounds of the below purity are IRS-approved and can be held in a Solo 401k plan, including:

  • Gold: 99.5% purity and above
  • Platinum: 99% purity and above
  • Silver: 99.9% purity and above
  • Palladium: 99.95% purity and above

How to invest in gold and precious metals with your Solo 401k

If you’re not familiar with the process already, as you might expect, investing in gold or other precious metals is quite different from investing in virtually anything else.

However, when it comes down to it, it’s not very complicated. And we’ve got you covered with some step-by-step instructions to shed light on the process (even if you have someone assisting you):

Metals and coins you invest in must be held in the name of your Solo 401k plan at a depository or bank, so that will be the final destination of any gold or other precious metal you purchase and invest in. In other words, you cannot hold gold or precious metals owned by your Solo 401k in your personal possession.

Let’s talk about how exactly this is done:

1. Choose what metals and coins to be included in your Solo 401k

Choose exactly which metals and coins you’ll be investing in with you Solo 401k (make sure to double check that they’re allowable by IRS regulations first).

2. Find a dealer

Step one is pretty straightforward, you need to find a dealer that sells gold and/or any other precious metals you plan to purchase.

Below is a non-exhaustive list of dealers who sell gold and other precious metals suitable for holding in a Solo 401k:

  • All metals: TOCOM
  • Gold: COMEX, LBMA
  • Platinum: LPPM, COMEX, NYMEX
  • Silver: COMEX, LBMA
  • Palladium: LPPM, NYMEX

3. Have the dealer prepare the purchase invoice

Next, ask the dealer the prepare the purchase invoice. In most cases, this is done automatically, but you may need to request it.

This must be done in the name of the Solo 401k trustee, for example: Jane Smith Solo 401k, FBO Jane Doe.

4. Send a check to the dealer (with instructions)

Next, using your Solo 401k checking account, write and send a check payable to the dealer.

Important: Make sure to include instructions as to where to deliver the metals with the check.

5. Store your precious metals with a third party

Once you receive the metals there are two legal options for storing them:

  • Send the metals to a depository / precious metals storage facility where you have opened an account in the name of your Solo 401k
  • Send the metals to you so that you can store them at your local bank or credit union. Again, the account holding the assets must be in the name of your Solo 401k

Remember, you are not allowed to personally hold precious metals owned by your 401k, so if you choose to deliver the metals personally, deposit them in a timely manner.

Add precious metals to your portfolio with a Solo 401k

Maverick 401k makes it easy to add gold and other precious metals to your portfolio.

If you’re ready to get started and begin taking advantage of the great benefits of a Solo 401k plan, click here to set up an account or contact us here with any question you may have. 

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