401(k) to Gold and Silver IRA Rollover
A direct rollover from a 401(k) into a self-directed precious metals IRA is not a taxable event and has no dollar limit. The tax risk in this process comes almost entirely from one avoidable choice: letting the plan send the money to you instead of to the new custodian. That single detail triggers 20% mandatory withholding and starts a 60-day clock.
Step 1 — Confirm your plan is eligible to move
Balances from a former employer's 401(k), 403(b), 457(b) or the federal TSP can be rolled over at any time. A plan at your current employer generally cannot, unless the plan document allows in-service distributions — commonly permitted from age 59½, sometimes earlier for employer-contribution sources.
Call the plan administrator and ask three questions: is my balance eligible for a direct rollover; what portion is pre-tax versus Roth versus after-tax; and do you send funds by wire or by cheque payable to the receiving custodian. The answers determine the paperwork and the timeline.
Step 2 — Open the receiving self-directed IRA first
The destination account must exist before the plan will release funds. Open a self-directed traditional IRA with a metals-capable custodian — the dealer you choose will normally submit the application for you. Match the tax character: pre-tax 401(k) money rolls to a traditional IRA without tax; rolling it to a Roth IRA is a conversion and the full amount becomes taxable income this year.
Have the account number and the custodian's exact payee instructions in hand before you call the plan back.
Step 3 — Request a direct rollover, not a distribution
The wording matters. A direct rollover moves funds from the plan to the IRA custodian; nothing is withheld and nothing is taxable. A distribution paid to you is subject to 20% mandatory federal withholding under IRC §3405(c), even if you intend to roll it over.
The withholding trap works like this: on a $100,000 balance, the plan sends you $80,000 and remits $20,000 to the IRS. To complete a full rollover within 60 days you must deposit $100,000 — replacing the withheld $20,000 from your own savings. You recover it only when you file your return. Any shortfall is treated as a distribution: ordinary income tax, plus 10% if you are under 59½.
Cheques made payable to the custodian "FBO [your name] IRA" and mailed to you are still direct rollovers. It is the payee, not the mail route, that governs.
Step 4 — Fund settles, then buy eligible metals
Funds typically arrive in three to ten business days. Only then do you place the metals order. Eligible products are gold at .995 fineness or better, silver at .999, platinum and palladium at .9995, plus the American Gold Eagle and American Silver Eagle, which qualify by statute.
Ask for the quote as spot plus a stated percentage. Bullion premiums of 3%–5% are normal, 5%–8% for American Eagles. Graded coins, proof "exclusives", Krugerrands and pre-1965 90% silver either fail eligibility or carry premiums that will not survive a buyback.
Step 5 — Metal ships to the depository, never to you
The dealer ships directly to an IRS-approved depository, titled to the IRA. Choose commingled storage ($100–$150/yr) or segregated ($150–$300/yr). Taking delivery yourself converts the purchase into a taxable distribution — the outcome in McNulty v. Commissioner (157 T.C. No. 10, 2021), where a home-storage LLC arrangement produced taxable distributions equal to the coins purchased.
Step 6 — Reconcile the paperwork at tax time
A direct rollover still generates forms. Expect a Form 1099-R from the plan with distribution code G, and a Form 5498 from the IRA custodian reporting the rollover contribution. Report the amount on Form 1040 line 5a with $0 taxable on 5b and the notation "ROLLOVER".
Nothing is owed, but the forms must match. Keep the custodian's confirmation and the depository's holdings statement with your tax records.
Direct vs indirect: the comparison in one table
| Direct rollover | Indirect (60-day) | |
|---|---|---|
| Payee | New custodian | You |
| Withholding | None | 20% on 401(k) funds |
| Deadline | None | 60 calendar days |
| Frequency limit | Unlimited | One per 12 months for IRA-to-IRA |
| Risk of tax | None if executed correctly | Full balance if the deadline is missed |
Special cases worth checking before you start
- Company stock in the plan. Net unrealised appreciation treatment can be far more favourable than a rollover. Get advice before moving employer securities.
- After-tax contributions. These can often be split — after-tax dollars to a Roth IRA, pre-tax to a traditional — in the same distribution event.
- Outstanding 401(k) loan. The unpaid balance is usually treated as a distribution when you separate, with tax and possible penalty. Repay before rolling over if you can.
- Roth 401(k) balances. These roll to a Roth IRA, not to a traditional one, and carry their own five-year clocks.
- Age 55 separation. Distributions from a 401(k) after separating at 55 or later escape the 10% additional tax; that exception does not follow the money into an IRA, where 59½ applies.
How much of the balance should go into metals
The rollover is all-or-nothing only if you make it so. Most custodians will accept a partial rollover, letting you move, say, $60,000 of a $200,000 balance into metals and leave the rest invested. Given that recurring metals-IRA costs are $150–$280 per year regardless of size, and that most advisers cap precious metals at 5%–10% of a portfolio, a partial rollover sized to that target is usually the more sensible structure.
Frequently asked questions
Is there a limit on how much I can roll over?
No. Annual contribution limits do not apply to rollovers. The median 401(k)-to-IRA rollover is roughly $87,000.
How long does a 401(k) rollover take?
Typically 7–14 business days total, with the plan's release being the slowest part. Some plans still mail paper cheques, which adds a week.
Can I roll over while still working?
Only if your plan permits in-service distributions, usually from 59½. Otherwise you must wait until separation.
What if I miss the 60-day deadline?
The amount becomes a taxable distribution. The IRS offers a self-certification procedure (Rev. Proc. 2016-47) for eleven specific circumstances such as bank error or serious illness, but it is not a general safety net.
Can I roll a TSP into a metals IRA?
Yes. TSP rollovers follow the same direct-rollover mechanics; request form TSP-99 or the current equivalent from your agency.
Next step: pick the receiving firm before you call the plan administrator. Our 2026 ranking compares the five largest gold and silver IRA companies on minimums, premiums and total first-year cost.