Why can't I invest in Gold Bullion via my 401k? | 401k Questions

Question

Asked 11/10/2008

Why can't I invest in Gold Bullion via my 401k?

The company that processes 401K's for the company that I work for says: " IRS does not allow coins or bullion as 401(k) options. No "collectibles"."
Is this true? If so, why?
I can understand Not investing/speculating in old 'collectible' coins, but "outlawing" the ability to shelter one's own hard-erned retirement $ against inflation using pure gold seems almost illegal to me?
R. D. Scott
Sachse, Texas

Share | Abuse

Post Response

Answers

Answer 1/4 - Submitted 11/10/2008

I can't speak to the rational behind this, but perhaps you could look for a mutual fund that itself invests in things like Gold. That may let you get the same benefit but still follow the IRS rules.

Share | Abuse

Answer 2/4 - Submitted 10/28/2010

You can. Certain gold and or silver coins are exempt from the "collectible" rule. As per Internal Revenue Code 408 m(3) U.S. minted coins, as defined by USC 5112(e), for silver and USC 5112(a) 7~10 for gold, are allowed. In essence these are of the Eagle variety. Check it out.

Share | Abuse

Answer 3/4 - Submitted 10/28/2010

It is considered very risky. However, you can invest in gold mutual funds or ETFs.

Share | Abuse

Answer 4/4 - Submitted 10/28/2010

There is an ETF holds gold bullion not the gold stocks. I think it is GLD.

Share | Abuse

Answer This Question Now

Type your Answer in the box below and post your answer.

Learn more about how this works

401K Related Topics

Related Questions (Ask a New Question)

Where do i find the name of the companies that invest my 401k?

I work for technology solution providers and paychex sponsors my 401k. however, i need to know the name of the company that invest my funds. i was told the name was smithboniam, not sure if that's the correct info and i could not find anything on the web about this people. can you help?

See Answers

401k pre-tax vs. roth, should i invest equally or one more than the other?

I currently invest 16% total into my company's 401k but it is split equally between the pre-tax and roth (8% each). i will be increasing my investment to 22% and would like to know if i should invest equally or favor one more than the other and if so, how much of an offset?

See Answers

If you invest your 401k withdrawal, and the company you took the money from goes down. what is your rate.

I want to take money out of my 401k and invest it in my personal buisness. the company holding my 401k savings looks as if they might go down. what will be my rate if the company does go down. 20% or 10%

See Answers

Related Questions

Where do i find the name of the companies that invest my 401k?

I work for technology solution providers and paychex sponsors my 401k. however, i need to...

See Answers

401k pre-tax vs. roth, should i invest equally or one more than the other?

I currently invest 16% total into my company's 401k but it is split equally between the...

See Answers

If you invest your 401k withdrawal, and the company you took the money from goes down. what is your rate.

I want to take money out of my 401k and invest it in my personal buisness. the company holding...

See Answers

How can you use your 401k to fund a small business?

Is it possible to take a loan out on a 401k or cash out of your 401k to invest and start a...

See Answers

Taking out your 401k and buying gold?

After my husband was laid off, he put his 401k into a roth ira. since the interest rate is...

See Answers

I received a qdro from ex husbands 401k they invested it for me i would like to have cash option how much taxes would i owe

Due to a divorce , i received 50% of my exes 401k they never gave me any options on how i...

See Answers

See more 401k questions

Advertise on this Site