It is no secret that the U.S. economy has been struggling for years, and many people are looking to make changes in their lives. One of the most common questions we get is what kind of retirement account they should have – a traditional 401(k) or a 401k rollover. The answer to this question depends on your reasons for wanting either one, but there are three specific reasons why you would want to switch from a traditional 401(k) to a Gold IRA Rollover.
You Can’t Withdraw Money When You Need It
A traditional 401(k) is a tax-deferred account. This means that you pay no taxes on the money going into it. Still, when you take out your funds at retirement age (59 ½) or earlier in certain situations such as disability or buying a house, you will have to pay federal and state income taxes. You can’t withdraw from your 401(k) when you need the funds because you will be taxed.
A Gold IRA Rollover allows you to withdraw the funds without taxation at any time for almost any reason. With a traditional 401(k), this is not possible, and if it is done too early, then penalties are assessed by both state and federal governments. This can quickly turn into one of your biggest financial mistakes that can leave you battered and bruised financially!
You Don’t Want Your Money at Risk When the Market Declines
The global economy has been vacillating because of the coronavirus pandemic, and the U.S. market is one of the most heavily impacted, so it is wise to not allow your money in a 401(k) plan that this can impact.
With the volatile nature of today’s market, it may make sense for you to protect yourself with gold IRA rollovers because they are not affected like traditional retirement accounts when there is an economic downturn.
You’re Tired of Paying a Large Sum of Tax
Paying taxes sucks, and we all hate the IRS, but you might not hate it as much if you have a 401(k) plan because the amount of tax that is taken from your account will not be very high. With a gold IRA rollover, you don’t have to worry about paying all kinds of taxes on what’s in your new retirement account and getting tied up with complicated paperwork, or having to pay an excessive amount of money because you didn’t file the correct paperwork.
The Takeaway
If you want to make sure you have a good retirement account, make the switch today. Traditional IRAs and 401(k)s are great options. Still, they don’t reflect the current economic situation in America when Gold IRAs allow people to invest their money based on what is going on with gold prices instead of investing blindly into things that might turn out bad for you and your financial future!