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Can I invest in gold in a Fidelity 401k?
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2 Replies
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You cannot directly invest in physical gold within a traditional Fidelity 401k account. Fidelity’s standard 401k plans typically only allow investments in assets like mutual funds, annuities, and publicly traded stocks.
However, there is a way to invest in gold using funds from your Fidelity 401k by taking the following steps:
Open a self-directed Solo 401k plan with a provider like My Solo 401k Financial. Their plan allows for alternative investments like precious metals, real estate, private equity, etc.
Transfer or rollover funds from your existing Fidelity 401k into the new self-directed Solo 401k account. This moves the money into a plan that permits physical gold investments.
Within the self-directed Solo 401k, open an account at a precious metals dealer in the name and tax ID of the Solo 401k trust.
Use the Solo 401k funds to purchase IRS-approved gold bullion or coins that meet minimum fineness requirements. The metals must be held by an approved depository taking institution such as a bank or credit union, for example.
Follow all IRS rules for the gold investment, such as not personally possessing the metal and ensuring any sale proceeds flow back to the Solo 401k.
So in summary, while you can’t buy gold directly in a standard Fidelity 401k, you can facilitate a gold investment by rolling Fidelity 401k funds into a self-directed Solo 401k that allows precious metals, and then directing the purchase from there following all applicable rules. The key is using the self-directed Solo 401k as the vehicle to enable the physical gold holdings.
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Please check out this video webinar on the topic https://youtube.com/live/J6-jmB1Ie00
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