The vast majority of 401 (k) plans don't allow people to invest directly in physical gold. However, there are gold IRAs that specialize in holding precious metals to save for retirement. However, investors can find specific mutual funds or ETFs that hold gold or gold mining stocks through their 401 (k) plans. To invest retirement funds directly in physical gold and silver, a self-directed IRA is necessary.
This allows you to purchase eligible gold and silver coins and ingots and have them physically assigned to an external custodian. Metal IRAs are great retirement plans because they allow you to protect your wealth with the best safe assets while enjoying the tax benefits of an IRA. Once you decide to invest in gold, the next step is to find the best way to start. While you can buy gold coins and ingots directly, simply buying gold has no tax advantages.
If you buy gold through your 401 (k), you can deduct your 401 (k) plan contributions from your annual tax return. Until you finally sell the gold and withdraw your profits, you won't have to pay taxes on your investment.