How to Purchase precious metals (e.g. Gold Solo 401k): Self Directed Solo 401k | Solo 401k

Solo 401k funds can be invested in precious metals such as gold and silver provided the IRS requirements outlined in Code 408(m) are satisfied.

How the purchase of metals (often called Gold Solo 401k) works:

Step 1: Find a Precious Metals dealer: Below are some links of brands acceptable in a Solo 401k.

COMEX:

Gold: http://www.cmegroup.com/trading/metals/gold-brands.html

Silver: http://www.cmegroup.com/trading/metals/silver-brands.html

NYMEX:

Palladium: http://www.cmegroup.com/trading/metals/palladium-brands.html

Platinum: http://www.cmegroup.com/trading/metals/platinum-brands.html

TOCOM:

All Metals: http://www.tocom.or.jp/guide/brand/index.html

LPPM:

Palladium: http://www.lppm.com/lists.aspx?type=pd

Platinum: http://www.lppm.com/lists.aspx?type=pt

LBMA:

Gold: http://www.lbma.org.uk/pages/index.cfm?page_id=29&title=gold_list

Silver: http://www.lbma.org.uk/pages/index.cfm?page_id=30&title=silver_list

Step 2: As trustee of the Solo 401k, choose the metals to be held in the Solo 401k.

Step 3: Have the Precious Metals dealer prepare the purchase invoice in the name of the Solo 401k F.B.O your name as trustee.

Step 4: Write a check from the Solo 401k checking account payable to the precious metals dealer and send the funds directly to the Precious Metal dealer with instructions to where to deliver the metals.

Step 5: The dealer will then send the precious metals (e.g., gold and silver coins) to either:

  • You as Trustee of Solo 401k plan for storage at the local bank or credit union , or

Step 6. Lastly, make sure you are not purchasing disallowed metals. Click here to read our blog regarding the negative consequences of investing solo 401k funds in disallowed metals:

Additional Information: Click here to read our blog regarding acceptable metals that may be held in a solo 401k.

No Krugerrands QUESTION:

Your blog indicates that American Eagle Gold Coins are an acceptable investment  per IRS rules. You also mention Canadian Maple Leaf as acceptable. Why wouldn’t other similar investment grade coins like the Krugerand qualify ?

ANSWER:

No Krugerrands and Double Eagle coins are not allowed because they don’t satisfy the pureness level requirement of  .995 fine (99.5% pure).

 

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 18 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571

    Monday-Saturday

    7:00 am - 5:00 pm PT

    Why us?
MENU