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If I convert my 401K TO gOLD. iS THEREE A TAX ADVANTAGE WHEN

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If I convert my 401K...
If I convert my 401K TO gOLD . iS THEREE A TAX ADVANTAGE WHEN i HAVE TO SELL IT DUE TO HAVING TO SELL BECAUSE i WOULD BE SELLING THE GOLD INSTEAD OF A STOCK ?
Submitted: 2 years ago.Category: Tax
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Answered in 4 minutes by:
8/26/2015
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,876
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi,

...

No, no difference at all. Gold is a capital asset, just like stock, real estate owned as an investment, etc.

...

If it's sold and proceeds kept INSIDE the IRA that's not a taxable event (regardless f what the investment is).

...

It's when the asset is DISTRIBUTED (Withdrawn from the IRA) that the tax occurrs - again, regardless of the asset

...

If you find an IRA custodian that will hold the IRA (and there are several) they will likely (1) force you to sell BEFORE withdrawing so that the amount withdrawn can be valued so they can send the 1099-R or (2) force a valuation of the market price of the gold ... for the same reason - they MUST send that 1099-R when the asset is pulled out OF the IRA... It's when you take an assets outside the "shell" of the IRA, that the taxable event occurs

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

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