Yes, all three can usually be moved into a gold IRA. The hard part is the timing. Most of these plans only allow it after you leave the job or reach age 59½, and one of the three has a tax advantage you can give up without realizing it if you move too fast.
I started my career in 2011 as a mortgage broker at one of the country's largest banks, and I've been part of more than $500 million in transactions since. A large share of the retirement conversations I have now are with people who never had a 401(k) at all: federal employees with a Thrift Savings Plan, teachers and nurses with a 403(b), and police officers, firefighters and county workers with a 457(b).
Almost everything written about gold IRA rollovers assumes a private-sector 401(k). These plans work differently, and the differences decide whether a rollover is simple, delayed, or a mistake. Here's how each one actually works.
The Short Answer, Plan by Plan
- TSP (federal employees and military): yes, once you separate from federal service, or while still working once you reach 59½.
- 403(b) (teachers, nurses, nonprofit and university staff): yes after you leave the employer, and often at 59½ while still working if your plan allows it.
- Governmental 457(b) (state, county, city, police, fire): yes after you leave, or at 59½ if your plan allows. Read the 457(b) section below before you move it, though.
- Non-governmental 457(b) (some hospital and nonprofit executives): generally no. These plans can't be rolled into an IRA at all.
The rest of this is the detail behind those four lines.
Rolling Over a TSP
The Thrift Savings Plan lets you move money to an IRA in two situations: after you leave federal service, or through an age-based withdrawal once you reach 59½ while you're still working. If neither applies, the money generally stays put.
When you do move it, the type of balance matters. Traditional TSP money goes into a traditional gold IRA and stays tax-deferred. Roth TSP money goes into a Roth gold IRA. Mixing them up creates a tax problem, so make sure the paperwork names both accounts if you have both kinds of balance.
I'll be straight about one thing here, because it's true and most dealers won't say it: the TSP is one of the lowest-cost retirement plans in the country. Moving all of it into anything, gold included, means giving up that low cost. For a lot of federal employees, the sensible move is diversifying a portion and leaving the rest where it is.
Rolling Over a 403(b)
A 403(b) can be rolled into a gold IRA once you leave the employer, and many plans also allow an in-service rollover once you reach 59½. Whether yours does is up to the plan, so ask your administrator directly.
One thing to check before you move a dollar: many 403(b) plans, especially in school districts, hold annuity contracts rather than ordinary investment accounts. Annuities often carry surrender charges if you move money out within a set number of years. That charge can be large, and it comes out of your balance, not ours. Ask for the surrender schedule in writing first.
Rolling Over a 457(b), and the Advantage You Could Give Up
Governmental 457(b) plans have a feature the others don't. Once you leave the job, you can take withdrawals from the 457(b) itself at any age without the 10% early withdrawal penalty that normally applies before 59½. That's a genuinely valuable feature, especially for police and firefighters, who often retire well before 59½.
Here's the catch. Money rolled out of a 457(b) into an IRA becomes IRA money, and IRA rules apply. That means the 10% penalty on withdrawals before 59½ comes back.
So if you're under 59½ and there's any chance you'll need some of that money before then, keep enough of it in the 457(b) to cover that need, and only move the part you're confident you won't touch. Anyone who rushes you to roll the whole balance without asking your age and your plans first hasn't done their job.
And if your 457(b) is a non-governmental plan, which is typical for executives at some hospitals and nonprofits, it generally can't go into an IRA at all. Find out which kind you have before anything else.
What About a Pension?
If your pension offers a lump-sum payout, that lump sum can often be rolled into an IRA. Many public pensions don't offer one at all, though, and choosing a lump sum over guaranteed monthly income is usually irreversible. That decision deserves a careful conversation on its own, well before any discussion of gold.
Always Use a Direct Transfer
This applies to all of these plans. Have the money sent directly from your plan to the new IRA custodian, rather than as a check made out to you.
If the check comes to you instead, the plan is generally required to withhold 20% for taxes. You then have 60 days to deposit the full amount, including the 20% that was withheld, which you'd have to cover from other savings. Whatever you don't redeposit gets treated as a taxable withdrawal. A direct transfer avoids all of that, and it's the way we set these up.
Do You Have to Move All of It?
No. Partial rollovers are common and often the right answer. Plenty of our clients move part of a TSP or 403(b) into physical metal and leave the rest invested as it is. How much makes sense depends on what else you own, how close you are to retirement, and why you want gold in the first place.
What a Self-Directed Gold IRA Actually Holds
The receiving account is a self-directed IRA held by a custodian that allows physical precious metals. It owns IRS-approved bullion coins and bars, which are stored in an approved, insured depository. You can't keep IRA metal at home. The tax code requires it to be held by a trustee or custodian, and we explained what happens to people who try otherwise in gold IRA vs physical gold.
Five Questions for Your Plan Administrator
- Do you allow in-service rollovers at 59½, or only after I leave?
- How much of my balance is traditional and how much is Roth?
- Are there surrender charges or transfer fees on any part of my account?
- For a 457(b): is this a governmental or non-governmental plan?
- What paperwork do you need for a direct transfer to a new IRA custodian?
Bring those answers to any dealer you talk to. If they don't ask you for them, that's worth noticing.
The Bottom Line
A TSP, a 403(b), and a governmental 457(b) can all usually be moved into a gold IRA without taxes or penalties, as long as you meet the plan's timing rules and use a direct transfer. Check for surrender charges on a 403(b), and think hard before moving 457(b) money you might need before 59½.
This is general information rather than tax advice, and plan rules vary, so confirm the details with your plan administrator and your tax professional. You can read how a gold IRA rollover works, see the IRA-approved gold and silver coins we carry, or start opening a gold IRA. Our in-house team handles the paperwork with your current plan and custodian.
We're an A-rated company with the Better Business Bureau, based in Des Moines, and we work with federal, school, and public employees in all fifty states. If you'd rather just ask, call us at (833) 425-3269, Monday through Friday, 9 to 5 Central.