Most articles about gold IRA rollovers focus on the 401(k), but millions of Americans save for retirement through other workplace plans. Federal employees and members of the military use the Thrift Savings Plan. Teachers, university staff, and hospital workers often have a 403(b). State and local government employees frequently have a 457(b).
The good news is that all of these plans can generally be rolled into a self-directed gold IRA, which is an individual retirement account that holds physical precious metals under Section 408(m) of the tax code. The mechanics are similar to a 401(k) rollover, but each plan has its own eligibility rules and quirks. This article covers what is different, plan by plan.
If you want the full rollover process from start to finish, our 401(k) to Gold IRA rollover guide covers each step in detail, and nearly all of it applies to these plans as well.
First, the Rules That Apply to Everyone
Regardless of which plan you have, three principles govern the move:
- Prefer a direct rollover. A direct rollover sends the money from your plan straight to your new IRA custodian. You never touch the funds, nothing is withheld for taxes, and the transaction is not taxable.
- Avoid the indirect route if you can. If the plan pays the money to you personally, it must withhold 20% for taxes, and you have 60 days to redeposit the full amount, including the withheld portion, from your own funds. Miss the deadline and the whole amount becomes taxable income, plus a 10% early-withdrawal penalty if you are under 59 1/2. The details are covered in IRA Transfer vs. Rollover: The 60-Day Rule Explained.
- In-service restrictions are common. If you are still working for the employer that sponsors the plan, your ability to roll money out before age 59 1/2 is often limited, and the specifics vary by plan. Separation from service usually opens the door.
The Thrift Savings Plan (TSP)
The TSP is the retirement plan for federal civilian employees and members of the uniformed services. It is known for very low internal costs, which is worth keeping in mind as you weigh a move, since a gold IRA carries setup, custodian, and storage fees that the TSP does not.
When can you roll it over? Rollovers from the TSP to an IRA are generally allowed after you leave federal service, or at age 59 1/2 while still employed through an age-based in-service withdrawal. Before 59 1/2 and while still in service, your options are limited.
How it works in practice. Once you are eligible, you request a distribution from the TSP and elect a direct rollover to your new self-directed IRA custodian. The TSP does not hold physical metals itself, so the money arrives at the IRA as cash, and you then purchase IRS-approved metals through a dealer. If you have both traditional and Roth TSP balances, make sure each portion is routed to an IRA with matching tax treatment.
A note for federal savers. You do not have to move your entire balance. A partial rollover lets you keep the TSP's low-cost funds while allocating a portion to metals. Precious metals prices fluctuate and can lose value, and metal produces no income or dividends, so most savers treat a gold allocation as one slice of a diversified plan rather than a replacement for it.
The 403(b)
A 403(b) is the workplace plan used by public schools, universities, hospitals, churches, and many nonprofit organizations. Functionally it is a close cousin of the 401(k), and the rollover rules feel familiar.
When can you roll it over? If you have left the employer, you can generally roll your 403(b) into an IRA at any time. If you are still employed, in-service rollovers are often restricted before age 59 1/2, and the plan document controls what is allowed. Some 403(b) plans are funded through annuity contracts, which can carry surrender charges if you move money before a set period ends, so ask about that specifically.
How it works in practice. Contact the plan administrator, confirm eligibility, and request a direct rollover payable to your new custodian for your benefit. As with the TSP, the funds land in the IRA as cash before any metal is purchased.
The 457(b)
The 457(b) is a deferred compensation plan offered mainly by state and local governments, and by some nonprofits. Governmental 457(b) balances can generally be rolled into an IRA after you separate from service.
One distinctive feature of a governmental 457(b) is worth understanding before you move the money: 457(b) withdrawals after separation are not subject to the 10% early-withdrawal penalty that applies to most other plans, even if you are under 59 1/2. Once you roll a 457(b) into an IRA, the money becomes IRA money, and future early withdrawals from the IRA generally do face that penalty. If there is any chance you will need the funds before 59 1/2, weigh this carefully with a tax professional before rolling over.
If you have a 457(b) from a nonprofit employer rather than a government, the rules are more restrictive, and you should confirm your options with the plan administrator.
Setting Up the Receiving Gold IRA
Whichever plan you are rolling from, the destination looks the same. A gold IRA involves three parties:
- A custodian, the IRS-required trustee that administers the account and handles reporting.
- A dealer, which sells you the physical metal.
- An IRS-approved depository, which stores it. Home storage of IRA metals is treated as a taxable distribution.
The metals themselves must meet IRS purity minimums: gold at .995 fine (the American Gold Eagle is a permitted exception), silver at .999, and platinum or palladium at .9995. How the three parties work together is explained in How a Gold IRA Works: Custodians, Dealers, and Depositories.
Expect ongoing costs: typical setup fees run about $50 to $250, annual custodian fees about $75 to $300, and storage about $100 to $300 per year, with the dealer's markup over spot price often the largest real cost. Verify every figure with the specific company before you commit.
A Simple Checklist
- Confirm with your plan administrator that you are eligible to roll over, and whether any surrender charges or plan-specific restrictions apply.
- Open a self-directed IRA with a custodian that supports physical precious metals.
- Request a direct rollover, with funds payable to the custodian for your benefit.
- Once the cash arrives, select IRS-approved metals and confirm storage at an approved depository.
- Keep copies of all paperwork for your tax records.
Talk to a Professional, Then Compare Companies
Rolling a TSP, 403(b), or 457(b) into a gold IRA is a significant decision that touches taxes, fees, and your long-term plan, so it is worth reviewing with a qualified financial or tax professional first.
When you are ready to talk to providers, GoldIRAFinder.com can help. We are a free referral service, not a dealer, custodian, or advisor. Get matched with trusted Gold IRA companies and ask each one how it handles rollovers from your specific plan.