Rolling Over a 403(b) Into a Gold IRA
Affiliate disclosure: we may earn a commission when a reader opens an account through links on this page. The commission has no effect on what you pay or on what we publish. We are not a financial or tax advisor; consult a licensed advisor for your situation. Last reviewed June 2026.
Short on time? The essentials
- A 403(b) is an eligible retirement plan for rollover purposes under IRS Topic 413. Pre-tax 403(b) money rolls to a traditional gold IRA. Roth 403(b) money rolls to a Roth gold IRA.
- A direct rollover has 0 percent federal withholding. An indirect rollover triggers mandatory 20 percent federal withholding under IRC Section 3405 and starts a 60-day clock to redeposit the full pre-withholding amount.
- Your 403(b) may be an annuity contract under IRC 403(b)(1) or a custodial account under IRC 403(b)(7). Annuity contracts often carry surrender charges; read the contract before you request the rollover.
- The "Rule of 55" applies to a 403(b) too. Separation in or after the calendar year you turn 55 unlocks penalty-free distributions from that plan. Rolling to an IRA cancels the exception on the rolled money.
- You cannot roll a required minimum distribution, a hardship distribution, or a series of substantially equal periodic payments. The IRS lists these as ineligible in Topic 413.
- Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. A taxable IRA distribution is taxed by the IRS only for a Texas resident, with no state layer.
- The Texas Bullion Depository in Leander is available for IRA storage through its operator, Lone Star Tangible Assets, which received IRS non-bank trustee approval in 2023. Equity Trust Company is the first custodian wired in.
On this page
- When you can actually move 403(b) money
- The 403(b)-to-gold-IRA rollover in seven steps
- Annuity contract or custodial account: which 403(b) you have
- The Rule of 55 and the 403(b) rollover trap
- Direct vs indirect rollover: the 20 percent withholding rule
- Pre-tax 403(b) and Roth 403(b): tax type must match
- Special cases: loans, hardship, RMDs, 15-year catch-up
- What gold the IRA can hold
- What Texas changes
- The fee stack you will see
- 2026 IRS 403(b) contribution ceilings
- Check whether your account is eligible
- Worked example: a Houston teacher rolls 180,000 dollars
- Your next step
- When rolling a 403(b) to a gold IRA is a bad idea
- 403(b) to gold IRA FAQ
When you can actually move 403(b) money
A 403(b) is not freely portable while you are still working there. The plan document, IRS rules, and sometimes an annuity contract together control when a participant may take a distribution. That gate decides whether a gold IRA rollover is on the table today or only later.
Three common triggers unlock a distribution. The participant separates from service. The participant reaches age 59 and a half while still employed and the plan permits in-service withdrawals. Or the participant qualifies under a narrow event such as disability, plan termination, or a qualified public safety officer exception.
Some 403(b) plans allow in-service withdrawal of specific sub-accounts before age 59 and a half. Rollover-contribution sub-accounts are commonly portable. Other buckets are locked until a triggering event occurs. The summary plan description spells out which sub-accounts can be moved and when.
If the 403(b) is at a former employer, the path is usually open. You can request a direct rollover into a self-directed IRA at any time, regardless of age, because separation from service has already happened. The recordkeeper processes the request on standard distribution forms once any annuity holds are lifted.
The 403(b)-to-gold-IRA rollover in seven steps
The mechanical sequence is consistent across 403(b) recordkeepers and self-directed IRA custodians. The signed paperwork and the wire details change from provider to provider. The order of operations does not.
- Confirm the 403(b) is eligible to distribute. Check separation status, age, and any plan-specific in-service rules. Read the summary plan description and call the plan administrator if anything is unclear.
- Identify the contract type and any surrender charges. A 403(b)(1) annuity contract can carry surrender charges that shrink over a set number of years. A 403(b)(7) custodial account of mutual funds does not. Ask for a current surrender schedule in writing.
- Open a self-directed IRA. A precious-metals IRA needs a qualified non-bank trustee or self-directed IRA custodian. Equity Trust Company, STRATA Trust, and GoldStar Trust are commonly used for Texas accounts.
- Pick a gold IRA dealer. The dealer sources the metal and coordinates with your custodian. Verify the dealer works with your chosen custodian before paperwork is signed.
- Request a direct rollover from the 403(b). File the plan's distribution form with the direct-rollover option selected. The check or wire is made payable to the receiving custodian, for the benefit of you, with the new IRA account number.
- Place the metal order. Once cash arrives in the new IRA, instruct the custodian to pay the dealer for IRS-approved bullion or coins. The dealer ships direct to an IRS-approved depository.
- File the right forms next April. The releasing 403(b) issues Form 1099-R with distribution code G (direct rollover). You report the rollover on Form 1040 line 5a with a taxable amount of zero on line 5b.
Annuity contract or custodial account: which 403(b) you have
A 403(b) is not one product. It is a tax-favored account type that can be held in two forms, and the form matters when you roll to a gold IRA.
A 403(b)(1) annuity contract is an insurance-company product. Deferrals buy units inside an annuity contract with a surrender charge that typically declines over a set number of years. Surrender charges can be a real cost at the moment of rollover, sometimes several percentage points of the balance.
A 403(b)(7) custodial account is a securities product. Deferrals buy mutual fund shares held by a custodian. There is no surrender charge on the account itself, though the underlying funds have their own expense ratios and possible redemption fees.
Some school district and hospital plans hold both forms across different vendors. A single 403(b) participant can have an annuity contract at one insurance vendor and a custodial account at a different mutual fund company. Each vendor is rolled separately.
Before you request the rollover, ask the vendor for two figures in writing. The current cash surrender value of any annuity contract. And the schedule of surrender charges by year. That number is the true rollover balance for the annuity slice, and it decides whether waiting a year or two makes financial sense.
The Rule of 55 and the 403(b) rollover trap
The Rule of 55 is an employer-plan exception to the 10 percent federal early-withdrawal penalty under IRC Section 72(t)(2)(A)(v). It applies to a 401(k) or 403(b) when a participant separates from service in or after the calendar year they turn 55. Distributions taken directly from that employer plan are not subject to the 10 percent penalty, even before age 59 and a half.
The rule does not survive a rollover. Once the balance moves into an IRA, the IRA's distribution rules apply. The 10 percent federal penalty reappears on any IRA withdrawal before age 59 and a half, unless a different exception fits.
For public safety workers, IRC Section 72(t)(10) drops the age threshold to 50. Firefighters, police officers, and emergency medical service personnel who separate in or after age 50 have a similar penalty-free path inside the plan. Rolling to an IRA cancels the early-out exception on the rolled money.
Practical implication for a Texas teacher or hospital worker who separates at 56 or 57. If you need to draw on the money for living expenses before 59 and a half, leaving some of the 403(b) balance in the plan preserves the penalty-free path. A partial rollover to a gold IRA, with a residual cash slice left in the 403(b), is a workable design. Confirm partial-rollover policy with the recordkeeper before signing.
Direct vs indirect rollover: the 20 percent withholding rule
The IRS recognizes two ways to move 403(b) money into an IRA. The label is paperwork. The dollar consequence is large.
A direct rollover sends the balance from the 403(b) plan straight to the new IRA custodian. The check or wire is made payable to the custodian, not to you. No federal withholding applies. No 60-day clock runs.
An indirect rollover sends a check to you. IRC Section 3405(c) requires the plan to withhold 20 percent for federal tax before cutting the check. You then have 60 days to redeposit the full pre-withholding amount, including the missing 20 percent paid from personal savings, into a new IRA.
The 20 percent withholding is later credited against your federal tax bill when you file. If you redeposited the full amount on time, the credit comes back as part of your refund. If you only redeposit the 80 percent you received, the missing 20 percent is treated as a taxable distribution. A 10 percent early-withdrawal penalty stacks on top if you are under age 59 and a half.
The direct path avoids all of that. It is the default recommendation for almost every 403(b)-to-gold-IRA move. IRS Topic 413 and the IRS Rollovers page document both routes.
Pre-tax 403(b) and Roth 403(b): tax type must match
A 403(b) can hold two buckets of money: pre-tax elective deferrals and designated Roth 403(b) contributions. Each bucket has its own destination IRA when you roll over.
Pre-tax 403(b) dollars, including any employer contributions, are pre-tax. They roll to a traditional IRA, which is what a "traditional gold IRA" technically is. The rollover itself is not taxable when done as a direct rollover of the same tax type.
Designated Roth 403(b) dollars roll to a Roth IRA. A Roth-to-Roth direct rollover stays tax-free. The 5-year holding period for qualified Roth distributions typically carries over from the Roth 403(b), though the exact tracking depends on plan reporting. Confirm the 5-year clock treatment with your tax advisor.
A traditional-to-Roth conversion is possible at rollover, but it is a taxable event in the year you do it. The full pre-tax amount converted is added to ordinary federal taxable income. This is a CPA conversation, not a metals-dealer conversation.
Special cases: loans, hardship, RMDs, 15-year catch-up
Outstanding 403(b) loans
An active 403(b) loan complicates separation. Under most plan documents, the unpaid loan balance becomes a deemed distribution shortly after the participant leaves. Since 2018, the Tax Cuts and Jobs Act lets you replace the loan balance with personal cash and roll it into an IRA. The deadline is the tax-filing due date for the year of the offset, including extensions.
If the loan offset goes through unrepaid, the amount is taxable and the 10 percent early-withdrawal penalty applies if you are under 59 and a half. Coordinate with the plan administrator on the offset date before initiating the gold IRA rollover.
Hardship distributions cannot be rolled
IRS Topic 413 lists hardship distributions as ineligible for rollover. A hardship distribution is treated as taxable income in the year received and is subject to the 10 percent penalty if the participant is under 59 and a half. If you took a hardship distribution recently, that money cannot be caught by a later rollover; only future distributions can.
Required minimum distributions
Under SECURE 2.0, RMDs begin at age 73 for those born between 1951 and 1959, and at age 75 for those born in 1960 or later. An RMD amount cannot be rolled over. If you are past your first RMD year, the RMD must be taken from the 403(b) first, and only the balance above the RMD is eligible for rollover to a gold IRA.
The 15-year service catch-up
IRC Section 402(g)(7) allows a 15-year service catch-up. Eligible employers are public school systems, hospitals, home health service agencies, health-and-welfare service agencies, churches, and conventions of churches. You must have at least 15 years of service with the same employer. The catch-up is up to $3,000 per year and capped at $15,000 lifetime.
This is a contribution rule, not a rollover rule. But it changes how much money accumulates in the 403(b) before a rollover event.
What gold the IRA can hold
IRC Section 408(m) bans collectibles inside an IRA. It then carves out an exception for bullion and certain coins meeting a fineness threshold. The gold floor is 99.5 percent purity. Silver is 99.9 percent. Platinum and palladium are 99.95 percent.
Two coins are named statutory exceptions inside the rule. The American Gold Eagle is IRA-eligible at 91.67 percent (22-karat). The American Silver Eagle is IRA-eligible at 99.9 percent. Proof Eagles qualify when held in original mint packaging with the certificate.
Bars must come from a refiner or assayer approved by NYMEX, COMEX, LBMA, or be a product of a national government mint. Common eligible names include PAMP Suisse, Credit Suisse, Valcambi, the Royal Canadian Mint, and the Perth Mint.
Common eligible coins include the American Gold Eagle (statutory), American Gold Buffalo at 99.99 percent, Canadian Gold Maple Leaf at 99.99 percent, Austrian Gold Philharmonic at 99.99 percent, and Australian Kangaroo at 99.99 percent. The South African Krugerrand sits at 91.67 percent gold with no statutory exception; it is not IRA-eligible.
What Texas changes
Federal IRA rules apply identically in every state. What Texas changes is the wrapper around them.
Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. Any taxable IRA distribution, including a botched indirect rollover, a future required minimum distribution, or an early withdrawal, is taxed by the IRS only. A Texas resident does not pay a state layer on top.
For storage, Texas offers a unique in-state option. The Texas Bullion Depository is an agency of the State of Texas, authorized by HB 483 signed by Governor Greg Abbott on June 12, 2015. It operates on a purpose-built campus in Leander, Texas, with Lone Star Tangible Assets (LSTA) as the contractor.
The depository is available for IRA storage through LSTA, which received IRS non-bank trustee approval from the Department of the Treasury in 2023. Equity Trust Company is the first self-directed IRA custodian wired in for coordination with LSTA. Storage is segregated (never commingled) with Lloyd's of London insurance.
Fees for IRA storage are negotiated between the custodian, the dealer, and LSTA. Confirm current pricing and account-opening flow directly with the dealer and custodian. Source: texasbulliondepository.gov IRA Storage Services page, checked June 2026.
Practical takeaway for a Texas 403(b) participant. The federal mechanics do not change. The state tax line is zero. And the metal can be held inside the state at a state-overseen depository instead of at a private vault in Wilmington, Delaware or Salt Lake City. None of that changes whether the underlying decision is right for your situation.
The fee stack you will see
A 403(b) usually has one all-in fee schedule that varies by product type. A gold IRA has several stacked fees. The categories below show where the money goes after the rollover.
| Fee | What it pays for | How it is usually charged |
|---|---|---|
| Annuity surrender charge (if applicable) | Insurance-company recovery of upfront commissions on a 403(b)(1) annuity contract | Percentage of contract value, declining by contract year |
| Custodian setup | Opening the self-directed IRA account | One-time at account open |
| Annual custodian fee | Recordkeeping, tax reporting (Form 5498), statements | Flat annual fee or tiered by account size |
| Annual storage fee | Depository vault, insurance, audits | Flat annual fee, sometimes scaled by value |
| Dealer markup on metal | Spread between spot price and the price you pay | Embedded in the metal price; rarely itemized |
| Wire and shipping | Funding wire, dealer-to-depository shipping | Per-event flat fee |
| Buyback spread | Difference between dealer bid and current spot | Only when you sell back to the dealer |
Sourced from public fee schedules at Equity Trust, STRATA Trust, GoldStar Trust, Delaware Depository, and Brinks Global Services, plus generic 403(b) annuity contract disclosures. Confirm current pricing with each provider before signing. Checked June 2026.
The dealer markup and the annuity surrender charge are the two line items with the widest range. Common bullion coins and bars carry tighter spreads. Premium or proof coins sold as exclusive or limited carry markups that can be several times higher. A clean 403(b) rollover gets undone fast if the annuity surrender charge is 6 percent and the metal is then bought at a 25 percent markup.
2026 IRS 403(b) contribution ceilings
The 2026 contribution limits do not directly control a rollover. They do tell you how much room you have to keep saving inside the 403(b) before you roll, and they help size the rest of your retirement picture. The IRS updated the limits for cost-of-living adjustments; the numbers below reflect the current tax year.
The 72,000 dollar annual additions cap combines employer and employee contributions. Most public school 403(b) plans do not receive employer contributions because Texas educators are already covered by TRS on the pension side. The 24,500 dollar elective deferral cap is usually the binding number for the employee.
Check whether your account is eligible
Before you call a provider, confirm the source 403(b) is actually eligible to roll. The screening tool below walks through the plan type, employment status, and basic timing rules. It is a triage step, not legal or tax advice.
Can you roll your account into a gold IRA? Eligibility checker
Most retirement money can move into a gold IRA once it is an eligible rollover distribution. Pick your account and situation for a general answer. Always confirm the specifics with your plan administrator or custodian.
General guidance only, not tax or financial advice. Eligibility depends on your specific plan document and IRS rules; confirm with your plan administrator and a tax advisor. A direct trustee-to-trustee transfer avoids the 60-day rule and 20% withholding.
Picking a company that explains every fee up front is the first step. Get the free gold IRA company checklist.
Worked example: a Houston teacher rolls 180,000 dollars
Your next step
If a 403(b)-to-gold-IRA rollover looks like the right move, the highest-leverage action is to vet the provider before signing anything. Augusta Precious Metals is our primary affiliate partner and publishes a free gold IRA company checklist built for that vetting step.
Get the Augusta Precious Metals gold IRA company checklistSponsored link. Use it to evaluate any provider you call, including Augusta itself. Past performance is not a guarantee of future results.When rolling a 403(b) to a gold IRA is a bad idea
A gold IRA is not the right move for every 403(b) participant. The patterns where it tends to backfire are repeatable. We list them here, with no CTA attached.
Your 403(b) is an annuity contract with a live surrender charge. A 6 percent surrender charge on a 200,000 dollar balance is 12,000 dollars off the top before the rollover even begins. Wait for the surrender schedule to drop or accept the cost with eyes open.
You are between 55 and 59 and a half and need the cash. Leaving the 403(b) intact preserves the Rule of 55 penalty-free path. Rolling to an IRA closes it on the rolled money.
You have an outstanding 403(b) loan. The unpaid balance can become a deemed distribution if not handled before the rollover. Settle the loan first or plan the offset window carefully.
Your balance is small. A 12,000 dollar IRA carrying a 200 dollar annual custodian fee and a 150 dollar storage fee is paying close to 3 percent per year on flat operating costs alone, before any dealer markup. Fee drag compounds.
You need the money inside 5 years. Physical metal inside an IRA is liquid in principle and slow in practice. Buyback spreads and depository release timing add friction.
You are already over-concentrated in gold. If a sizable share of your net worth is already in physical metals, more inside an IRA may compound, not reduce, single-asset risk.
The dealer is pushing premium or proof coins. Wide markups on graded coins are the most common way a gold IRA goes wrong. Stay with common bullion coins and bars.
You want the metal at home. An IRA cannot hold metal at your house. The 2021 Tax Court ruling in McNulty v. Commissioner confirmed that home storage triggers a full distribution.
403(b) to gold IRA FAQ
Can I roll my 403(b) into a gold IRA while I am still working there?
Usually no, unless the plan permits an in-service withdrawal after age 59 and a half or of specific sub-accounts such as rollover-contribution money. The summary plan description and the plan administrator are the source of truth. Most 403(b)-to-gold-IRA rollovers happen after separation from service.
Is a 403(b)-to-gold-IRA rollover taxable?
A direct rollover between accounts of the same tax type is not taxable. Pre-tax 403(b) dollars roll to a traditional gold IRA tax-free. Roth 403(b) dollars roll to a Roth gold IRA tax-free. A traditional-to-Roth conversion at rollover is taxable in the year you do it; consult your CPA.
What is the 20 percent withholding rule on a 403(b) distribution?
IRC Section 3405(c) requires a 403(b) plan to withhold 20 percent for federal tax on any eligible rollover distribution paid to the participant. A direct rollover avoids it because the check goes to the receiving IRA custodian, not to you. An indirect rollover triggers the 20 percent withholding and starts the 60-day redeposit clock.
Does Texas tax a 403(b) rollover or distribution?
No. Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. A botched rollover that becomes a taxable distribution is taxed by the IRS only; the 10 percent federal early-withdrawal penalty still applies if you are under 59 and a half and no exception fits.
Can I roll a 403(b) annuity contract even if it has surrender charges?
Yes, but the surrender charge is deducted from the rollover amount by the insurance company before the check is sent. The surrender charge is not a taxable event by itself; it is simply lost value inside the contract. Ask for a current surrender schedule in writing before deciding.
Will I lose the Rule of 55 by rolling the 403(b)?
Yes, on the rolled money. The Rule of 55 is an employer-plan exception to the 10 percent federal early-withdrawal penalty. Once the balance moves into an IRA, the IRA's distribution rules apply, and the 10 percent penalty reappears for withdrawals before age 59 and a half unless a different exception fits.
Can I roll only part of my 403(b) into a gold IRA?
Most 403(b) plans support a partial direct rollover. The remaining balance stays inside the 403(b) under the same rules it has today. A partial rollover is the standard tool for keeping the Rule of 55 alive on the cash portion while moving another portion into a gold IRA.
Does the 403(b) rollover affect my TRS or ERS pension?
No. Public pension systems in Texas such as the Teacher Retirement System of Texas and the Employees Retirement System of Texas are separate defined-benefit plans. A 403(b) is a supplemental defined-contribution account. Rolling the 403(b) into a gold IRA does not touch the pension itself.
Sources
- Internal Revenue Service. Topic No. 413, Rollovers from Retirement Plans. irs.gov/taxtopics/tc413. Checked June 2026.
- Internal Revenue Service. Retirement Topics: 403(b) Contribution Limits. irs.gov 403(b) contribution limits. Checked June 2026.
- Internal Revenue Service. Publication 571: Tax-Sheltered Annuity Plans (403(b) Plans) for Employees of Public Schools and Certain Tax-Exempt Organizations. irs.gov/publications/p571. Checked June 2026.
- Internal Revenue Service. Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs). irs.gov/publications/p590a. Checked June 2026.
- Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs). irs.gov/publications/p590b. Checked June 2026.
- Internal Revenue Service. Topic No. 558, Additional Tax on Early Distributions from Retirement Plans. irs.gov/taxtopics/tc558. Checked June 2026.
- Internal Revenue Code Section 403(b). Tax-sheltered annuities and custodial accounts. Available through the Office of the Law Revision Counsel. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 402(c). Rollovers of eligible distributions. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 3405. Withholding on pensions, annuities, and certain other deferred income. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 408(m). Collectibles rule and bullion exception. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 72(t)(2)(A)(v) and 72(t)(10). Separation-from-service exceptions to the 10 percent additional tax. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 402(g)(7). 15-year service catch-up for qualifying 403(b) employees. uscode.house.gov. Checked June 2026.
- United States Tax Court. McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021). Home-storage IRA confirmed as a full distribution.
- Texas Bullion Depository. IRA Storage Services. texasbulliondepository.gov/ira-storage. Checked June 2026.
- Office of the Texas Comptroller of Public Accounts. Texas Bullion Depository overview. comptroller.texas.gov. Checked June 2026.
- Texas Constitution, Article 8, Section 24. Prohibition on a state personal income tax. statutes.capitol.texas.gov. Checked June 2026.
- Teacher Retirement System of Texas. Benefits handbook and rollover guidance. trs.texas.gov. Checked June 2026.