Gold IRAs for Texas State Employees

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Short on time? The essentials

• Any active Texas state employee can open a self-directed IRA today and use annual contributions to buy IRS-approved gold, silver, platinum, or palladium meeting IRC Section 408(m) fineness rules.
• The 2026 annual IRA ceiling is 7,500 dollars, or 8,600 dollars at age 50 and older. That limit is combined across all of the person's IRAs (traditional and Roth), not per account.
• State of Texas Retirement is a defined benefit pension administered by ERS. Membership is mandatory for most state agency employees. The monthly annuity itself cannot leave the plan; the underlying member account balance can, but only after separation.
• Groups 1, 2, and 3 (hired before September 1, 2022) accrue 2 percent annual interest on the member account balance. Group 4 (hired on or after September 1, 2022) uses a cash balance structure at 4 percent, with up to 3 percent extra tied to a five-year investment lookback.
• An ERS refund is all-or-nothing on the balance. The member can take part as cash and roll the rest to a traditional IRA. Direct rollover of the taxable portion avoids the 20 percent federal withholding under IRC Section 3405. ERS excludes rollovers to a Roth IRA, a SIMPLE IRA, or an education IRA on a direct withdrawal.
• Texa$aver 401(k) and 457 balances at a former state agency are eligible for direct rollover into a self-directed IRA that holds physical bullion. University employees who elected the Optional Retirement Program hold a portable 403(b) that is rollable on the same terms.
• Only the self-directed IRA structure can legally hold physical metal. A qualified custodian buys the bullion and an IRS-approved depository stores it. Home storage of IRA metal is a full distribution, per the 2021 Tax Court ruling in McNulty v. Commissioner.
• Texas has no state personal income tax. Federal rules control every taxable event: the 10 percent early-distribution penalty, ordinary income tax at withdrawal, and required minimum distributions from a traditional IRA at age 73 or age 75 under SECURE 2.0.
• The Texas Bullion Depository in Leander is available for IRA storage through Lone Star Tangible Assets LP, which received IRS approval as a nonbank trustee in 2023. Equity Trust Company is the first self-directed IRA custodian working with the depository, checked June 2026.

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On this page

• Can a Texas state employee have a gold IRA at all?
• The three retirement pillars for a Texas state employee
• State of Texas Retirement: what can and cannot move
• The four ERS retirement groups
• Texa$aver 401(k) and 457: the supplemental path
• The Optional Retirement Program for higher-education staff
• Annual IRA contributions on the side
• The 20 percent federal withholding, visualized
• Table: which state-employee accounts can move to a gold IRA
• What metal an IRA can actually hold
• Opening a gold IRA as a Texas state employee in eight steps
• Texas advantages: no state tax and the Texas Bullion Depository
• Check whether a distribution is eligible to roll
• Worked example: an Austin state employee at separation
• When a gold IRA is a bad idea for a Texas state employee
• Your next step
• Texas state employee gold IRA FAQ

Can a Texas state employee have a gold IRA at all?

Yes. A gold IRA is a self-directed IRA that holds IRS-approved bullion or coins. Any Texas resident with earned income can open one and add annual contributions. Working for a state agency changes what other accounts can be moved into it, not whether the IRA can exist.

The confusion usually comes from the State of Texas Retirement system administered by ERS. That system is a defined benefit pension. Its monthly annuity in retirement is a lifetime benefit, not a balance the member can withdraw at will. So an active state employee cannot just move a chunk of ERS Texas to a gold IRA in the middle of a career.

Two funding doors are open regardless of ERS status. Annual out-of-pocket contributions can start today, subject to the standard IRA limit. Rollable dollars from a Texa$aver 401(k) or 457, an ORP 403(b), or a prior employer plan can move any time that account is no longer active and locked by the current employer.

The three retirement pillars for a Texas state employee

ERS refers to the retirement structure as a three-legged stool. Understanding which leg holds a given dollar is the first step before any rollover call. The three pillars sit under different rules.

The first pillar is State of Texas Retirement, a mandatory defined benefit pension under Government Code Chapter 811. Contributions come out of every paycheck and the employer matches. In exchange, the employee earns a lifetime monthly annuity at retirement, sized under a plan-specific benefit formula.

The second pillar is Texa$aver, ERS's voluntary supplemental savings program. Texa$aver contains a 401(k) plan and a governmental 457 plan. Both accept elective salary deferrals and are administered on a defined contribution basis. Some higher-education institutions offer Texa$aver as well.

The third pillar is personal savings and any IRA the employee already owns. A self-directed traditional or Roth IRA sits inside this pillar. Contribution ceilings, deduction rules, and Roth phase-outs are set by federal law. Texas adds no state layer on top.

State of Texas Retirement: what can and cannot move

ERS itself is not rollable while a member is active. IRS Publication 575 treats a series of substantially equal periodic payments over a life expectancy as ineligible for rollover. That is exactly what an ERS Texas retirement annuity is once it starts. So a working state employee who plans to draw an ERS annuity someday cannot roll that future income stream into a gold IRA.

Two ERS cash forms are eligible for rollover. A Partial Lump Sum Option elected at retirement is an eligible rollover distribution. It can be sized as any whole number of months from 1 to 36 of the standard annuity. The lump sum reduces the future monthly annuity actuarially.

The second is a withdrawal of the accumulated member account after the member leaves state agency employment. ERS pays this through the Retirement Account Withdrawal Disclaimer process, filed in ERS OnLine. A vested member who withdraws forfeits the future annuity. A non-vested member gets only the personal contribution balance plus interest, since the state match stays with ERS.

Three constraints matter on the withdrawal path. ERS cannot process the payment until at least 30 days after the last date of state service. It takes an additional 15 days after the notarized disclaimer is approved to mail the check. And ERS excludes rollovers into a Roth IRA, a SIMPLE IRA, or an education IRA on a direct withdrawal. The receiving account has to be a traditional IRA or another qualified pre-tax plan.

The four ERS retirement groups

Each ERS member sits in one of four groups, set by the first hire date at a participating state agency. The group drives benefit formula, eligibility for retirement, and the interest rate credited to the member account balance.

Groups 1, 2, and 3 cover members hired before September 1, 2022, under a traditional final-average-salary pension formula. Each of those groups accrues 2 percent annual interest on the member account balance. Group 4 is the cash balance plan for members hired on or after September 1, 2022. Its base interest rate is 4 percent, with up to 3 percent extra gain-share tied to a five-year lookback on ERS investment performance.

The group rule matters after a withdrawal. If a member withdraws the balance and later returns to state employment, ERS re-enrolls them in Group 4 rather than their original group. That switch can cost a legacy Groups 1 to 3 member the older benefit formula. Withdrawn service credit can only be repurchased if the returning member also participates in the Proportionate Retirement Program.

Texa$aver 401(k) and 457: the supplemental path

Texa$aver is the ERS-sponsored supplemental savings program. It contains two plans, a 401(k) and a governmental 457. Both accept elective salary deferrals in addition to what the state pays into the ERS pension. Empower Retirement is the recordkeeper. Some higher-education campuses participate in Texa$aver, subject to institutional adoption.

Rollover eligibility on either Texa$aver plan opens after separation from state agency service. IRC Section 402(c) treats a 401(k) as an eligible retirement plan for rollover purposes. A governmental 457 is also eligible under Section 402(c)(8)(B)(vii). The direct-rollover mechanics are identical across both, and the receiving account can be a traditional IRA holding physical bullion.

Two in-service exceptions matter. A member age 59 and a half or older can generally take an in-service distribution from a 401(k) that permits it, and that distribution is eligible for rollover. Hardship distributions from a 401(k) are usually not eligible rollover distributions and cannot move to a gold IRA. Confirm the specific plan rules in the Texa$aver summary plan description before filing.

The Optional Retirement Program for higher-education staff

Faculty, librarians, and eligible administrators at Texas public universities and colleges can elect the Optional Retirement Program (ORP) instead of TRS or ERS. ORP is a defined contribution 403(b) plan. The employee picks a carrier from an institution-approved list. Contributions and employer match land in an individual account, portable across ORP employers.

An ORP participant who leaves higher-education service can roll the 403(b) into a self-directed IRA under IRC Section 402(c). The direct-rollover mechanics are the same as for a Texa$aver 401(k) or an ERS refund of the taxable portion. Once inside the self-directed IRA, the balance can buy IRS-approved bullion held by an IRS-approved depository.

One boundary matters. An ORP election is generally irrevocable during the same higher-education employment. Switching between ORP and TRS mid-career is not allowed on most Texas campuses. Confirm with the institution's benefits office before filing anything, because rules differ across campuses and can change with legislation.

Annual IRA contributions on the side

Annual contributions are the most reliable way for a still-working Texas state employee to start building a gold IRA position. The 2026 ceiling is 7,500 dollars per year, plus a 1,100 dollar catch-up at age 50 and older, for a total of 8,600 dollars. That ceiling is combined across traditional and Roth IRAs, not per account.

Choosing traditional or Roth is a tax-timing decision. A traditional IRA deduction reduces current-year federal taxable income if the deduction limits allow, and the distribution is federally taxable later. A Roth contribution is after-tax now and qualified distributions are federally tax-free later. Texas adds no state layer either way.

Roth IRA income phase-outs still apply. For tax year 2026, the ability to contribute directly to a Roth IRA phases out at higher modified adjusted gross income levels. Confirm the current phase-out ranges on IRS Publication 590-A before signing. A backdoor Roth conversion path exists but adds its own paperwork and pro-rata considerations.

The 20 percent federal withholding, visualized

The single most expensive mistake on a state employee rollover is letting the sending plan cut the check to the member rather than to the receiving custodian. IRC Section 3405 forces the plan to withhold 20 percent of any eligible rollover distribution that goes directly to the participant. That is real cash the member has to front from personal savings to complete the rollover on time.

The lesson is procedural. Ask the sending plan (ERS, Texa$aver, or the ORP carrier) to make the check payable to the receiving custodian, not to you. On a Texa$aver rollover the check reads something like FBO of the participant, care of the receiving IRA custodian. That single form choice keeps the 20 percent inside the retirement wrapper.

Table: which state-employee accounts can move to a gold IRA

The table below summarizes the rollover eligibility of accounts a Texas state employee commonly holds. Read it as a screening step before any provider call. Confirm the current rules with the specific plan.

What metal an IRA can actually hold

IRC Section 408(m) treats collectibles as prohibited investments inside an IRA and then carves out an exception for bullion and certain coins meeting a fineness threshold. Gold must be at least 99.5 percent pure. Silver is 99.9 percent. Platinum and palladium are 99.95 percent.

Two coins are named statutory exceptions. The American Gold Eagle is IRA-eligible at 91.67 percent purity by statute, which is 22-karat. The American Silver Eagle is IRA-eligible at 99.9 percent. Proof Eagles qualify only when held in original mint packaging with the certificate.

Common eligible bars come from refiners approved by NYMEX, COMEX, LBMA, or produced by a national government mint. Common names include PAMP Suisse, Credit Suisse, Valcambi, the Royal Canadian Mint, and the Perth Mint. Common eligible coins include the 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.

Not eligible: rare or numismatic coins bought for collectible value, pre-1965 junk silver, graded slabbed coins carrying high premiums over metal value, and the South African Krugerrand at 91.67 percent gold with no statutory exception. Stick with common bullion for a first gold IRA position.

Opening a gold IRA as a Texas state employee in eight steps

The order below covers both the annual-contribution path and the rollover path from an ERS refund, a Texa$aver 401(k) or 457, or an ORP 403(b). The mechanical sequence at the custodian is the same. What changes is where the funding comes from.

1. Confirm which money you can move. Direct pay contributions are always available up to the annual limit. A rollover requires an eligible distribution: an ERS PLSO at retirement, an ERS member account withdrawal after separation, or a Texa$aver 401(k), 457, or ORP 403(b) balance from a former state employer.
2. Pick a self-directed IRA custodian. Precious-metals IRAs require a qualified non-bank trustee or specialty custodian. Common Texas-facing names include Equity Trust Company, STRATA Trust, and GoldStar Trust. Equity Trust is the first custodian working with the Texas Bullion Depository.
3. Open the account and pick traditional or Roth. A traditional self-directed IRA is federally tax-deferred. A Roth self-directed IRA is after-tax now and federally tax-free later on qualified distributions. Texas has no state income tax layer either way. An ERS refund can only enter a traditional IRA on a direct rollover, not a Roth.
4. Choose a gold IRA dealer. The dealer sources IRS-approved bullion and coordinates with your custodian. Verify the dealer partners with the custodian you picked and quotes tight spreads on common bullion coins and bars.
5. Fund the account. For an annual contribution, wire or ACH from personal savings up to the 2026 limit. For a rollover, file the ERS Retirement Account Withdrawal Disclaimer in ERS OnLine, the PLSO rollover election at retirement, or the Texa$aver or ORP direct-rollover form. The receiving custodian signs to certify the plan can accept the rollover.
6. Place the metal order. Once cash lands inside the new IRA, instruct the custodian to pay the dealer for IRS-approved bullion or coins meeting IRC Section 408(m)(3) fineness. Gold must be at least 99.5 percent pure, silver 99.9 percent, platinum and palladium 99.95 percent, with statutory exceptions for the American Gold Eagle and American Silver Eagle.
7. Ship to an IRS-approved depository. The dealer ships the metal directly to the depository the custodian instructs. The Texas Bullion Depository in Leander is available for IRA storage through Lone Star Tangible Assets. Home storage is a full distribution, per McNulty v. Commissioner (2021).
8. File the right forms next April. A rollover appears on Form 1099-R from the sending plan (code G for a direct rollover) and Form 5498 from the receiving custodian. Report the gross amount on Form 1040 line 5a and the taxable amount on line 5b. An annual contribution appears on Form 5498 as well.

Texas advantages: no state tax and the Texas Bullion Depository

Two Texas features change the wrapper around any federal IRA move.

The first is the constitutional prohibition on a Texas state personal income tax under Article 8, Section 24 of the Texas Constitution. A traditional IRA distribution taxed federally later, a botched indirect rollover that becomes taxable, a required minimum distribution after age 73, and an early withdrawal subject to the 10 percent federal penalty are all federal only for a Texas resident.

The second is the state-run Texas Bullion Depository. Authorized by House Bill 483 signed by Governor Greg Abbott on June 12, 2015, the depository is an agency of the State of Texas. It has operated since 2017 on a purpose-built campus in Leander, north of Austin, with Lone Star Tangible Assets LP as the depository contractor.

IRA storage is available. The depository states directly that it is available for IRA storage through its operator Lone Star Tangible Assets, which received IRS approval as a nonbank trustee in 2023. Equity Trust Company is the first self-directed IRA custodian working with the depository. The depository has said it plans to expand custodial relationships over time; verify the current list with the depository before filing.

Storage features published on the depository's site include a Class 3 vault (the highest security rating), biometric access, and 24/7 surveillance. Insurance is through Lloyd's of London. IRA storage fees are typically negotiated between the custodian, the gold dealer, and the depository contractor, and can differ from the standard storage schedule.

Check whether a distribution is eligible to roll

Before calling a provider, screen the money against the federal rollover rules. The tool below walks through the eligibility questions and timing constraints. 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.

Account typeTraditional IRARoth IRASEP IRASIMPLE IRA401(k) or 403(b) from a former employer401(k) or 403(b) at your current employerGovernmental 457(b)Thrift Savings Plan (TSP)Pension lump sum or refund (after you separate) Your situationSeparated from that employerStill employed there, under 59 and a halfStill employed there, age 59 and a half or older

Check eligibility

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: an Austin state employee at separation

When a gold IRA is a bad idea for a Texas state employee

Your next step

If a gold IRA looks like the right allocation for part of your state-employee retirement dollars, the highest-leverage next step is to vet the provider before filing any form. 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.

Texas state employee gold IRA FAQ

Sources

1. Internal Revenue Service. Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs). irs.gov/publications/p590a. Checked June 2026.
2. Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs). irs.gov/publications/p590b. Checked June 2026.
3. Internal Revenue Service. Publication 575: Pension and Annuity Income. irs.gov/publications/p575. Checked June 2026.
4. Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions. irs.gov/retirement-plans. Checked June 2026.
5. Internal Revenue Service. Topic No. 413, Rollovers from Retirement Plans. irs.gov/taxtopics/tc413. Checked June 2026.
6. Internal Revenue Service. Topic No. 558, Additional Tax on Early Distributions from Retirement Plans. irs.gov/taxtopics/tc558. Checked June 2026.
7. Internal Revenue Code Section 402(c). Rollovers from qualified plans. uscode.house.gov. Checked June 2026.
8. Internal Revenue Code Section 401(a)(31). Direct rollover option. uscode.house.gov. Checked June 2026.
9. Internal Revenue Code Section 3405. Twenty percent mandatory federal withholding on eligible rollover distributions paid to the participant. uscode.house.gov. Checked June 2026.
10. Internal Revenue Code Section 408(m). Collectibles rule and bullion exception. uscode.house.gov. Checked June 2026.
11. Internal Revenue Code Section 72(t)(2)(A)(v). Separation-from-service exception at age 55. uscode.house.gov. Checked June 2026.
12. Internal Revenue Code Section 219(b)(5)(B). IRA catch-up contribution for taxpayers age 50 and older. uscode.house.gov. Checked June 2026.
13. Employees Retirement System of Texas. State of Texas Retirement for Active Employees. ers.texas.gov/Active-Employees/Retirement/State-of-Texas-Retirement. Checked June 2026.
14. Employees Retirement System of Texas. Withdraw Your ERS Retirement. ers.texas.gov/Active-Employees/Retirement/Withdraw-Your-ERS-Retirement. Checked June 2026.
15. Employees Retirement System of Texas. Retirement Payment Options. ers.texas.gov/active-employees/retirement/retirement-payment-options. Checked June 2026.
16. Employees Retirement System of Texas. Texa$aver 401(k) / 457 Program. ers.texas.gov/active-employees/texas-savings. Checked June 2026.
17. Texas Government Code Chapter 811. Employees Retirement System of Texas, general provisions. statutes.capitol.texas.gov. Checked June 2026.
18. Texas Constitution, Article 8, Section 24. Prohibition on a state personal income tax. statutes.capitol.texas.gov. Checked June 2026.
19. United States Tax Court. McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021). Home-storage IRA confirmed as a full distribution.
20. Texas Bullion Depository. IRA Storage Services. texasbulliondepository.gov/ira-storage. Checked June 2026.
21. Office of the Texas Comptroller of Public Accounts. Texas Bullion Depository overview. comptroller.texas.gov. Checked June 2026.

By the Harry’s Coins Editorial team. Last reviewed June 2026.