Rolling a TRS (Teacher Retirement System of Texas) Account 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

• Your monthly TRS annuity is a lifetime benefit and is not eligible for rollover. Only cash distributions from TRS can move to a gold IRA.
• The Partial Lump-Sum Option (PLSO) lets an eligible retiree elect a lump sum equal to 12, 24, or 36 months of the standard service retirement annuity. TRS states directly that the PLSO distribution is eligible to be rolled over to another eligible retirement plan.
• PLSO eligibility depends on membership tier. Tier 1, Tier 4, and Tier 6 members must be eligible for an unreduced service retirement. Tier 2, Tier 3, and Tier 5 members must be eligible for service retirement and have combined age plus years of service credit total at least 90.
• A refund of your accumulated member contributions plus interest is available after you permanently terminate all TRS-covered employment. TRS uses Form 6 (Application for Refund) and Form 6A (Refund Rollover Election). Partial withdrawals are not allowed on a refund.
• A direct rollover avoids the 20 percent mandatory federal income tax withholding that IRC Section 3405 applies to any eligible rollover distribution paid to the retiree, and it skips the 60-day redeposit clock.
• Once inside the self-directed IRA, cash buys IRS-approved bullion or coins meeting IRC 408(m)(3) fineness. Gold minimum purity is 99.5 percent; silver 99.9 percent; platinum and palladium 99.95 percent. The American Gold Eagle qualifies at 91.67 percent by statute.
• Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. The state-run Texas Bullion Depository accepts IRA storage through its operator Lone Star Tangible Assets, which received IRS approval as a nonbank trustee in 2023.
• Home storage of IRA metal is not allowed. The 2021 Tax Court ruling in McNulty v. Commissioner treats it as a full distribution.

See the Augusta Precious Metals gold IRA company checklistAugusta is our primary affiliate partner. The free checklist gives you a clean way to vet any provider you call about a TRS PLSO or refund rollover.Print / save as PDF

On this page

• What TRS cash forms can move to a gold IRA
• The Partial Lump-Sum Option in detail
• The refund of your member contributions in detail
• The TRS-to-gold-IRA rollover in eight steps
• Direct vs indirect: the 20 percent withholding rule
• The age 55 penalty exception and what happens when you roll
• Social Security offsets: WEP, GPO, and what a rollover does not change
• What gold the IRA can hold
• Texas advantages: zero state tax and the Texas Bullion Depository
• TRS PLSO amounts at a glance
• The gold IRA fee stack you will see
• Check whether your TRS distribution is eligible to roll
• Worked example: a Houston teacher rolls a 24-month PLSO
• When rolling a TRS distribution into a gold IRA is a bad idea
• TRS to gold IRA FAQ

What TRS cash forms can move to a gold IRA

TRS is a defined benefit pension. It pays a monthly annuity for life once a member retires, calculated from a service credit formula. That monthly annuity is not eligible for rollover. It is not a lump sum, and IRS Publication 575 excludes any distribution that is part of a series of substantially equal payments over the member's life expectancy.

Two TRS cash forms are eligible for rollover to a self-directed IRA holding IRS-approved bullion. The first is a Partial Lump-Sum Option elected at retirement. The second is a full refund of the member's accumulated contributions after permanent separation from all TRS-covered employment.

A third path exists only in narrow cases. If a TRS retiree elects the PLSO in two or three annual payments, they can accelerate the remaining payments using a form provided by TRS. Each accelerated payment is still a PLSO distribution and follows the same rollover rules.

The Partial Lump-Sum Option in detail

TRS defines the Partial Lump-Sum Option as a one-time cash distribution paid at retirement, sized as 12, 24, or 36 months of the member's standard service retirement annuity. Once elected, the monthly annuity is reduced for the life of the member to reflect the lump sum taken up front.

Eligibility depends on the member's TRS tier and the type of retirement. TRS lists two eligibility paths. Tier 1, Tier 4, and Tier 6 members must be eligible for an unreduced service retirement. Tier 2, Tier 3, and Tier 5 members must be eligible for service retirement and have combined age plus years of service credit total at least 90.

Two categories are excluded. A member retiring under the Proportionate Retirement Law is not eligible to elect a PLSO. A disability retiree is not eligible to select a PLSO either. Confirm your tier and your eligibility path in MyTRS or with a TRS counselor before you rely on any figure.

Payment timing depends on the size elected. A 12-month PLSO is paid at the same time as the member's first monthly annuity payment. A 24-month PLSO can be taken in one or two annual payments. A 36-month PLSO can be taken in one, two, or three annual payments.

The TRS published example shows the mechanics. Take a member who retires at age 60 with a 2,000 dollar per month standard annuity. If she elects the 12-month PLSO, she receives a 24,000 dollar lump sum plus a reduced annuity of 1,833.40 dollars per month. That reduced figure is 2,000 dollars times 91.67 percent.

Rollover mechanics use a dedicated TRS form. TRS states that the PLSO distribution is eligible to be rolled over to another eligible retirement plan, and it provides the appropriate rollover form no earlier than two months prior to the member's retirement date. A self-directed IRA is an eligible retirement plan under IRC Section 402(c) and 401(a)(31).

The refund of your member contributions in detail

A refund is available only to a member who has permanently terminated employment with every TRS-covered employer and has not applied for or received a promise of employment with another TRS-covered employer. It is not available to active teachers or to retirees drawing an annuity.

The refund pays the accumulated member contributions plus interest credited to the account. TRS states directly that partial withdrawals are not allowed. It is an all-or-nothing election. Choosing the refund also terminates TRS membership and gives up any future annuity that would have been built from that service.

The paperwork uses two forms. Form TRS 6 is the Application for Refund and must be signed and notarized. TRS attaches its Special Tax Notice Regarding Rollover Options under TRS to Form 6. Form TRS 6A is the Refund Rollover Election used to move all or part of the refund directly to another eligible retirement plan.

On Form 6A the member specifies the amount to be rolled and the receiving plan. A representative of the receiving retirement plan must also sign the form to certify that the plan is eligible to receive the rollover of funds. That signature is normally provided by the self-directed IRA custodian.

Two operational notes matter for a rollover. TRS processes the refund only after the last employer deposit has been reconciled. And the refund may be held if TRS records show re-employment with a TRS-covered employer, or if the member owes money to the state for delinquent child support or federal or state taxes.

The TRS-to-gold-IRA rollover in eight steps

The mechanical sequence is the same whether the TRS cash is a PLSO election at retirement or a refund of member contributions after separation. The order of operations does not change with the funding source.

1. Confirm the TRS distribution is eligible for rollover. A PLSO election and a full refund of member contributions are both eligible rollover distributions. A monthly TRS annuity is not.
2. Open a self-directed IRA. A precious-metals IRA requires a qualified non-bank trustee or self-directed IRA custodian. Equity Trust Company, STRATA Trust, and GoldStar Trust are commonly used with Texas accounts, and Equity Trust is the current custodian for storage at the Texas Bullion Depository.
3. Pick a gold IRA dealer. The dealer sources the metal and coordinates with the custodian. Verify the dealer partners with your chosen custodian and quotes tight spreads on common bullion.
4. Ask TRS for the appropriate rollover form. For a PLSO, TRS will send the rollover form no earlier than two months before your retirement date. For a refund, TRS sends Form 6A along with the Special Tax Notice attached to Form 6.
5. Complete Form 6A (refund) or the PLSO rollover form. Enter the receiving custodian by name, "for the benefit of" your new IRA account number, and the amount to be rolled. Have the receiving custodian sign to certify the plan is eligible to receive the rollover.
6. Return the form to TRS and let the direct rollover fund the IRA. The check or wire is made payable to the custodian, not to you. No federal withholding applies. No 60-day clock runs.
7. Place the metal order. Once the cash arrives inside the new IRA, instruct the custodian to pay the dealer for IRS-approved bullion or coins meeting IRC 408(m)(3) fineness rules. The dealer ships to an IRS-approved depository.
8. File the right forms next April. TRS issues Form 1099-R with distribution code G for a direct rollover. The receiving custodian issues Form 5498. Report the gross amount on Form 1040 line 5a with a taxable amount of zero on line 5b.

Direct vs indirect: the 20 percent withholding rule

Federal rollover mechanics offer two paths. A direct rollover sends the TRS cash from the plan straight to the receiving IRA custodian. No withholding applies. No 60-day clock starts. This is the default recommendation on any TRS PLSO or refund rollover.

A payment made to the retiree instead triggers IRC Section 3405. The plan must withhold 20 percent for federal income tax before releasing the check. The retiree then has 60 days to redeposit the full pre-withholding amount into the new IRA. The missing 20 percent has to come from personal savings during that window.

The 20 percent withholding is later credited against the federal tax bill at filing. If the retiree redeposited the full pre-withholding amount on time, the credit returns as part of the refund. If the retiree redeposits only the 80 percent that arrived, the missing 20 percent is treated as a taxable distribution. A 10 percent federal early-withdrawal penalty stacks on top for retirees under age 59 and a half unless an exception fits.

Failing the 60-day window has narrow relief. IRS Revenue Procedure 2016-47 and later guidance allow a self-certification waiver in a defined list of hardships, such as a plan administrator error or a serious illness. Do not plan on that safety net.

The age 55 penalty exception and what happens when you roll

IRC Section 72(t)(2)(A)(v) allows a penalty-free distribution from a qualified employer plan on a member who separates from service in or after the calendar year they turn 55. TRS is a qualified plan. A refund taken directly from TRS at age 55 or older is not subject to the 10 percent federal early-distribution penalty. The distribution is still taxable federally.

The exception does not survive a rollover. Once TRS cash moves into an IRA, the IRA distribution rules apply. The 10 percent penalty reappears on any IRA withdrawal before age 59 and a half unless a different IRA-side exception fits.

Practical implication for a Texas teacher separating between 55 and 59 and a half. If some of the cash is needed for living expenses within the next few years, keeping a portion of the refund inside a different qualified plan preserves the age 55 penalty-free path. The balance can still be rolled into a gold IRA. TRS itself does not allow a partial refund, so this planning is usually run through a next-employer 401(k) or 403(b) if one is available.

Social Security offsets: WEP, GPO, and what a rollover does not change

Many TRS members do not pay Social Security tax on their teaching wages. Two federal rules can then reduce Social Security benefits earned from other work: the Windfall Elimination Provision (WEP) reduces the retiree's own worker benefit, and the Government Pension Offset (GPO) reduces spousal or survivor benefits. Both are administered by the Social Security Administration.

Rolling a TRS PLSO or a TRS refund to a gold IRA does not turn off WEP or GPO. The offset is triggered by receiving a pension from work not covered by Social Security. Taking the money as a lump sum and rolling it to an IRA does not remove that "non-covered pension" status for benefit-calculation purposes.

Two nuances are worth confirming with SSA directly. A member who takes a full refund of contributions and terminates TRS membership may see a different WEP treatment than one who elects an annuity. And WEP calculations changed under the Social Security Fairness Act signed in January 2025. Ask SSA how your record will be treated on the actual facts.

What gold the IRA can hold

IRC Section 408(m) generally bans collectibles inside an IRA and then carves out an exception for bullion and certain coins that meet 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 purity, which is 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 produced by 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, and it is not IRA-eligible.

Texas advantages: zero state tax and the Texas Bullion Depository

Two Texas features change the wrapper around a federal rollover.

Article 8, Section 24 of the Texas Constitution prohibits a state personal income tax. Any taxable IRA distribution, including a botched indirect rollover, a future required minimum distribution, or a partial cash retention from a TRS PLSO, is taxed at the federal level only. A Texas resident does not pay a state layer on top.

Texas also runs its own bullion depository. The Texas Bullion Depository is an agency of the State of Texas, authorized by House Bill 483 signed by Governor Greg Abbott on June 12, 2015. It has operated since 2017 on a purpose-built campus in Leander, Texas, with Lone Star Tangible Assets LP as the depository contractor.

IRA storage is available at the depository. Lone Star Tangible Assets received IRS approval as a nonbank trustee in 2023, and the depository states plainly that it is available for IRA storage through its operator. Equity Trust Company is the first self-directed IRA custodian that works with the Texas Bullion Depository, and Texas Bullion Depository notes it plans to add custodial relationships over time.

Storage features published on the depository's site include a Class 3 vault (the highest security rating), biometric access, and 24/7 surveillance. Storage is segregated, without commingling of client metal. Insurance is through Lloyd's of London and covers theft, fire, flood, and natural disasters. IRA storage fees are negotiated between the custodian, the gold dealer, and the depository contractor. They can differ from the standard storage schedule.

TRS PLSO amounts at a glance

The TRS example is a clean anchor for what a Partial Lump-Sum Option produces at the three election sizes. It uses a 2,000 dollar per month standard service retirement annuity at age 60 and applies the 12-month, 24-month, and 36-month PLSO amounts. The chart below shows those three lump sums.

Two clarifications on the chart. The three bars scale linearly with the 12-month, 24-month, and 36-month election because the TRS formula multiplies the standard annuity by that number of months. And the reduction to the monthly annuity is applied for the life of the member, so the lump-sum decision is permanent.

The gold IRA fee stack you will see

TRS itself does not charge a member a visible administration fee on the PLSO or on a refund; the plan trust absorbs those costs. A self-directed gold IRA carries its own fee stack, with several stacked line items the retiree pays directly.

The dealer markup is the line item with the widest range. Common bullion coins and bars carry tight spreads. Premium or proof coins marketed as exclusive or limited carry markups that can be several times higher. A clean TRS rollover is undone quickly if the metal is bought at a 25 percent or 35 percent markup over spot.

Check whether your TRS distribution is eligible to roll

Before calling a provider, confirm the TRS payment is actually eligible to roll under federal rules. The screening tool below walks through the eligibility questions and 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.

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: a Houston teacher rolls a 24-month PLSO

Your next step

If a TRS PLSO or refund rollover into a gold IRA looks like the right move, the highest-leverage action is to vet the provider before signing any TRS distribution 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.

When rolling a TRS distribution into a gold IRA is a bad idea

TRS to gold IRA FAQ

Sources

1. Teacher Retirement System of Texas. Partial Lump Sum Option (PLSO). trs.texas.gov/pension-benefits/active-member-resources/plan-retirement/resources/plso. Checked June 2026.
2. Teacher Retirement System of Texas. Refunding Your Member Account. trs.texas.gov/Pages/active_member_refunding_member_account.aspx. Checked June 2026.
3. Teacher Retirement System of Texas. Application for Refund (Form TRS 6). trs.texas.gov. Checked June 2026.
4. Teacher Retirement System of Texas. Refund Rollover Election (Form TRS 6A) and Special Tax Notice Regarding Rollover Options under TRS. trs.texas.gov. Checked June 2026.
5. Internal Revenue Service. Publication 575: Pension and Annuity Income. irs.gov/publications/p575. Checked June 2026.
6. Internal Revenue Service. Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs). irs.gov/publications/p590a. Checked June 2026.
7. Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs). irs.gov/publications/p590b. Checked June 2026.
8. Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions. irs.gov/retirement-plans. Checked June 2026.
9. Internal Revenue Service. Topic No. 413, Rollovers from Retirement Plans. irs.gov/taxtopics/tc413. Checked June 2026.
10. Internal Revenue Service. Topic No. 558, Additional Tax on Early Distributions from Retirement Plans. irs.gov/taxtopics/tc558. Checked June 2026.
11. Internal Revenue Code Section 402(c). Rollovers from qualified plans. uscode.house.gov. Checked June 2026.
12. Internal Revenue Code Section 401(a)(31). Direct rollover option. uscode.house.gov. Checked June 2026.
13. Internal Revenue Code Section 3405. Special rules for pensions, annuities, and certain other deferred income; 20 percent mandatory withholding. uscode.house.gov. Checked June 2026.
14. Internal Revenue Code Section 408(m). Collectibles rule and bullion exception. uscode.house.gov. Checked June 2026.
15. Internal Revenue Code Section 72(t)(2)(A)(v). Separation-from-service exception at age 55. uscode.house.gov. Checked June 2026.
16. United States Tax Court. McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021). Home-storage IRA confirmed as a full distribution.
17. Texas Bullion Depository. IRA Storage Services. texasbulliondepository.gov/ira-storage. Checked June 2026.
18. Office of the Texas Comptroller of Public Accounts. Texas Bullion Depository overview. comptroller.texas.gov. Checked June 2026.
19. Texas Constitution, Article 8, Section 24. Prohibition on a state personal income tax. statutes.capitol.texas.gov. Checked June 2026.
20. Social Security Administration. Windfall Elimination Provision and Government Pension Offset. ssa.gov. Checked June 2026.
21. Public Law 118-273. Social Security Fairness Act (signed January 5, 2025). congress.gov. Checked June 2026.

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