Can I Buy Gold With a 403b?

Gold investing within your retirement account can be an excellent way to diversify and hedge against inflation, though before making the leap it’s essential to understand what regulations the IRS allows versus doesn’t permit.

Physical gold coins, bars or collectibles are not permitted in any IRA account – including 403b plans.

What is a 403b?

A 403b retirement account is designed for employees working for certain employers such as non-profits, government bodies and some higher education institutions. Like its 401(k) counterpart, this plan allows participants to save pre-tax dollars into an investment account that will only become subject to taxes when withdrawing your distribution after retirement.

Traditional 403b plans require that you take mandatory distributions upon reaching a specific age (typically 70.5 for those retiring post-2024), whereas Roth 403b plans do not require distributions until termination of your employer sponsoring the plan.

Rollover to Gold IRA

One way to safeguard your retirement savings is to convert your 403b into a Gold IRA. Before doing this, however, it’s essential that you understand the IRS guidelines governing 403b-to-Gold IRA rollovers; this will enable you to make informed decisions regarding where best to invest your retirement funds.

Similar to other types of IRA accounts, 403(b) plans don’t impose contribution caps and thus you may transfer all or part of your current balance into your new Gold IRA without exceeding any annual IRS limitations on all IRA accounts.

If you are under 59.5 at the time of making the rollover, taxes and penalties could apply; to avoid them altogether, request a direct transfer from your retirement account custodian and use those funds within 60 days to purchase precious metals in your new Gold IRA.

Your Gold IRA custodian should be trustworthy and offer self-directed investments such as gold and silver investments. Once selected, ensure your chosen custodian provides secure storage facilities to safeguard these precious metals.

Be sure to ask your custodian whether they offer direct-to-trustee transfers from your old retirement account. This step is crucial in making sure the rollover can occur without delays or complications.

Your precious metals should be safely and securely stored, but the custodian that you select should also provide an accessible pricing structure that won’t catch you off guard with unexpected fees or expenses down the line.

Once you’ve chosen a custodian, the next step should be contacting your 403b plan administrator and requesting a distribution. After doing this, open a Gold IRA with your custodian and deposit the distributed funds; later use this account to purchase and store IRS-approved precious metals.

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