457(b) to Gold IRA: How to Convert a 457(b) Rollover to Gold

• What is a 457(b) & Can It Hold Gold?
• Converting a 457(b) to a Gold IRA: How It Works
• 3 Steps to a Gold 457(b) Rollover
• Costs to Move 457(b) to Gold
• 457(b) vs a Gold IRA

What is a 457(b) & Can It Hold Gold?

A 457(b) is a nonqualified, tax advantaged deferred-compensation retirement plan, available to government employees and some nongovernmental employers in the United States. The employer provides the 457(b) plan, and the employee pays into it on a pretax or after-tax basis. A 457(b) is not able to hold physical gold directly, but you can convert the account to a self-directed IRA so you can invest in gold and maintain tax benefits. Non-governmental 457(b) plans cannot be rolled into a Gold IRA due to IRS restrictions.

Converting a 457(b) to a Gold IRA: How It Works

The process of converting your 457(b) to physical gold involves owning a self-directed IRA. These accounts can legally hold physical gold which is purchased by the 457(b) funds. The 457(b) rollover process can take one to two weeks. Don't forget to consult with your financial advisor before starting the rollover steps.

3 Steps to a Gold 457(b) Rollover

There are three steps in rolling over your 457(b) to a Gold IRA:

1. Open a Self-Directed Gold IRA

First, establish a self-directed IRA so you can rollover 457(b) funds, but make sure to choose a solid Gold IRA company. The Gold SDIRA will be used to hold the precious metals you purchase with your 457(b) account's funds.

2. Rollover 403(b) Funds

Next, start the rollover process of your 457(b)s funds to a Gold IRA. You'll have two options to move your 457(b) to gold: an indirect rollover or direct rollover. A direct rollover is common due its reliability of avoiding penalties and taxes. An indirect rollover requires a 60-day window to reinvest the funds in the Gold IRA account. A gold-backed IRA rollover must follow all rollover rules set by the IRS to avoid penalties or tax penalties.

3. Purchase IRS-Approved Gold & Silver

Finally, once the self-directed Gold IRA is funded with your 457(b), you can now purchase IRA-approved gold, silver, platinum, and palladium. The metals are then stored in an IRS-approved depository with a trusted custodian. You'll be able to include different types of metals including bullion coins and bars.

Costs to Move 457(b) to Gold

The fees you will pay to convert your 457(b) to a Gold IRA depends on the company you chose, purchase amount, and the type of storage. These costs to move 457(b) funds to gold include setup fees, annual maintenance fees, and storage fees. There is however a way to get these fees removed so you can maximize your 457(b) savings as long as you meet the minimum investment requirements of some of the best Gold IRAs. We outline how this works in our checklist.

457(b) vs a Gold IRA

A 457(b) at most is holding mutual funds or annuities greatly tied to the financial markets, managed by plan administrators like other employer-funded retirement plans. By holding gold in a self-directed IRA with 457(b) funds, you can diversify your retirement portfolio beyond just paper assets. This let's you achieve retirement goals with different asset types across an investment portfolio (Your financial advisor can help you plan for what's best). Similar to a 457(b), a 403(b) in physical gold shifts retirement savings from mutual funds and stocks into IRS-approved gold through a self-directed IRA.

Before Rolling Over Your 457(b), Plan Ahead With Gold IRA Planners

Before rolling over your 457(b) funds to a Gold IRA, plan ahead with Gold IRA Planners. We've developed easy-to-read educational resources so you can invest confidently in a Gold IRA, removing any uncertainties. We provide rollover resources beyond just 457(b)s, including TSP accounts among other eligible, making it easier to plan ahead.