Investing in Gold with a 457(b) Plan (2026 Update)

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If you have a 457(b) through work (common for government employees, school districts, hospitals, and some nonprofits), you’ve probably asked the same question most retirement savers ask eventually: “How do I diversify beyond stocks and bonds?”

Gold and silver are popular “real asset” diversifiers, but here’s the key thing to know up front:

• A 457(b) plan almost never lets you buy physical gold or silver directly.
• Some 457(b)s may offer “paper gold” (gold ETFs, mining funds, commodity funds), but availability depends on your plan menu.
• If you want IRS-approved physical bullion inside a retirement account, that generally requires a rollover into a self-directed IRA (and rollovers are mainly an option for governmental 457(b)s).

Thinking about moving a 457(b) into physical gold?
Get a free, no-pressure gold IRA guide from GoldenCrest Metals and learn how a rollover works, what metals qualify, and what to watch out for.

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What Is a 457(b) Plan, Really?

A 457(b) is a tax-advantaged, employer-sponsored retirement plan governed by Section 457 of the Internal Revenue Code. It’s a defined contribution plan, meaning you (and sometimes your employer) contribute money, choose investments from a limited menu, and the account grows tax-deferred (or Roth, if your plan offers it).

Where 457(b)s get confusing is that there are effectively two different versions:

• Governmental 457(b): offered by federal/state/local governments and many public agencies.
• Non-governmental 457(b): offered by certain tax-exempt organizations (often limited to management/highly compensated employees). These plans commonly have stricter distribution and rollover rules.

Why this matters: your ability to roll money into an IRA (including a precious metals IRA) typically hinges on whether your 457(b) is governmental.

457(b) Contribution Limits and Catch-Up Rules (2026)

Most people skip this section, but it’s one of the most useful parts of a 457(b) plan because the limits change over time and can impact your rollover and diversification planning.

• 2026 elective deferral limit: You can generally contribute up to $24,500 to a 457(b) plan in 2026 (this is the standard employee salary deferral limit).
• Age 50+ catch-up (2026): If you’re age 50 or older, you can typically contribute an additional $8,000 in 2026 (if your plan allows catch-up contributions).
• Age 60–63 higher catch-up (2026): Many plans allow an even higher catch-up for participants ages 60 through 63, up to $11,250 in 2026 (rules and eligibility depend on your plan).
• Special 457(b) catch-up (final 3 years before “normal retirement age”): Some 457(b) plans also allow a special catch-up during the final three years before your plan’s defined “normal retirement age.” This is very plan-specific and you generally must choose either the special catch-up or the age-based catch-up for that year (not both).

Quick tip: Always confirm your exact catch-up eligibility with your plan administrator, since governmental and non-governmental 457(b) plans can differ, and employers can define “normal retirement age” differently inside the plan document.

When Can You Roll Over a 457(b)?

Even if rollovers are allowed in theory, your plan still needs a “distributable event.” In plain English, most 457(b) plans won’t let you move money until something triggers eligibility, such as:

• separation from service (leaving the employer),
• reaching a specified age under the plan,
• an approved hardship/unforeseeable emergency (rules are strict), or
• other plan-specific events.

Pro tip: before you do anything, confirm whether you have a governmental or non-governmental 457(b), and ask your administrator: “Is a direct rollover available, and where can it go?”

457(b) Rollover Rules (Quick and Practical)

• Governmental 457(b): may be eligible to roll to an IRA, 401(k), 403(b), or another governmental 457(b) (depending on what the receiving plan accepts).
• Non-governmental 457(b): rollovers are much more limited and commonly restricted to another eligible non-governmental 457(b) plan (not a personal IRA). Always verify with your plan administrator.

If you do have rollover eligibility, a direct rollover is usually the safest route because the funds move institution-to-institution and you avoid avoidable withholding mistakes.

For rollover basics in plain English, see our main rollover guide.

457(b) vs. 401(k) vs. 403(b) vs. IRA (Quick Comparison)

This table helps you compare 457(b)s with similar retirement accounts and whether gold exposure is sometimes available as funds/ETFs.

(“Maybe” means availability depends on what your plan provider actually offers.)

Can You Buy Physical Gold in a 457(b)?

Almost always: no. A typical 457(b) menu is limited to mainstream options like mutual funds, target-date funds, annuity products, and sometimes brokerage windows.

What you might be able to buy (depending on your plan) is paper gold, such as:

• gold ETFs (example: GLD/IAU-type funds, if your plan offers them),
• precious-metals or natural-resources mutual funds,
• mining-stock funds, or
• commodity-focused funds.

But physical bullion (bars/coins stored at a depository) is generally not a 457(b) feature. That’s more of a self-directed IRA feature, because the IRA structure supports specialized custody and storage rules.

Physical Gold vs. “Paper Gold” (What You’re Actually Owning)

“Paper gold” is convenient and easy to trade, but it’s not the same thing as owning bullion. Here’s the difference:

• Paper gold: you own shares of a fund or a mining company. Performance can be influenced by management execution, costs, debt, politics, and general stock-market sentiment.
• Physical gold: you own specific bullion products that are held in insured, audited storage (when held inside a retirement account, that storage must typically be a qualified depository).

If you want a deeper breakdown, see our detailed guide on physical gold vs. paper gold.

How a Governmental 457(b) Can End Up in Physical Gold

If (and only if) your 457(b) is eligible for a rollover to an IRA, the usual path looks like this:

1. Confirm rollover eligibility with your plan administrator (and whether you must wait until you separate from service).
2. Open a self-directed IRA with an experienced IRA custodian that supports precious metals.
3. Request a direct rollover from your 457(b) to the new IRA (avoid indirect rollovers if you can).
4. Select IRS-approved metals (the custodian/dealer will help you stay within purity and product rules).
5. Store the metals properly through an approved depository (home storage is typically not permitted for IRA metals).

If you’re rolling over a governmental 457(b)…
GoldenCrest’s free guide walks through the paperwork, common rollover pitfalls, and how physical metals are held inside an IRA.

Get the FREE Gold IRA Guide

Disclosure: we may earn a commission if you request the guide through our link.

If you want to compare providers before you start, our rankings of the best gold IRA companies can help you narrow it down.

How Much Gold Is “Reasonable” in a Retirement Portfolio?

There’s no single perfect number, but many investors think in ranges like 5% to 20% depending on:

• how close they are to retirement,
• their comfort with market volatility,
• whether they already own real assets (real estate, commodities, etc.), and
• how diversified their stock/bond exposure already is.

A simple approach is to pick an allocation you can stick with, then rebalance occasionally instead of chasing headlines.

Frequently Asked Questions (457(b) Plans and Gold)

Next step (if you’re eligible to roll over):
Learn the exact rollover workflow and what “IRA-approved gold” means in practice.

Request the FREE Gold IRA Guide

Disclosure: we may earn a commission if you request the guide through our link.

Important: This article is for educational purposes only and is not financial, tax, or legal advice. 457(b) rollover eligibility depends on plan type and plan rules, so verify details with your administrator and a qualified professional.