Investing in Gold with a Money Purchase Plan (MPP)

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Are you enrolled in a Money Purchase Plan through your employer and wondering whether you can add gold to diversify your retirement savings? You’re not alone. MPPs are less common than 401(k)s, so people often don’t know what they can and cannot do inside the plan.

In this guide, I’ll break down what an MPP is, how rollovers usually work, what “gold exposure” typically means inside an employer plan, and the most common path people take if they want physical gold or silver bullion in a retirement account.

Free Guide: Turning Retirement Savings Into Physical Gold (2026)

If your real goal is bullion (not just ETFs), this free guide explains eligible metals, storage rules, and the questions to ask before you roll over any plan money.

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What is a Money Purchase Plan?

A Money Purchase Plan (often called a money purchase pension plan) is an employer-sponsored retirement plan where the employer commits to contributing a fixed percentage of eligible compensation each year. That’s the big difference.

With a profit sharing plan, contributions can vary year to year depending on the employer’s decision and profitability. With an MPP, the contribution formula is typically baked into the plan and is meant to be more consistent.

Like a 401(k) plan, an MPP is generally a defined contribution plan. Your eventual retirement value depends on contributions plus investment performance, minus fees.

Tax treatment (in plain English)

• Contributions: usually made pre-tax (by the employer), which can reduce current taxable income at the plan level.
• Growth: typically tax-deferred while the money remains in the plan.
• Withdrawals: generally taxed as ordinary income in retirement, depending on the distribution type and your situation.

Heads-up: MPPs can have higher administrative costs than simpler plans. If your account is small, fees can matter more than most people realize.

Can a Money Purchase Plan invest in physical gold or silver bullion?

In most workplace MPPs, the answer is effectively no because your investment menu is limited to the options offered by the plan provider (often mutual funds, target-date funds, and sometimes ETFs).

So what can you usually do?

• Paper gold exposure (when offered): gold ETFs, precious-metals funds, or mining stocks/funds.
• Physical bullion: typically requires a different structure (most commonly a rollover into a self-directed setup built for metals custody and storage).

If you want the “real metal” route, start here: self-directed IRA investing.

👍 Pros of an MPP (and why some people like them)

• Predictable employer contributions: the formula is usually consistent year over year.
• Tax-deferred growth: like most qualified retirement plans.
• Hands-off simplicity: many plans are set up with simple investment menus.

👎 Cons and limitations (especially for gold investors)

• Limited investment options: you can only choose from what the plan offers, which often excludes physical bullion.
• Rollover restrictions may apply: some plans do not allow in-service distributions while you are still employed.
• Fees can be meaningful: admin and fund fees can quietly eat into returns over time.

Money Purchase Plan rollover rules and limitations

From the IRS perspective, an MPP is a qualified plan. That means eligible distributions can often be rolled over to another employer plan or to an IRA. The practical issue is usually timing and eligibility:

• Are you allowed to take a distribution? Some plans allow rollovers only after separation from service (leaving the employer).
• Is it an “eligible rollover distribution”? Not every payout qualifies.
• Direct vs indirect rollover: direct rollovers are usually safer because the money does not pass through your hands.

For the official rollover rules and examples, see the IRS page on rollovers of retirement plan and IRA distributions.

If you’re trying to move retirement funds into a structure that supports physical metals, our step-by-step explainer is here: Gold IRA rollover guide.

Money Purchase Plan vs. other retirement accounts (gold options compared)

This table replaces the old shortcode and shows what’s usually possible in the real world.

Note: “Maybe” usually means it depends on the plan provider’s investment menu. If your goal is physical bullion, you typically need a structure built for metals custody, storage, and transaction processing.

What types of “gold exposure” can you get in an MPP?

If your plan offers them, “paper gold” options can include:

• Gold ETFs (spot-tracking funds)
• Precious-metals mutual funds
• Mining stocks or mining sector ETFs

Paper gold can be convenient, but it behaves differently than owning bullion. If you want the full breakdown, see: physical gold vs. paper gold.

Investing in physical gold vs. “paper gold” (why they are not the same)

Paper gold is a security. It can be traded quickly, which is helpful, but it also introduces extra risks you do not get with bullion, such as:

• Business risk: a mining stock can underperform even if gold rises.
• Regulatory risk: mining and exploration are heavily regulated.
• Management risk: leadership decisions can harm performance.
• Market correlation risk: some “gold” equities still drop during broad equity selloffs.

Physical bullion is different because you own a real asset (held under proper custody rules in retirement accounts). If you want the basics on what typically qualifies, see: IRA-approved gold and silver (eligible coins and bars).

How people typically get physical bullion exposure from an MPP

If you want physical gold or silver (not paper gold), here’s the usual path:

1. Check your plan documents to see whether in-service distributions are allowed (many are not).
2. If eligible, do a direct rollover so the funds move trustee-to-trustee (lower chance of withholding or timing issues).
3. Open a metals-friendly structure where a custodian handles purchases and an approved depository handles storage.

To understand who does what in a metals IRA, this is helpful: IRA custodians explained. And for the storage side: IRS-approved depositories and storage options.

Also, do not ignore fees. If you want to know what you are likely paying (and what to ask about), read: gold IRA costs and fees.

Dedicating 5–20% of your retirement portfolio to precious metals (a realistic take)

A modest allocation to precious metals is a popular diversification approach for some retirement savers, but it is not one-size-fits-all. Your ideal percentage depends on your time horizon, risk tolerance, and what else you already hold.

If you are close to retirement, you may care more about preserving purchasing power and smoothing volatility. If you are decades away, you may prefer a smaller allocation. If you want to see how gold has been behaving recently, our live tracker is here: gold price.

Money Purchase Plan FAQ

Before you roll over your MPP, grab the checklist

This free GoldenCrest guide is built for retirement savers who want physical metals exposure and want to avoid expensive beginner mistakes.

Disclosure: If you request the guide through our link, we may earn a commission at no extra cost to you.

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FTC Disclosure: We are an independent blog providing educational information for retirement account owners exploring alternative assets like precious metals. Our content does not constitute financial advice. Please speak with a financial advisor or tax professional before making investment decisions.