STRS Ohio to Gold IRA Rollover: Which Plans Are Eligible

STRS Ohio administers retirement benefits for more than 180,000 active public school teachers across the state. The system offers three distinct plan types, and which plan you are in determines what, if anything, you can roll over to a self-directed gold IRA. Getting this wrong can trigger unnecessary taxes, penalties, and permanent loss of retirement income.

STRS Ohio’s Three Retirement Plans

The State Teachers Retirement System of Ohio, known as STRS Ohio, provides retirement coverage for public school teachers and certain other educators employed by Ohio school districts, community schools, and other qualifying entities. STRS Ohio offers three plan options, each with a different structure for contributions, benefits, and portability. Members generally select a plan when they first become eligible and cannot change plans after the election window closes.

Understanding which plan you are in is the foundation for any rollover conversation. The IRS treats each plan type differently for distribution and rollover purposes, and STRS Ohio’s own rules govern what can be distributed before or at retirement.

Rollover Eligibility by Plan Type

Under IRS rules, a retirement plan distribution is an “eligible rollover distribution” if it is not a required minimum distribution, a substantially equal periodic payment, or a hardship withdrawal, among other exclusions. Lump-sum account balances and certain other single-sum payments from qualified plans and 403(b) arrangements generally qualify. Monthly annuity payments do not.

The table below summarizes how these rules apply to STRS Ohio’s three plans. Verify current plan specifics at strsoh.org or by contacting STRS Ohio member services before making any distribution decision.

DB Plan: The Contribution Refund Option

STRS Ohio DB plan members who leave qualifying employment before retirement may request a refund of their accumulated member contributions. This refund is reported on IRS Form 1099-R and qualifies as an eligible rollover distribution under IRC Section 402(c). You can move it to a traditional IRA, including a self-directed IRA holding IRS-approved precious metals, through a direct rollover to avoid the mandatory 20 percent federal income tax withholding that applies when the check is paid directly to you.

Before requesting a DB refund, there is a critical point to understand.

The refund amount available to a DB member is limited to the accumulated member contributions and any credited interest. Employer contributions made on behalf of the member fund the DB pension obligation and are not returned to individuals who withdraw before retirement. This means the rollable amount is typically smaller than the total contributions paid into the system on your behalf over your career.

Members who are still within the vesting period and have not earned a right to a future monthly benefit may face a different calculus. If the projected monthly pension benefit is small and decades away, the rollover option can make sense. A licensed financial advisor with experience in public pension systems can help model both scenarios using your specific STRS Ohio account statement figures.

DC Plan: Full Account Balance Rollover

The STRS Ohio Defined Contribution plan works like a 401(k) or 403(b) arrangement: member contributions and employer contributions are deposited into individual accounts that members invest in a menu of available fund options. The account grows or falls based on investment returns. There is no formula-based pension in the DC plan.

When a DC plan member separates from qualifying employment, the full account balance is an eligible rollover distribution. This includes both the member’s own contributions and any vested employer contributions. STRS Ohio provides DC plan members with a distribution election form. You can elect a direct rollover to a receiving traditional IRA custodian, which means STRS Ohio sends the funds directly to the IRA custodian on your behalf rather than issuing a check to you.

The DC plan is generally the cleanest rollover path for STRS Ohio members who want to move funds to a self-directed gold IRA. The full account balance, employer contributions included, is portable once vested. There is no pension tradeoff because there was never a formula-based pension in the DC plan to begin with.

Combined Plan: The DC Component

The STRS Ohio Combined Plan splits member contributions between a DB component and a DC component. The result is a smaller monthly pension at retirement than the pure DB plan would produce, combined with a smaller DC account balance than the pure DC plan would accumulate.

For rollover purposes, only the DC account balance is portable. When a Combined plan member separates from employment, the DC component is eligible for a direct rollover to a traditional IRA using the same process as a DC plan member. The DB component of the Combined plan pays a reduced monthly pension at retirement based on the same service-and-salary formula used by the DB plan, but applied to the DB portion of contributions only.

Combined plan members considering a rollover should obtain a current account statement from STRS Ohio that separately states the DC account balance. This is the amount that can move to a gold IRA. The DB component that will produce a future monthly benefit cannot be rolled out as a lump sum during working years or at normal retirement.

403(b) Accounts: A Separate Rollover Path

Many Ohio public school teachers contribute to a supplemental 403(b) tax-deferred annuity through their employing school district in addition to their STRS Ohio plan. These 403(b) accounts are entirely separate from the STRS Ohio system and are administered by third-party providers selected by the school district.

Under IRC Section 402(c), distributions from a 403(b) arrangement qualify as eligible rollover distributions when you separate from employment, reach age 59½, or meet another qualifying event. The full account balance can be moved by direct rollover to a traditional self-directed IRA.

If you are an STRS Ohio DB plan member considering a rollover, your district 403(b) may represent the most accessible source of rollover funds. Unlike the STRS Ohio DB refund, rolling over a 403(b) does not affect your STRS Ohio pension in any way. The two accounts are completely independent.

Contact your school district’s HR department or benefits coordinator to identify the 403(b) provider, confirm your current balance, and request rollover paperwork. Processing times vary by provider.

Step-by-Step: How the Rollover Works

The mechanics of moving funds from STRS Ohio to a self-directed gold IRA follow the same general pattern used for any qualified plan-to-IRA rollover, with a few STRS-specific steps at the beginning.

• Step 1: Confirm your rollover-eligible balance with STRS Ohio

  Log in to your STRS Ohio member account at strsoh.org or call STRS Ohio member services to confirm your plan type, current balance, and the distribution options available to you. Request an account statement that itemizes member contributions, employer contributions (if applicable), and any accrued interest. This is the figure you will use when sizing your rollover and discussing it with a custodian.

• Step 2: Open a self-directed IRA with an IRS-approved custodian

  A self-directed IRA holding physical precious metals must be held by an IRS-approved trustee. Standard brokerage IRAs do not permit physical metal holdings. You will need to open an account with a custodian that specifically supports self-directed IRAs with precious metals custody. The custodian handles the legal holding of the assets; a separate IRS-approved depository stores the physical metals. Confirm that the custodian accepts incoming rollovers from public pension systems before completing any paperwork.

• Step 3: Obtain the receiving custodian’s direct rollover instructions

  Your new self-directed IRA custodian will provide you with a letter of acceptance, an account number, and wire or check delivery instructions formatted for an incoming direct rollover. You will provide these details to STRS Ohio when you complete the distribution election form. The check or wire must be made payable to the new IRA custodian for the benefit of (FBO) your account, not to you personally.

• Step 4: Complete the STRS Ohio distribution request

  STRS Ohio requires a completed distribution or refund application to initiate any payment. The form will ask you to elect direct rollover and provide the receiving custodian’s information. Submit the form according to STRS Ohio’s current instructions, which may include notarization or medallion signature guarantee requirements. Contact STRS Ohio member services at strsoh.org to obtain the current version of the form and confirm submission requirements.

• Step 5: Wait for STRS Ohio to process and release the funds

  STRS Ohio will process your distribution request and send the funds directly to your new IRA custodian by check or wire. Processing timelines vary. Contact STRS Ohio directly for current estimates. You can monitor progress through your STRS Ohio online account. Do not purchase metals until the receiving custodian confirms the funds have settled in your new IRA account.

• Step 6: Direct your IRA custodian to purchase IRS-approved metals

  Once funds are settled in your self-directed IRA, you instruct the custodian to purchase IRS-approved precious metals through a dealer of your choice. The custodian executes the purchase on behalf of the IRA. You do not take personal possession of the metals. The metals are shipped directly to an IRS-approved depository where they are held in your IRA’s name. The custodian sends you a confirmation statement reflecting the metals held in your account.

IRS Rules for Precious Metals in a Self-Directed IRA

Not all gold or silver products qualify for IRA inclusion. IRC Section 408(m) establishes specific fineness requirements that must be met for any metal to be held in a tax-advantaged IRA account. Purchasing a non-qualifying metal inside an IRA is treated as a prohibited transaction or a deemed distribution, with immediate tax consequences.

Physical possession of IRA metals is prohibited by IRC Section 408(m)(3). Metals held in a self-directed IRA must remain at an IRS-approved depository at all times. Taking personal delivery of the metals is treated as a distribution, triggering income tax on the fair market value and a 10 percent early distribution penalty if you are under age 59½.

For the complete list of approved metals, coins, and refiners, see IRS Publication 590-B and confirm eligibility with your custodian before placing any purchase order. Tax rules in this area can be complex. Consult your tax advisor for your specific situation.

Who Is Not a Good Fit for a Gold IRA After STRS Ohio

A gold IRA rollover is not the right move for every STRS Ohio member. Understanding who it does not fit is as important as understanding who it may serve.

DB plan members close to retirement or near vesting. If you are within a few years of meeting STRS Ohio’s vesting requirements or your pension benefit is substantial, forfeiting that benefit in exchange for a rollable contribution refund is a serious tradeoff. A guaranteed lifetime monthly income stream has a present value that is difficult to replicate in a self-directed account, particularly for members with significant years of service. A fee-only financial advisor can model the two scenarios side by side using your actual STRS Ohio benefit projections.

Members with small contribution balances. Self-directed IRA custodians and metal storage providers charge annual fees. On a small account balance, those fees represent a disproportionate percentage of the account’s value each year. The economics improve as account size increases. Industry-reported minimum investments for gold IRA companies typically range from $10,000 to $50,000; verify current minimums directly with any company you are evaluating.

Members who may need liquidity within five years. Physical precious metals inside an IRA are not liquid in the same way as cash or publicly traded securities. Selling metals, paying custodian and dealer fees, and distributing cash takes time. If you anticipate needing access to this money within a short horizon, a gold IRA is not an appropriate vehicle for those funds.

Members under 59½ with no qualifying exception. Distributions taken before age 59½ that do not meet an exception are subject to a 10 percent early distribution penalty in addition to ordinary income tax. If you are considering a rollover primarily to access the cash rather than to continue the tax-deferred status, understand the full cost of that decision before proceeding. We are not financial advisors. Consult a licensed advisor before making retirement decisions.

For Ohio public employees covered by OPERS rather than STRS Ohio, see our companion guide: OPERS to Gold IRA Rollover for Ohio Public Employees. For a broader look at Ohio’s tax treatment of IRA distributions, see our Gold IRA Guide for Ohio Residents.

Frequently Asked Questions