TSP to Gold IRA Rollover Guide (2026)

For hundreds of thousands of federal employees and military service members, the Thrift Savings Plan (TSP) has served as the backbone of their retirement savings. Its low-cost index funds, simple lineup, and automatic payroll contributions make it highly efficient for long-term accumulation. Yet in recent years, many retirees have started asking a different kind of question — not just how to grow their TSP, but how to protect it from inflation, market shocks, and rising global uncertainty. That’s often when the idea of a TSP to Gold IRA rollover enters the conversation.

In talking with former federal workers, a strikingly similar theme emerges: they appreciate the TSP, but they don’t want all of their savings locked into paper assets forever. A portion in physical, IRA-approved gold feels like a logical way to add diversification and long-term stability. This guide explains, in exceptionally clear terms, how a TSP rollover to a Gold IRA works, which rules matter most, and how to complete the process without triggering unnecessary taxes or penalties.

How a TSP to Gold IRA Rollover Works

The TSP is a government-sponsored plan, but when you separate from federal service — or reach certain age milestones — you’re allowed to move your balance into an IRA. By choosing a self-directed Gold IRA instead of a standard brokerage IRA, you gain access to physical precious metals, including IRS-approved coins and bars, rather than being limited to index funds.

If you’re still learning the basics of precious metals accounts, it may be helpful to first read our overview on how a Gold IRA works. Once you understand the structure, rolling funds from the TSP into that framework becomes significantly easier to visualize.

When Are You Allowed to Roll Over a TSP?

Unlike a traditional IRA, the TSP follows federal rules tied to your employment status and age. Understanding these conditions is particularly beneficial before you plan a rollover strategy.

• After Separation from Service: Once you leave federal employment or military service, you can roll over all or part of your TSP balance to a Gold IRA.
• Age-Based In-Service Withdrawals: In many cases, participants aged 59½ or older can initiate a partial rollover while still working, often called an “age-based in-service withdrawal.”
• Required Minimum Distributions (RMDs): After RMDs begin, only the remaining eligible balance can be rolled over. RMD amounts themselves are not rollover-eligible.

Step-by-Step: TSP to Gold IRA Rollover Process

Although the TSP is administered differently from private-sector plans, the rollover process can be highly efficient when guided by an experienced Gold IRA company. Here’s how the process usually unfolds:

Step 1: Open a Self-Directed Gold IRA

Your first step is opening a self-directed IRA with a custodian that specializes in holding physical metals. This account will receive your TSP funds and later hold your gold and silver. The setup is typically completed in one phone call or secure online form.

Step 2: Confirm Your Eligibility with the TSP

Next, you’ll confirm that you qualify for a rollover under TSP rules — either due to separation, an age-based in-service withdrawal, or another eligible distribution type. The TSP website and participant services can clarify your specific eligibility.

Step 3: Request a Direct Rollover

To keep your transfer tax-free, you’ll request a direct rollover from the TSP to your new IRA custodian. With a direct rollover, the funds move directly between institutions; the check is either made out to the new custodian for benefit of (FBO) you, or sent electronically, and you never take personal possession.

Step 4: Fund the Gold IRA

Once the rollover is processed, your new Gold IRA will reflect the incoming balance. At that point, you can work with your chosen Gold IRA company to select IRA-approved metals that align with your risk tolerance and diversification goals.

Step 5: Purchase and Store Approved Metals

Your custodian completes the purchase from an approved dealer and arranges transport to an IRS-approved depository. These secure facilities use highly advanced security systems and insurance coverage, making storage extremely reliable from a safety standpoint.

Direct vs. Indirect Rollovers from the TSP

One of the most important decisions during a TSP rollover is whether to use a direct or indirect method. In practice, almost every investor is better served by the direct path.

Feature	Direct TSP Rollover	Indirect TSP Rollover
Funds Sent To	Directly to new IRA custodian	Sent to you first, then to IRA
Tax Withholding	None	May be subject to mandatory withholding
60-Day Rule	Not applicable	Must redeposit within 60 days
Risk of Penalties	Extremely low	Higher if deadlines are missed
Recommended?	Yes, in almost all cases	Generally not recommended

Why Some TSP Participants Choose a Gold IRA

In conversations with former federal employees, certain motivations appear again and again. While the TSP is highly efficient for accumulation, many feel its limited fund menu doesn’t provide enough flexibility for uncertain economic environments. Adding physical gold inside a separate IRA offers a different type of security — one rooted in tangible, globally recognized assets.

• Inflation Concerns: Gold has historically been used as a store of value during inflationary and currency-weakening periods.
• Diversification: The TSP lineup focuses on stock and bond funds. Physical metals move differently, providing diversification benefits.
• Long-Term Stability: Some retirees prefer to anchor part of their wealth in assets that have outlasted countless economic cycles.
• Control: A self-directed Gold IRA gives you more say over your asset mix than a strictly defined TSP menu.

Key Considerations Before You Roll Over

While a TSP to Gold IRA rollover can be particularly beneficial, it’s not the ideal solution for everyone. It’s worth weighing both structural and personal factors before making the decision.

• Fees: Gold IRAs include custodian and storage costs. These are usually modest but should be understood upfront.
• Risk Tolerance: Metals can fluctuate in the short term, even if they provide long-term balance.
• Time Horizon: Gold is best viewed as a multi-year, preservation-focused holding, not a speculative trade.
• Overall Allocation: Many investors place only a portion of their retirement funds into a Gold IRA, often in the 5–20% range, depending on risk profile.

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