TSP to Gold IRA Rollover: A Guide for Federal Employees

Yes, if you are eligible to take money out of the Thrift Savings Plan. The TSP itself only offers its own funds - it has no option to hold physical gold or silver. To own metal in a tax-advantaged account, you move TSP money into a self-directed IRA whose custodian holds IRS-eligible precious metals in an approved depository. That is what people mean by a "gold IRA" (see what is a gold IRA).

Traditional TSP money goes to a traditional IRA; Roth TSP money would go to a Roth IRA. Keeping the two separate preserves their tax treatment.

There are two main windows:

• After separation from federal service - whether you retire, resign or otherwise leave, you can generally move your TSP balance to an IRA.
• In-service withdrawal at age 59½ - if you are still working for the government, you can take an age-based withdrawal once you reach 59½ and roll it into an IRA.

The TSP's own forms and rules decide the details, such as how many withdrawals you can take and how they are processed. Check the current rules on the TSP website or with the TSP directly before you start - they change from time to time, and the gold dealer is not the authority on them.

• Direct rollover (transfer). The TSP sends the money straight to your new IRA custodian. No tax is due and nothing is withheld. This is the method most people use.
• Indirect rollover. The TSP pays the money to you, withholding 20% for federal tax. You have 60 days to deposit the full amount - including the withheld 20%, from your own savings - into the IRA. Anything not redeposited in time is generally treated as a taxable distribution, and penalties can apply if you are under 59½.

Unless you have a specific reason, the direct route is simpler and safer. Our 401(k) rollover guide walks through a worked example of how the 20% withholding plays out.

1. Confirm eligibility - separated from service, or age 59½ or older for an in-service withdrawal.
2. Compare gold IRA companies in writing. Ask for the setup fee, yearly custodian and storage fees, the markup over spot on the exact products, and buyback terms. See our gold IRA company rankings.
3. Open a self-directed IRA with the custodian the dealer works with. Make sure you get the custodian's account agreement and fee schedule.
4. Request the withdrawal from the TSP and choose to transfer it to the new IRA, giving the custodian's details. The gold IRA company or custodian can often help with the form, but you should review and sign it yourself.
5. Wait for the funds to land with the custodian.
6. Buy IRA-eligible metal - for example American Gold Eagles or Buffalos, Canadian Maple Leafs or accredited-refiner bars - and get an itemized invoice. See what qualifies.
7. Check your first statement to confirm the products, quantities and storage type match your order.

• The TSP is known for very low costs. A gold IRA adds setup fees, yearly custodian and storage fees (often a flat $175-$300 a year) and a markup on the metal. See gold IRA fees explained.
• You do not have to move everything. Many people move only part of their balance, if their withdrawal options allow it. Read how much gold in a retirement portfolio.
• Gold pays no income and its price can drop - it closed at a record of about $5,318 an ounce in January 2026 and was around $4,150-$4,200 by mid-October 2026.
• Required minimum distributions still apply to traditional IRAs from age 73. See gold IRA taxes and RMDs.

Federal retirees are a known target. In 2023 the CFTC, SEC and the states of California and Hawaii sued Red Rock Secured, alleging it took about $61.8 million from roughly 950 customers - money drawn from IRAs, 401(k)s and TSPs. Regulators said customers paid average markups of 100-130% while being told markups were 4-29%.

Common warning signs include pressure to act today, pitches that the government is about to "seize" your TSP, steering you toward "premium" or proof coins instead of standard bullion, and any claim that a company is "IRS-approved" (the IRS does not approve dealers). See gold IRA scams and red flags.

Get written quotes from at least two or three companies, compare the total cost with the gold IRA fee calculator, and consider speaking with a fee-only adviser who does not sell metals. When you are ready, compare options on our best gold IRA companies page or read our reviews of Augusta Precious Metals and American Hartford Gold, or compare them in Augusta vs American Hartford Gold.

This article is general information, not financial, tax or legal advice. Fees, minimums and promotions change often and vary by custodian and account size - confirm current terms in writing with the company and your custodian before you invest.