Quick Answer
Yes. Federal employees and military members can roll a Thrift Savings Plan (TSP) account into a Gold IRA, either after separating from service, or after reaching age 59½ while still employed.
A direct rollover from traditional TSP to a traditional Gold IRA triggers no immediate taxes and no early withdrawal penalty. The process takes 2-4 weeks. The honest tradeoff: TSP funds carry expense ratios around 0.040%/year, while Gold IRAs carry fixed annual fees for custodian and storage services. Both deserve a place in your evaluation.
The Thrift Savings Plan covers roughly 7 million federal employees and military members, making it one of the largest defined contribution retirement programs in the country. Its index funds carry net administrative expense ratios around 0.040% per year, well below what most private-sector 401(k) participants pay. That cost efficiency is real, and it deserves honest consideration in any comparison.
Federal employees approaching retirement sometimes want exposure to physical gold outside the equity and bond markets that TSP funds track. A Gold IRA is a self-directed IRA (SDIRA) that holds IRS-approved precious metals at an approved depository. It is a legal, IRS-recognized retirement account structure. Rolling a TSP into one is an option, not a universal recommendation. Whether it fits depends on your account size, timeline, fee tolerance, and goals. Consult a licensed financial advisor before acting on anything in this guide.
Who Qualifies: TSP Rollover Eligibility Rules
Two situations allow a TSP account holder to initiate a rollover to an IRA:
Separation from Federal Service (Any Age)
The most common path. When a federal civilian employee, military member, or other federal worker leaves their position, by retirement, resignation, or end of service, the full TSP balance becomes eligible for rollover. There is no minimum age requirement for this route. A 40-year-old federal employee who resigns can roll their TSP to an IRA immediately after separation is processed by TSP.
You must wait until the separation is fully recorded in the TSP system before a withdrawal request will be accepted. This typically takes a few pay periods after your final day of federal employment. Log into My Account at tsp.gov to confirm your account status before proceeding.
Age 59½ In-Service Withdrawal (Still Employed)
Active federal employees who have reached age 59½ can request an age-based in-service withdrawal from TSP while still on the federal payroll. Under IRS rollover rules for government plans, a qualifying distribution from a government-sponsored retirement plan can be rolled directly into a traditional IRA.
Who Does Not Qualify
- Active federal employees under age 59½ with no qualifying separation event
- Participants with an outstanding TSP loan, the unpaid loan balance is treated as a taxable distribution at separation unless repaid first
- Beneficiary participants (survivor withdrawals follow separate TSP rules, confirm with TSP directly)
How a TSP-to-Gold IRA Rollover Works: Step by Step
The process follows the same mechanics as any employer plan-to-IRA rollover under IRS Publication 590-A. A direct rollover, where TSP sends funds directly to the receiving custodian, is the recommended method. No tax is withheld, the 60-day clock does not apply, and you never take personal possession of the funds.
- Open a self-directed IRA with a gold IRA company. The company connects you with an IRS-approved SDIRA custodian. Account opening takes 1-3 business days. You will need the custodian’s full legal name, mailing address, and new account number for the next step.
- Confirm your TSP eligibility. Log into My Account at tsp.gov or call 1-877-968-3778. Verify that your separation is recorded (for post-service rollovers) or that your age-59½ eligibility is confirmed (for in-service).
- Submit your TSP withdrawal request. Navigate to “Withdrawal Requests” in your TSP online account. Select direct rollover to an IRA. Enter the receiving custodian’s information. Specify whether you are rolling traditional TSP funds, Roth TSP funds, or both (they route separately).
- TSP processes and issues the transfer. TSP sends a check made payable to the receiving custodian, for the benefit of (FBO) your name. Processing runs roughly 7-10 business days after request approval. You will receive confirmation via email or mail.
- Custodian credits your Gold IRA. The receiving custodian deposits the funds. No federal tax withholding occurs on a properly executed direct rollover. Your new account is now funded.
- Select and purchase IRS-approved precious metals. Work with the gold IRA company’s metals specialist to choose qualifying products. Gold must meet IRS fineness requirements per IRS Publication 590-B. The custodian arranges delivery to an IRS-approved depository.
End-to-end: 2-4 weeks from account opening to metals in the depository, absent complications. The gold IRA company’s rollover team typically coordinates steps 3 and 4 with you, that guidance is a standard part of their service, not a premium add-on.
TSP-Specific Paperwork: The TSP-99 and the Online System
TSP migrated to a new record-keeping system in 2022, operated by Accenture Federal Services. Most withdrawal requests are now handled online through My Account at tsp.gov. Paper forms have been largely replaced by digital submission for the majority of participants.
For separated participants and certain beneficiary participants, the relevant process corresponds to what was historically documented as the TSP-99 (Withdrawal Request for Separated and Beneficiary Participants). Whether TSP requires online-only submission or accepts a paper supplement depends on your account status and the specific circumstances of your separation. Some participants whose accounts did not migrate cleanly to the new system may still encounter paper-based steps.
Information You Will Need Before Initiating
- Your TSP account number
- Receiving custodian’s full legal name and mailing address
- Your new IRA account number (provided by the gold IRA company after account opening)
- Whether you want to roll traditional TSP funds, Roth TSP funds, or both
- The amount (full balance or partial, separated participants can choose either)
Traditional and Roth TSP Route Separately
If your TSP account contains both traditional (pre-tax) and Roth contributions, they must go to the same corresponding IRA type. Traditional TSP funds roll to a traditional IRA; Roth TSP funds roll to a Roth IRA. You cannot merge them into one account type on arrival. Most established gold IRA companies can open both a traditional SDIRA and a Roth SDIRA for a single participant if you need both, confirm this capability before choosing a company.
Tax Implications of a TSP-to-Gold IRA Rollover
Tax treatment depends entirely on which type of TSP funds you roll and which type of IRA receives them. The table below covers the four main scenarios. Consult your tax advisor before initiating any rollover, state and federal tax treatment varies based on your income, state of residence, and account configuration. Goldiew is not a financial or tax advisor.
| From | To | Tax Event? | Key Notes |
|---|---|---|---|
| Traditional TSP | Traditional Gold IRA | None (direct rollover) | Pre-tax to pre-tax. Taxes deferred until you take distributions. Standard recommended path. |
| Roth TSP | Roth Gold IRA | None | After-tax to after-tax. Qualified distributions in retirement are tax-free. Roth 5-year clock may apply. |
| Traditional TSP | Roth Gold IRA | Taxable, ordinary income | The full converted amount is added to your gross income in the conversion year. No 10% penalty, but the income tax bill can be significant. Talk to your CPA before choosing this path. |
| Any TSP (indirect rollover) | Any IRA | Risk: 20% withholding | If the check comes to you instead of the custodian, TSP withholds 20%. You have 60 days to replace the full pre-withholding amount or the withheld portion becomes a taxable distribution (plus a possible 10% early withdrawal penalty under 59½). Avoid indirect rollovers entirely. |
The Honest Cost Tradeoff: TSP’s Expense Ratios vs. Gold IRA Fees
TSP is among the lowest-cost retirement vehicles available to any American worker. Its five core funds, the C Fund (tracks the S&P 500), S Fund (small-cap US stocks), I Fund (international stocks), F Fund (US bond index), and G Fund (government securities), carry net administrative expense ratios around 0.040% per year as of the most recent TSP annual report. On a $100,000 account, that works out to roughly $40 per year in fund-level costs.
Gold IRAs use a different model: fixed annual fees rather than percentage-based expense ratios.
TSP Cost Model
- Net administrative expense: ~0.040%/year
- $100k account: ~$40/year in fund costs
- $250k account: ~$100/year
- $500k account: ~$200/year
- No setup fee, no custodian fee, no storage fee
- Cost scales proportionally with balance
Typical Gold IRA Cost Model
- Annual custodian fee: $75-$250/year
- Annual storage fee: $100-$300/year (segregated storage costs more)
- Account setup: $0-$200 (varies by company)
- Estimated annual ongoing: $175-$550/year
- Cost is fixed, not percentage-based
- Larger balances pay less as a percentage
On a $100,000 balance, the Gold IRA costs roughly 4-14x more per year in dollar terms. On a $500,000 balance, the same fixed annual fees represent 0.035%-0.110% of the balance, much closer to TSP’s ratio. The fixed-fee structure of Gold IRAs is proportionally more favorable for larger accounts.
This is not an argument against Gold IRAs. Physical gold in an SDIRA offers something TSP’s index funds do not: direct ownership of a tangible commodity inside an IRA-protected account. Whether that tradeoff works for your retirement plan is a conversation for a licensed financial advisor, not a gold dealer or a website.
Past performance is not a guarantee of future results. Neither TSP fund returns nor gold prices can be reliably predicted. This guide does not recommend any specific allocation percentage or suggest that gold will outperform, underperform, or otherwise move in any direction relative to other asset classes.
Gold IRA Companies That Handle TSP Rollovers
Most established gold IRA companies accept TSP rollovers. The mechanics are functionally identical to rolling a 401(k), the company opens your SDIRA, connects you with an IRS-approved custodian, and their rollover team coordinates with TSP on your behalf. Three companies with active Goldiew user reviews and publicly verified credentials currently accept TSP rollovers:
Augusta Precious Metals
Founded 2012 · Beverly Hills, CA · BBB A+ with zero complaints · Money Magazine Best Overall Gold IRA 2022-2026
Augusta’s publicly stated process is “Learn, Talk, Decide”, a structured sequence that starts with their Gold IRA guide, moves to a one-on-one session with a salaried, non-commissioned educator, and then a decision point. That model tends to resonate with federal employees who are accustomed to institutional process rather than commission-driven sales calls. Augusta’s fee structure includes a multi-year fee waiver for qualifying rollover accounts (current terms are reviewed during a free consultation, not published on their site). Industry-reported minimum is around $50,000, so Augusta is best suited for larger TSP balances.
Get Augusta’s free Gold IRA guide + company checklist Money Magazine #1 (2022-2026) · BBB A+ Zero Complaints · Free, no obligationBirch Gold Group
Trusted since 2011 · Headquartered in Iowa · BBB A+ · 40,000+ Americans served
Birch has a dedicated in-house IRA Department that handles rollover paperwork, a practical advantage for federal employees who want help coordinating the TSP request process. They work with multiple IRS-approved depositories: Delaware Depository, Brink’s Global Services, International Depository Services, Texas Precious Metals Depository, and Texas Bullion Depository. The industry-reported minimum is around $10,000, making Birch accessible for smaller TSP balances where Augusta’s threshold may not be met. A single Birch Gold Specialist stays with you throughout the process.
Get Birch’s free Info Kit Trusted by 40,000+ Americans since 2011 · BBB A+ · Industry-reported ~$10,000 minimumNoble Gold Investments
Encino, CA · Noble’s marketing references industry experience going back to 2003 · Texas Depository
Noble operates its own Texas-based depository, a differentiator worth knowing for TSP participants in Texas or those who prefer a non-coastal storage option. Their process moves quickly from application to custodian connection to metals specialist. Noble also offers non-IRA precious metals delivery, though that falls outside IRA tax treatment and is a separate product decision. Industry-reported minimum is around $20,000. Noble’s marketing references industry experience going back to 2003, though the corporate entity is more recent.
Get Noble’s free Gold & Silver guide 16,000+ investors · $2.5B safeguarded · Texas Depository optionFor full user reviews of each company, visit our Augusta Precious Metals review, our Birch Gold Group review, and our Noble Gold Investments review on Goldiew.
Common Mistakes Federal Employees Make with TSP Rollovers
These are the errors that cause real, concrete problems: unexpected tax bills, IRS penalties, or permanently locked-out account options.
Taking an Indirect Rollover Instead of a Direct One
If TSP issues a check payable to you personally, you are in indirect rollover territory. TSP will withhold 20% in federal income tax. You then have 60 days to deposit the full pre-withholding amount, including the 20% you no longer have, into the new IRA. If you fall short, the withheld portion becomes a taxable distribution and may carry a 10% early withdrawal penalty for participants under 59½. The solution is simple: always request a direct rollover so the check goes to the custodian, not to you.
Starting the Rollover Before Separation Is Fully Recorded
TSP cannot process withdrawal requests until your separation is fully entered in their system. Some employees submit a request immediately after their final day and then wait weeks for TSP to process it. Confirm your separation status at tsp.gov first, then submit the withdrawal request. It saves one frustrating round trip.
Ignoring an Outstanding TSP Loan
If you have an active loan against your TSP at the time of separation, the unpaid balance becomes a taxable distribution. It is added to your gross income for the year and may be subject to the 10% early withdrawal penalty if you are under 59½. Per IRS Publication 590-A, loan distributions are not eligible for rollover. The clean path: repay any TSP loan before your separation date, or budget for the tax consequence in advance.
Forgetting the RMD Requirement (Age 73+)
As noted in the tax section: if you are 73 or older, your Required Minimum Distribution for the current year must be taken from TSP before any rollover. Rolling RMD-eligible funds creates an excess contribution in the receiving IRA, which carries a 6% annual excise tax until corrected. Take the RMD first. Then roll the remaining balance.
Purchasing Non-Qualifying Gold Products
Gold held in an IRA must meet IRS fineness requirements: a minimum purity of 0.9950 (99.50%) for most products. The American Gold Eagle coin is a specific IRS exception at 0.9167 purity. Numismatic (collectible) coins and many proof coins do not meet the standard. The gold IRA company’s specialist should guide you to qualifying products, but the IRS Publication 590-B standards are the authoritative reference if you have doubts about a specific product.
Assuming Home Storage Is an Option
IRA gold must be held at an IRS-approved depository, not at your home, in a personal vault, or in a bank safe deposit box. Home storage of IRA metals constitutes a prohibited transaction under IRS rules. The Tax Court ruled in McNulty v. Commissioner (2021) that the entire IRA balance becomes a taxable distribution in the year of the violation. Gold IRA companies manage depository placement as a standard part of their service. It is not an optional add-on.
Frequently Asked Questions
Can active federal employees roll their TSP to a Gold IRA without leaving their job?
Only after reaching age 59½. Active federal employees who have met the age-59½ threshold can request an age-based in-service withdrawal from TSP and roll it to a Gold IRA via direct rollover. Employees under 59½ who remain actively employed cannot initiate a standard IRA rollover from their TSP balance. Hardship withdrawals exist for qualifying financial emergencies, but those distributions are not eligible for rollover, they become taxable distributions in the year received.
How long does a TSP-to-Gold IRA rollover take?
Plan for 2-4 weeks end-to-end. Opening the Gold IRA account takes 1-3 business days. TSP processes withdrawal requests in roughly 7-10 business days after the request is approved. Once the custodian receives the funds, selecting metals and arranging depository delivery adds another week. Delays typically occur when the TSP separation record is incomplete, when an outstanding loan must be resolved first, or when TSP requests additional documentation to confirm eligibility.
Will I pay taxes or penalties on a TSP-to-Gold IRA rollover?
A direct rollover from traditional TSP to a traditional Gold IRA triggers no immediate tax and no penalty, regardless of your age. Traditional TSP funds going to a Roth Gold IRA are treated as a Roth conversion, the full converted amount is added to gross income in the conversion year and taxed at ordinary income rates. No 10% early withdrawal penalty applies to either type of direct rollover. Consult your tax advisor for your specific situation before choosing whether to convert to Roth or maintain the traditional IRA structure.
Is a partial TSP rollover allowed?
Yes. TSP allows separated participants to request partial withdrawals. You could roll $150,000 of a $400,000 TSP balance to a Gold IRA and leave the remaining $250,000 in TSP. This flexibility lets federal retirees access physical gold exposure without committing their entire retirement savings to a single account type. Partial withdrawal options and any associated rules are confirmed at tsp.gov, they may vary based on your beneficiary elections and account configuration.
What happens to Roth TSP contributions in a rollover?
Roth TSP contributions (made with after-tax dollars) must roll to a Roth IRA. They cannot be combined with traditional IRA funds in the receiving account. The rollover itself is not a taxable event, the contributions were already taxed when you made them. If your preferred gold IRA company does not offer Roth SDIRAs, you will need to find one that does or hold your Roth TSP funds in a separate Roth account elsewhere. Most established gold IRA companies can accommodate both account types for a single participant, confirm before signing paperwork.
Can military members (uniformed services TSP) also roll to a Gold IRA?
Yes. TSP covers both FERS/CSRS civilian federal employees and uniformed service members across all branches: Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, National Oceanic and Atmospheric Administration Corps, and the Public Health Service Commissioned Corps. The rollover eligibility rules are functionally identical: separation from service, or an age-59½ in-service withdrawal for those still serving. Active duty personnel under 59½ face the same restriction as civilian employees, the standard IRA rollover is not available until separation or the age threshold is met.
What gold products are IRS-approved for a Gold IRA?
Gold held in an IRA must meet a minimum fineness of 0.9950 (99.50% pure) per IRS Publication 590-B. The American Gold Eagle coin is a specific IRS exception, it is approved despite a 0.9167 purity because Congress explicitly authorized it. Other approved options include the American Gold Buffalo (0.9999 pure), Canadian Gold Maple Leaf, Austrian Gold Philharmonic, and gold bars from LBMA-accredited refiners meeting the 0.9950 standard. Numismatic and collectible coins generally do not qualify. The gold IRA company’s specialist will guide you, but verify any specific product against IRS criteria if you have questions.
Can I roll my Gold IRA back into TSP or another plan later?
No. TSP does not accept incoming rollovers from IRAs or other retirement accounts. It accepts contributions only through active federal employee payroll deduction. Once funds leave TSP via a rollover, they cannot return. If you later change your mind about the Gold IRA, you can roll the funds to another IRA or to a new employer’s 401(k) or 403(b) plan that accepts incoming rollovers, but the TSP door closes permanently on exit. That one-way nature is a key factor to weigh before initiating any rollover.
How do Gold IRA fees compare to TSP costs on a $250,000 balance?
TSP’s net administrative expense on a $250,000 balance runs roughly $100/year at a 0.040% ratio. A Gold IRA at the lower end of the typical fee range ($250/year combined custodian and storage) costs 2.5x more in dollar terms. At the higher end ($550/year), the gap is about 5.5x. Gold IRA fees are fixed rather than percentage-based, so the relative cost gap narrows as balances grow. A licensed financial advisor can model the actual fee impact over your specific retirement horizon and account size, that analysis will be more useful than any general comparison.
Is a Gold IRA a scam?
A self-directed IRA holding physical precious metals is a legal, IRS-recognized retirement account structure. The legal framework is well-established. That said, the precious metals industry has a documented history of fraud: inflated numismatic coin pricing, hidden fees, misrepresented storage arrangements, and high-pressure sales tactics. FINRA’s precious metals fraud alert and the SEC’s investor alert on gold and silver detail the specific warning signs. Choose companies with verifiable BBB ratings, transparent published fees, and no pressure tactics. Any company that predicts gold price increases, guarantees returns, or urges you to act immediately is a company to avoid.
Sources and Methodology
TSP rollover rules cited in this guide are sourced from IRS Publications 590-A and 590-B, the SECURE 2.0 Act, and TSP.gov’s official public guidance. Company facts (founding year, BBB status, customer counts) are sourced from Goldiew’s company verification records canonical fact file, last verified 2026, and from public partner websites. Goldiew user review ratings reflect moderated, verified UGC reviews from our internal review database. Company claims verified against BBB profiles and official company websites.
- IRS Publication 590-A: Contributions to IRAs
- IRS Publication 590-B: Distributions from IRAs
- IRS: Rollovers from Retirement Plans (Topic 413)
- TSP.gov: Official Thrift Savings Plan website
- SECURE 2.0 Act (Public Law 117-328)
- FINRA: Precious Metals Fraud Investor Alert
- SEC: Gold and Silver Investor Alert
- BBB Profile: Augusta Precious Metals
- Augusta Precious Metals (public claims verification, 2026)
- Birch Gold Group (public claims verification, 2026)
- Noble Gold Investments (public claims verification, 2026)