TSP Rollover Into Precious Metals
You can move money out of the Thrift Savings Plan (TSP) into a self-directed IRA that holds IRS-approved metals, but only when the TSP allows a withdrawal, which for most participants means after separating from federal service. You request the withdrawal through the TSP and tell it to transfer the money directly to your new IRA custodian. The TSP itself cannot hold physical gold or silver.
Why the TSP Can't Hold Metal
The TSP is the defined contribution plan for federal civilian employees and members of the uniformed services. It offers a fixed lineup of funds, including the G, F, C, S, and I funds and lifecycle L funds, plus a mutual fund window. Physical bullion is not one of the options. To own gold or silver inside a tax-advantaged account, the money has to move to a self-directed IRA whose custodian accepts precious metals.
When TSP Money Can Leave
The TSP describes its withdrawal options on tsp.gov. In broad terms:
- After separation. Once you leave federal service, you can generally take a full or partial withdrawal, and those withdrawals can be transferred to a traditional or Roth IRA.
- While still employed. The TSP offers limited in-service withdrawals, including age-based withdrawals after an IRS-defined age and financial hardship withdrawals. Hardship withdrawals cannot be rolled over. Our page on in-service rollovers covers the general concept.
- Loans. If you leave with an outstanding TSP loan, the TSP has rules for repaying it or treating the unpaid balance as a taxable distribution. Settle that question before requesting a withdrawal.
TSP rules change from time to time, so read the current withdrawal pages on tsp.gov before you start.
Steps to Transfer TSP Money Into Gold or Silver
- Open a self-directed IRA. Pick a custodian that holds physical metals. Your traditional TSP balance goes to a traditional IRA; any Roth TSP balance goes to a Roth IRA.
- Get the custodian's transfer details. You'll need the custodian's name as payee, your account number, its address, and whether the IRA is traditional or Roth. Some transfers require the receiving custodian to complete or certify part of the request.
- Request the withdrawal from the TSP. The TSP handles withdrawal requests through its online account and its published forms. Choose to transfer the money to an IRA rather than receive it yourself.
- Handle any spousal requirements. Married participants may need spousal consent or have notice sent to a spouse, depending on retirement system and withdrawal type. The TSP explains these rules.
- Wait for the transfer to post. The TSP sends payment to the custodian. Watch your TSP account and the new IRA until both reflect the move.
- Buy eligible metals. Choose coins or bars that meet IRS fineness standards. The custodian pays the dealer, and metal goes to an approved depository.
Traditional and Roth Balances Travel Separately
Many TSP participants have both a traditional balance and a Roth balance, and some uniformed service members also have tax-exempt contributions from combat zone pay. The TSP tracks these sources separately. The traditional portion goes to a traditional IRA; the Roth portion goes to a Roth IRA. Read the TSP's guidance on tax-exempt balances before transferring them, since how they are handled can affect future taxes. If you want metals in a Roth, see our Roth gold IRA guide.
Why a Direct Transfer Matters
If the TSP pays an eligible withdrawal to you instead of to an IRA, federal rules require 20% withholding, and you'd have 60 days to deposit the full amount, including the withheld part from other funds, to avoid tax. A direct transfer avoids both problems. Our pages on direct vs indirect rollovers and rollover tax withholding explain why.
Weighing the Move
The TSP is known for low administrative costs. A self-directed IRA holding physical metal has its own costs, including custodian, storage, and dealer spreads, and metal produces no interest or dividends. Some federal employees move part of their balance for diversification and keep the rest in the TSP. Others leave it alone. There's no single right answer, and that choice is yours to make with a licensed professional. Our pages on gold IRA pros and cons and gold for diversification lay out the considerations.
Using Goldco for a TSP Transfer
Goldco is a precious metals company that offers gold and silver for IRAs funded by transfer or rollover from existing retirement accounts. It says it works with all major self-directed IRA custodians, and IRA metals go to an independent insured depository. Its precious metals specialists can explain the custodian's paperwork but are not licensed to give financial, legal, or tax advice. See how Goldco works for its step-by-step process.
Frequently Asked Questions
Can I buy gold inside the TSP?
No. The TSP offers only its own funds and a mutual fund window. Physical metal requires a self-directed IRA.
Can I move only part of my TSP balance?
The TSP allows partial withdrawals after separation. Check tsp.gov for current limits on frequency and type.
Does the TSP charge to transfer out?
Check tsp.gov for any current charges. The receiving custodian and depository will have their own fees, which you should get in writing.
Can my Roth TSP go into a gold IRA?
Yes, into a self-directed Roth IRA that allows metals. Roth money can't go into a traditional IRA.