TSP to Gold IRA Rollover Guide

A Thrift Savings Plan (TSP) is a retirement savings plan for federal employees and members of the uniformed services. Converting a TSP into a Gold IRA is similar to rolling over other employer‑sponsored accounts, but it has unique administrative steps. By transferring funds from your TSP into a self‑directed Gold IRA, you can diversify with physical precious metals while maintaining tax advantages.

Direct Transfer vs. 60-Day Rollover

There are two ways to move your TSP into a Gold IRA:

1. Direct Transfer: The TSP administrator sends your funds straight to your new self‑directed Gold IRA custodian. There’s no tax withholding or time limit, making this the simplest method. You complete transfer paperwork, and the custodian receives the funds directly.

2. 60-Day Rollover: The TSP cuts you a check for the distribution. You have 60 days to deposit it into your new Gold IRA or the withdrawal will be treated as taxable income. The TSP will withhold 20% for taxes. You’ll need to replace that amount from other funds to deposit the full balance and avoid tax and penalty. Because of the withholding and deadline, most investors opt for a direct transfer.

Steps to Convert a TSP to a Gold IRA

1. Open a Self-Directed Gold IRA: Select a custodian that offers self-directed IRAs holding precious metals. Compare custodians on our Gold IRA Custodians page.

2. Select IRS-Approved Metals: Only certain gold, silver, platinum, and palladium coins and bars are permitted. Review our Approved Metals list.

3. Choose a Depository: Gold held in a self-directed IRA must be stored at an IRS-approved depository. Options include Delaware Depository and Brink’s. Learn more on our Gold IRA Storage page.

4. Initiate the Transfer: Contact the TSP administrator and complete the necessary forms to request a direct transfer to your Gold IRA. Provide the custodian’s trustee-to-trustee transfer information.

5. Fund and Purchase Metals: Once the transfer is complete, instruct your custodian to purchase the selected metals at current market prices. They will facilitate the purchase and arrange secure storage.

Key Considerations

• Plan Restrictions: TSP rules may restrict in‑service withdrawals. If you’re still employed by the federal government and under age 59½, you may only be eligible for an in‑service rollover of Roth balances, or you may need to wait until separation. Check your plan rules.

• Tax Withholding: If you choose a 60‑day rollover, the TSP will withhold 20% for taxes. You must deposit the entire distribution (including withheld taxes) into your Gold IRA within 60 days to avoid taxes and penalties.

• Record Keeping: Maintain documentation of the transfer and purchase confirmations for tax purposes. The IRS may ask you to prove that the rollover was completed within deadlines and that metals are stored at an approved facility.

By following these steps, you can diversify your federal retirement savings with physical gold and other precious metals. For more details on tax rules, visit our Gold IRA Tax Rules page, and for a broader overview of rollover procedures, see our Gold IRA Rollover Guide.