TSP to Gold IRA - How Federal Employees Can Add Physical Gold (2026)

The Thrift Savings Plan doesn't offer gold or precious metals funds, so federal employees and service members who want physical gold in their retirement savings move money from the TSP into a self-directed gold IRA. If you've left federal service, you can generally roll over your TSP balance at any time. If you're still working, you can usually do it only after age 59½, through an age-based in-service withdrawal.

Done as a direct rollover, the move isn't taxed or penalized. Below, we cover eligibility, the steps, how Roth TSP money is handled and whether it makes sense to move only part of your balance.

Why the TSP Can't Hold Gold

The TSP offers a small menu of low-cost funds: the G, F, C, S and I Funds, plus Lifecycle (L) Funds that blend them. None of them hold physical metal, and the TSP doesn't offer a self-directed option.

That simplicity is a strength. The TSP's costs are among the lowest of any retirement plan in the country. It also means that if you want physical gold, you need an IRA that can hold it.

Who Can Move TSP Money Into a Gold IRA

Table: TSP rollover eligibility by situation | Your situation | Can you roll TSP money to a gold IRA? | How | |---|---|---| | Separated from federal service or retired | Yes | Post-separation withdrawal as a direct rollover | | Still employed, age 59½ or older | Yes, a portion or all | Age-based in-service withdrawal as a direct rollover | | Still employed, under 59½ | Generally no | Hardship withdrawals can't be rolled over | | Beneficiary participant account | Rules differ | Check TSP beneficiary account rules |

The TSP limits how many age-based in-service withdrawals you can take each year, so plan the amount carefully. Check the current rules on the TSP's own site before you start.

Step-by-Step: TSP to Gold IRA

Married participants in certain plans may need spousal consent or notice for withdrawals, which can add time. Allow a few weeks for the full process.

Traditional vs Roth TSP Balances

Many federal employees have both traditional and Roth TSP money. They need to stay separate to keep their tax treatment.

• Traditional TSP money should roll to a traditional gold IRA. No tax at the time of the rollover.
• Roth TSP money should roll to a Roth gold IRA to keep its tax-free status.
• Tax-exempt contributions from combat zone pay follow special rules; ask the TSP and your custodian how they'll be handled.

When you withdraw from the TSP, the withdrawal generally comes proportionally from your traditional and Roth balances, so you may need two receiving IRAs. See Roth gold IRA.

How Much of Your TSP to Move

There's no limit on how much you can roll over once you're eligible. But the TSP's very low costs are worth weighing against a gold IRA's flat yearly fees.

Table: Illustrative split of a $300,000 TSP balance | Moved to gold IRA | Left in TSP | What it means | |---|---|---| | $30,000 (10%) | $270,000 | Modest gold position; flat fees about 0.7% of the gold portion | | $60,000 (20%) | $240,000 | Meaningful gold position; flat fees under 0.4% of the gold portion | | $150,000 (50%) | $150,000 | Large concentration in one asset; higher risk if gold falls |

Figures assume flat yearly gold IRA fees of about $225 and are illustrative only. Many federal savers move a portion and keep the rest in low-cost TSP funds. For help thinking about the size, see how much gold in a retirement portfolio.

Taxes and Penalties

A direct rollover from the TSP to a traditional gold IRA isn't taxable. If the TSP pays the money to you instead, it must withhold 20%, and you'll have 60 days to deposit the full amount, including the withheld portion, to avoid tax.

There's another age-related point. If you separate from federal service in or after the year you turn 55 (or 50 for certain public safety employees), you may be able to take TSP withdrawals without the 10% early withdrawal penalty. Once that money is in an IRA, IRA rules apply instead, and withdrawals before 59½ usually carry a 10% penalty. If you might need money before 59½, think carefully about how much to move. See IRA transfer vs rollover.

What Happens to Your TSP Funds During the Move

When you request a withdrawal, the TSP sells the needed shares from your funds, generally in proportion to your current allocation, and sends the cash. For the days or weeks the money is in transit, it isn't invested.

If you'd prefer to take the money from a particular fund, such as the G Fund, you may be able to rebalance inside the TSP first through an interfund transfer, then request the withdrawal. Check the TSP's current rules on how withdrawals are sourced.

Common TSP Rollover Mistakes

• Requesting a payment to yourself. That triggers 20% withholding and a 60-day deadline.
• Forgetting the Roth portion. Withdrawals are often split between traditional and Roth balances, so have a Roth IRA ready if needed.
• Moving money you'll need before 59½. You may lose penalty-free access available from the TSP after separation.
• Using up your in-service withdrawals. Age-based in-service withdrawals are limited each year, so plan the amount.
• Buying mostly premium coins. Standard bullion usually carries smaller premiums.

Costs to Expect

• TSP: no fee to withdraw, though check current rules for any processing charges.
• Gold IRA setup: often around $50.
• Yearly custodian and storage fees: commonly about $175–$300 combined.
• Product premiums: the dealer's markup over spot, which varies most.

Because TSP costs are so low, a gold IRA will almost always cost more per dollar each year. The question is whether direct ownership of physical gold is worth that difference to you. Our gold IRA fees page shows how to compare quotes.

What About Your FERS Pension?

Your FERS basic annuity isn't an account you can roll over; it's a lifetime pension paid by the government. Only your TSP balance (and any other retirement accounts) can be moved into a gold IRA. Some federal retirees see their pension as their "safe" income and use a modest gold position in an IRA for diversification of the rest.