TSP to Gold IRA Rollover: A 2026 Guide for Federal Employees & Military
You cannot hold physical gold inside the Thrift Savings Plan, but once you are eligible for a distribution you can roll TSP funds into a self-directed IRA that holds IRS-approved metals. Eligibility generally means you have separated from federal service or reached age 59½ (which allows an age-based in-service withdrawal). A direct, trustee-to-trustee rollover keeps the money tax-deferred and avoids the mandatory 20% withholding that applies when a check is sent to you.
The TSP itself has no gold option. To hold metals, eligible participants roll TSP funds into a self-directed IRA. Use a direct rollover to avoid 20% withholding and the 60-day redeposit trap. Traditional TSP moves to a Traditional IRA tax-deferred; Roth TSP must go to a Roth IRA to stay tax-free. The TSP is known for very low fees, so weigh that trade-off. None of this is a recommendation — eligibility is a matter of plan rules, not of whether the move is right for you.
Important: This page is educational and general in nature. It is not investment, tax, or legal advice. TSP and IRS rules change — confirm current eligibility and procedures with the TSP and a licensed professional before moving any funds.
When can you roll your TSP out?
After you separate from service
Once you retire, resign, or otherwise separate from federal or uniformed service, you may roll your entire TSP balance into an IRA or another eligible plan. There is no IRS deadline for a direct rollover.
While still working, at age 59½ or older
Participants who have reached age 59½ may take an age-based in-service withdrawal and roll all or part of it into an IRA while remaining employed.
Uniformed services & combat-zone contributions
Military members follow the same general eligibility. Tax-exempt (combat-zone) contributions have their own handling on rollover — confirm the specifics with the TSP so those amounts are tracked correctly.
Direct vs. indirect: the 20% withholding trap
Direct rollover (recommended)
The TSP sends the funds straight to your new IRA custodian. Nothing is withheld, no tax is triggered, and there is no 60-day clock. This is the cleanest way to move retirement money.
Indirect rollover (riskier)
The TSP pays you directly and must withhold 20% for federal tax. To complete the rollover you have 60 days to deposit the full original amount — including the withheld 20%, from your own pocket — or the shortfall is treated as a taxable distribution, possibly with a 10% penalty if you are under 59½.
Roth TSP note
A Roth TSP balance should be rolled into a Roth IRA to preserve its tax-free treatment. Moving traditional TSP dollars into a Roth IRA is a taxable conversion — a decision to review with a tax professional first.
Trade-offs federal savers should weigh
- TSP fees are famously low. The TSP’s administrative costs are among the lowest of any retirement plan. A self-directed gold IRA adds custodian, storage, and dealer costs — compare the full annual cost before deciding.
- The age-55 separation exception is a TSP feature. Civilian federal employees who separate in or after the year they turn 55 may avoid the 10% early-withdrawal penalty on TSP distributions. That exception generally does not carry over once money is inside an IRA.
- Partial rollovers are allowed. You do not have to move your entire balance. Some savers roll a portion and leave the rest in the TSP.
- Only IRS-approved metals qualify. Once in the IRA, the gold must meet purity rules and be held at an approved depository — not at home.
TSP vs. gold IRA at a glance
| Factor | Thrift Savings Plan (TSP) | Self-directed gold IRA |
|---|---|---|
| Holds physical metals | No | Yes — IRS-approved coins & bullion |
| Typical annual cost | Among the lowest of any retirement plan | Custodian, storage & dealer premiums |
| Investment menu | 5 core funds (G, F, C, S, I) + Lifecycle funds | IRS-approved coins & bullion |
| Age-55 separation penalty exception | Yes, for qualifying civilian separations | Generally lost once funds are in an IRA |
| Ongoing contributions | Payroll deferrals while in service | Personal IRA limits, if eligible |
| Storage | Recordkept by the TSP | Approved depository only — never at home |
This comparison is educational and general in nature. It is not a recommendation to move funds. Confirm current TSP and IRS rules with the official source and a licensed professional.
See the numbers for yourself
Before moving any TSP savings, see how inflation has historically affected the purchasing power of cash and other assets over 5–30 years with our free interactive tool.
Frequently asked questions
Can I hold gold directly inside my TSP?
No. The TSP offers a fixed set of index funds (G, F, C, S, and I) and Lifecycle funds only. To hold physical metals you must roll eligible funds into a self-directed IRA.
Do I have to leave federal service to roll my TSP into a gold IRA?
Not necessarily. If you are 59½ or older you can take an age-based in-service withdrawal and roll it over while still employed. Otherwise, eligibility generally begins after you separate from service.
Will a TSP-to-gold-IRA rollover trigger taxes?
A direct rollover of traditional TSP funds to a Traditional IRA is not taxed. An indirect rollover risks tax and penalty if not completed within 60 days. Moving traditional TSP money to a Roth IRA is a taxable conversion. Confirm with a tax professional.
Is the TSP cheaper than a gold IRA?
The TSP is known for very low administrative fees. A gold IRA adds custodian, storage, and dealer costs. This page explains the trade-off so you can compare — it is not a recommendation.
Does the TSP charge a fee to roll money out?
The TSP does not charge a penalty for a rollover itself; you submit a withdrawal or rollover request. The costs to weigh are on the receiving gold IRA side: custodian, storage, and dealer premiums. Confirm the current process with the TSP.
Can I keep contributing to the TSP after a partial rollover?
Generally yes. A partial in-service or post-separation rollover does not close your TSP account, and employed participants continue payroll contributions. Confirm specifics with the TSP.
Sources & authoritative references
This page draws on primary sources. Rules can change — always confirm current details with the official source or a licensed professional before acting.
- IRS — Rollovers of Retirement Plan and IRA DistributionsIRS guidance on direct vs. indirect rollovers and the 60-day rule.
- U.S. Office of Personnel Management — Retirement CenterOfficial federal retirement information for FERS/CSRS employees.
- IRS Publication 590-A — Contributions to IRAsOfficial IRS rules on IRA contributions and rollovers.
- 26 U.S. Code § 408(m) — Bullion exceptionThe federal statute defining which coins and bullion an IRA may hold.
About this guide
Published and maintained by Metals Retirement Audit · Last reviewed July 2026
Metals Retirement Audit publishes educational reference material on precious-metals retirement accounts for U.S. savers. Guides are written and maintained under the organization’s name rather than attributed to an individual, and they are reviewed on a recurring schedule so the rules, limits, and figures they cite stay current.
Sourced from primary documents
Rules and figures are drawn from IRS publications, the U.S. Code, and federal regulators such as the SEC, CFTC, and FINRA — cited on each page so you can check them yourself.
Reviewed and dated
Every guide carries a visible review date. Tax figures and contribution limits are re-checked against the current year’s official guidance when that date changes.
Corrections welcome
Spotted something out of date or inaccurate? Tell us and we will review it. Accuracy matters more to us than page count.
This page is educational and general in nature. It is not investment, tax, or legal advice and does not account for your individual circumstances. TSP and IRS rules change over time. Confirm current eligibility and procedures with the Thrift Savings Plan and a licensed professional before making any decision.
Disclosure: We may earn a referral fee when you connect with a precious metals company through this site, at no additional cost to you. This does not influence the educational information above. We are not a financial advisor, broker, or dealer. This site is not affiliated with, or endorsed by, the U.S. government, the Thrift Savings Plan, or any federal agency.