Military TSP to Gold IRA: Rollover Guide for Veterans & Service Members

Since 2018, all new military service members are enrolled in the Blended Retirement System (BRS). Unlike the legacy "20-year" retirement system, BRS combines a reduced pension with TSP matching contributions — making the TSP a critical part of military retirement.

• Automatic 1% contribution from DoD to your TSP starting on your 60th day of service
• Up to 5% matching on your own contributions (dollar-for-dollar up to 3%, then 50 cents on the dollar for the next 2%)
• Fully vested after 2 years of service — the matching is yours even if you separate before 20 years
• Legacy system: No matching, but 50% of base pay pension at 20 years (vs 40% under BRS)
• Continuation pay: BRS members receive a lump-sum bonus at 12 years (2.5x-13x monthly basic pay)

Your military TSP account works similarly to the civilian version, but there are key differences that affect your rollover strategy.

• Same fund options: G, F, C, S, I, and Lifecycle funds — still zero precious metals
• Combat zone contributions: Can exceed the normal $23,500 limit (up to $70,000 total in 2026) when in a combat zone
• Tax-exempt contributions: Money contributed from combat pay goes in tax-free (Roth treatment even in traditional TSP)
• Separate from civilian TSP: If you later become a federal civilian employee, you'll have two separate TSP accounts (can combine them)
• Deployment limitations: Hard to manage your TSP allocation when deployed — many service members stay in default Lifecycle Fund

If you contributed to your TSP while deployed to a combat zone, those contributions are classified as tax-exempt — essentially Roth money even if it went into a traditional TSP account. This creates a unique advantage when rolling over to a Gold IRA.

• Tax-exempt contributions can be rolled into a Roth Gold IRA — where they continue growing tax-free forever
• No income limits for this rollover (unlike normal Roth IRA income restrictions)
• Separating tax-exempt contributions: TSP tracks these separately. When you roll over, you can direct tax-exempt funds to a Roth IRA and traditional funds to a traditional IRA
• Double tax benefit: Combat pay wasn't taxed going in, and in a Roth Gold IRA, it won't be taxed coming out
• Example: $30,000 in combat zone contributions + growth could become $60,000+ in 20 years — all 100% tax-free in a Roth Gold IRA

Many veterans receive VA disability compensation. Here's how it interacts with Gold IRA investments — the good news is, it doesn't create any problems.

• VA disability is tax-free — it's not counted as income for IRA contribution limits or Roth eligibility
• Gold IRA investments don't affect your VA rating or benefit amount
• CRSC and CRDP: Combat-Related Special Compensation and Concurrent Retirement Disability Pay are also not affected by Gold IRA investments
• You still need earned income to make new IRA contributions. VA disability alone doesn't count — but TSP rollovers don't require earned income
• Medicaid consideration: If you later need Medicaid, Gold IRA assets may be counted. VA benefits and VA pension have different asset rules

The rollover process for military TSP is nearly identical to the civilian process, with one extra consideration — combat zone contributions.

1. 1Verify separation status: You must be separated from military service (DD-214 in hand) or be age 59½+ for in-service withdrawal
2. 2Choose a Gold IRA custodian: Look for custodians experienced with military TSP rollovers — they understand combat zone contribution splitting
3. 3Determine your rollover amount: Decide how much to roll over (10-15% is typical). Check your TSP statement for tax-exempt vs. traditional balances
4. 4Open your Gold IRA: Your custodian handles the paperwork. Specify if you want traditional, Roth, or both (for split rollovers)
5. 5Request direct rollover through TSP.gov: Use the online withdrawal wizard. Select "transfer to IRA" and enter your custodian's information
6. 6Select your precious metals: Choose IRA-approved gold and silver coins/bars
7. 7Storage and confirmation: Metals stored in an IRS-approved depository. You receive purchase confirmation and storage documentation

When you separate from the military, you have several options for your TSP. Many veterans leave their money sitting in the TSP without realizing they have better options.

• Leave it in TSP: You can keep your money in TSP after separation, but you can't make new contributions. Same limited fund options.
• Roll to Gold IRA (partial): Move 10-15% to gold for diversification, keep the rest in TSP
• Roll to Gold IRA (full): Move everything to a self-directed IRA for maximum control and precious metals access
• Roll to new employer's 401(k): If you start a civilian job. But most 401(k)s also lack gold options.
• Cash out (worst option): You'll pay income tax plus 10% early withdrawal penalty if under 59½. Avoid this.