The Thrift Savings Plan is one of the best retirement plans in America. Low fees. Solid fund options. Government matching. But there's one thing it cannot do: hold physical gold.
If you're a federal employee or military member who's watched the markets swing wildly, you've probably wondered: "Can I protect some of this money with real assets?"
The answer is yes—through a TSP to Gold IRA rollover. You can move some or all of your TSP funds into a Self-Directed IRA that holds physical gold, without triggering taxes or penalties (if you do it right).
Here's exactly how it works.
Active Duty / Federal Employees
What is a TSP to Gold IRA Rollover?
A TSP to Gold IRA rollover is exactly what it sounds like: moving money from your Thrift Savings Plan into a Self-Directed IRA that can hold physical precious metals.
Think of it as transferring your retirement savings from one bucket (TSP's paper funds) to another bucket (an IRA that owns actual gold bars and coins). The money never hits your bank account—it goes directly from TSP to your new IRA custodian.
Why do this? Because the TSP, for all its benefits, only offers five core funds—all of them paper assets tied to stocks, bonds, or government securities. There's no option for physical gold, real estate, or any alternative investment. A Gold IRA gives you that option.
Eligibility: Active vs Separated
This is where it gets a little tricky. Your eligibility depends on your employment status:
Separated from Service
If you've left federal employment (retired, resigned, or separated), you can roll over your entire TSP at any age, no restrictions.
This is the easiest path. Most people do rollovers after they leave government service.
Still Working (Age 59½+)
If you're still employed but over 59½, you can take an "age-based in-service withdrawal" and roll it into a Gold IRA while continuing to work.
You keep your job, keep getting matching, and diversify part of your savings into gold.
Under 59½ and Still Working?
TSP Funds vs. Physical Gold
Let's be real about what you're holding in the TSP:
- G Fund: Government bonds. "Safe," but barely beats inflation—often loses purchasing power over time.
- F Fund: Corporate bonds. Slightly better returns, more risk.
- C Fund: S&P 500 stocks. Great when markets are up, brutal when they crash.
- S Fund: Small-cap stocks. More volatile than C Fund.
- I Fund: International stocks. Tied to foreign economies and currencies.
Notice what's missing? Anything real. Every fund is paper—stocks, bonds, government IOUs. When the financial system hiccups, they all tend to move together.
Gold is different. It's not someone else's liability. During the 2008 crash, the C Fund dropped 37%. Gold rose 5%. During the 2020 pandemic panic, gold hit all-time highs while stocks cratered. That's the hedge you can't get inside the TSP.
Step-by-Step Process
Here's the exact process to roll over your TSP to a Gold IRA:
Open a Self-Directed Gold IRA
Choose a Gold IRA company and open your account. They'll set you up with a custodian (like Equity Trust or New Direction IRA) who can hold physical metals.
Get Your New IRA Account Details
Your Gold IRA company will provide the custodian name, address, and account number needed for the transfer.
Log Into TSP.gov
Go to tsp.gov and use the "Withdrawals" section. The online wizard walks you through the options.
Select "Transfer to IRA" (Direct Rollover)
Critical: Choose the option to transfer directly to another retirement account. Do NOT have them send you a check—that triggers 20% withholding.
Purchase Gold
Once funds arrive at your new IRA (usually 1-2 weeks), work with your Gold IRA company to select and purchase IRS-approved coins and bars.
Critical Forms: TSP-70, TSP-75, TSP-99
Good news: the TSP has modernized. Most withdrawals now happen through the online wizard at tsp.gov—no paper forms needed. But it helps to know what's happening behind the scenes:
- Form TSP-70: Full withdrawal request (for separated employees)
- Form TSP-75: Age-based in-service withdrawal (for active employees 59½+)
- Form TSP-99: Used to designate beneficiaries (not for withdrawals)
The online system will generate the appropriate form based on your selections. Just make sure you choose "Transfer to IRA or eligible employer plan"—not a cash distribution.
The 20% Withholding Trap
Tax Rules & Penalties
Here's the good news: a properly executed TSP to Gold IRA rollover is 100% tax-free. No taxes. No penalties. The money simply moves from one retirement account to another.
The key is matching account types:
| From TSP | To IRA | Tax Impact |
|---|---|---|
| Traditional TSP | Traditional Gold IRA | Tax-Free |
| Roth TSP | Roth Gold IRA | Tax-Free |
| Traditional TSP | Roth Gold IRA | Taxable (Conversion) |
Early Withdrawal Penalty: If you take a distribution (not a rollover) before age 59½, you'll owe a 10% early withdrawal penalty plus income taxes. That's why rolling over to another IRA—not cashing out—is so important.
Common Mistakes to Avoid
Taking a check instead of direct transfer
Triggers 20% withholding and creates a 60-day deadline. Always choose direct transfer.
Rolling over while under 59½ and still employed
You're not eligible for a rollover unless you've separated from service or qualify for age-based withdrawal.
Rolling Traditional TSP to Roth IRA without planning
This is a taxable conversion. You'll owe income taxes on the entire amount that year. Plan accordingly.
Choosing the wrong Gold IRA company
High fees, pushy sales tactics, or non-IRA-approved products can ruin your rollover. Research thoroughly.
TSP Rollover FAQs
Can I roll over my TSP to a Gold IRA while still working?
Yes, if you are age 59½ or older, you can take an 'age-based in-service withdrawal' and roll it over to a Gold IRA while continuing to work and contribute to the TSP. If you are under 59½, you typically must be separated from service to roll over funds, unless you qualify for a financial hardship withdrawal (which has different rules).
Does the TSP allow physical gold investment?
No. The Thrift Savings Plan offers 5 core funds (G, F, C, S, I) and Lifecycle funds. It does not allow for direct investment in physical precious metals. To own physical gold, you must roll funds out of the TSP into a Self-Directed Gold IRA.
Which TSP form do I need for a rollover?
You will typically use the 'withdrawal wizard' on the TSP.gov website to generate the correct form. For a full withdrawal after leaving service, it's often Form TSP-70. For a partial in-service withdrawal, it is Form TSP-75 or similar. Your Gold IRA custodian will help you fill these out.
Protect Your Federal Retirement
See how easy it is to add physical gold to your portfolio without penalties.
Written By
Thomas Richardson
Thomas is a former wealth manager with 20+ years of experience. He founded Rich Dad Retirement to expose the flaws of traditional "paper asset" retirement planning and educate Americans on the stability of physical precious metals.