Federal employees and service members can move Thrift Savings Plan money into a gold IRA, usually after leaving service or from age 59½. The move itself is simple if the money goes directly from the TSP to the new custodian. The harder questions are how much to move and who you're moving it with, because the TSP is one of the lowest-cost retirement plans in the country.
When You Can Move TSP Money
| Your situation | Can you move TSP money to an IRA? |
|---|---|
| Separated from federal service | Generally yes, all or part of your balance |
| Still employed, age 59½ or older | Yes, through age-based in-service withdrawals |
| Still employed, under 59½ | Generally no, apart from limited hardship withdrawals, which can't be rolled over |
The TSP's rules and forms change from time to time, so confirm your options on TSP.gov before you start.
Traditional TSP vs. Roth TSP
- Traditional TSP money goes to a traditional gold IRA with no tax due.
- Roth TSP money goes to a Roth gold IRA. See Roth gold IRA.
- Moving traditional TSP money into a Roth IRA is a conversion: the amount is taxable that year.
If you have both balances, you may need two IRAs, one traditional and one Roth.
How to Move TSP Money Into a Gold IRA
- Decide how much belongs in metals. Do this before you talk to any dealer. See is a gold IRA a good idea?
- Open the self-directed gold IRA. You'll need the new custodian's name, account number and transfer instructions.
- Request a withdrawal or transfer from the TSP and choose to have it paid directly to the IRA custodian, not to you.
- Confirm the money arrives at the new custodian.
- Approve a written metals order: products, quantities, price per ounce, spot price and total.
- Keep your paperwork. The TSP issues Form 1099-R; the new custodian issues Form 5498.
Don't take a check payable to yourself. The TSP must withhold 20% for federal tax on an eligible rollover distribution paid to you, and you'd have 60 days to deposit the full amount, including the withheld 20% from other savings, to avoid tax. A direct transfer avoids all of that. Full rules: gold IRA rollover guide.
What You Give Up by Leaving the TSP
The TSP is famously cheap. Its funds charge very low expense ratios, and the G Fund can't lose principal. A gold IRA, by contrast, has setup, custodian and storage fees plus a dealer premium on the metal, and gold can fall in value for years. That's not a reason never to move money, but it is a reason to move only the portion you've decided should be in metals.
| TSP | Gold IRA | |
|---|---|---|
| Annual costs | Very low fund expense ratios | Flat custodian and storage fees, often $200 to $300+ |
| Purchase costs | None for core funds | Dealer premium over melt value |
| Principal protection | G Fund principal protected | None; metal prices fluctuate |
| Assets | Bond, stock and lifecycle funds | Physical gold, silver, platinum, palladium |
Federal Retirees Are Targets
People rolling large retirement balances are prime targets for precious metals fraud. In the Red Rock Secured case, federal and state regulators charged a dealer with steering older customers into coins at hidden markups that a 2024 court order put at roughly 92% to 130%. Pitches aimed at federal workers often warn of government shutdowns, debt crises or "TSP risk." Be skeptical of anyone who:
- tells you to move all or most of your TSP,
- won't give you the markup over spot in writing,
- pushes "premium" or "limited" coins instead of bullion, or
- pressures you to act before talking to family or an adviser.
See gold IRA scams for the full list of red flags.