TSP to Gold IRA: How to Move a Portion of Your Thrift Savings Plan to Physical Gold and Silver

If you’re a federal employee or member of the uniformed services, chances are your retirement nest egg is tied up in the Thrift Savings Plan (TSP). 

While the TSP offers several investment options, they’re limited to traditional paper assets—stocks, bonds, and government securities. But in times of inflation, rising debt, and global instability, many retirement savers are looking for ways to hedge their savings with physical assets like gold and silver.

That’s where a Gold IRA comes in.

In this guide, we’ll walk you through how to convert a portion of your TSP into a Gold IRA—giving you the ability to hold physical precious metals inside a tax-advantaged retirement account.

We’ll cover the reasons people make the switch, how the rollover process works, and what to look for in a trustworthy Gold IRA company.

Whether you're nearing retirement or just want more control over your financial future, this article will show you how to diversify your TSP with real gold and silver.

Why Convert TSP to a Gold IRA?

Rolling over a portion of your Thrift Savings Plan into a Gold IRA isn’t just about chasing higher returns — it’s about preserving the wealth you’ve worked so hard to build. Below are several compelling reasons why many TSP participants are making the move to precious metals:

Hedge Against Inflation

Inflation silently erodes purchasing power over time. While TSP funds like the G Fund or C Fund may offer some protection, they’re still tied to fiat currency and financial markets. Physical gold and silver, on the other hand, have historically held their value during inflationary periods.

Diversification

A well-diversified portfolio spreads risk across different asset classes. If your TSP is 100% invested in stocks and bonds, you're vulnerable to market downturns. Adding physical gold or silver through a self-directed IRA can act as a counterbalance during times of volatility.

Protection from Geopolitical and Economic Uncertainty

Precious metals tend to perform well during times of crisis—whether it's war, recession, or political instability. Gold is considered a “safe haven” asset, and demand often spikes when confidence in fiat currencies or central banks wanes.

Physical Ownership of a Tangible Asset

Unlike mutual funds or ETFs, a Gold IRA gives you the ability to own real, physical precious metals stored in a secure, IRS-approved depository. This offers peace of mind for many retirees who want something tangible backing part of their retirement.

Growing Interest Among Retirees

With rising national debt, ongoing market volatility, and concerns over the U.S. dollar’s long-term strength, more federal retirees are seeking hard assets as a buffer. A Gold IRA provides a compliant and tax-advantaged way to do just that.

Related: Best Silver IRA Companies (Ranked and Rated)

Can You Roll Over a TSP into a Gold IRA?

Yes, it is possible to roll over funds from your Thrift Savings Plan into a Gold or Silver IRA — but only under certain conditions. The IRS has specific rules governing rollovers, and understanding these requirements is key to making a smooth, penalty-free transfer.

Eligibility Requirements

Before initiating a rollover, you must meet at least one of the following criteria:

• You’ve separated from federal service (due to retirement or resignation)
• You’re age 59½ or older, even if you’re still working

If you meet either condition, you’re generally eligible to transfer all or part of your TSP into a self-directed IRA that allows for physical gold and silver investments.

Direct vs. Indirect Rollovers

There are two types of rollovers:

• Direct Rollover (Preferred): Funds move directly from the TSP to your new Gold IRA custodian. This method avoids any tax withholding and is the safest way to preserve your tax-deferred status.
• Indirect Rollover: You receive a check from the TSP and are responsible for depositing it into your Gold IRA within 60 days. The TSP will withhold 20% for taxes, which you’ll have to make up from other sources to avoid penalties.

Because of the risks and tax implications, a direct rollover is almost always the better option.

Tax Implications

If the rollover is done correctly (via direct transfer), there are no immediate taxes or penalties. Your funds remain within the retirement account system, maintaining their tax-deferred (or Roth) status.

However, if you take possession of the funds and miss the 60-day deadline—or don’t deposit the full amount—you could face income taxes and early withdrawal penalties.

Related: Gold IRA Tax Rules

Step-by-Step: How to Convert Your TSP to a Gold IRA

If you’ve decided to diversify your retirement savings with physical gold or silver, here’s how to roll over a portion of your Thrift Savings Plan into a Gold IRA — step by step.

Note: If the process seems complicated - it's not.

Speak with a precious metals dealer that specializes in Gold and Silver IRAs. These companies can hold your hand through the entire process - making it simple. 

1. Choose a Trusted Gold IRA Company

Reputable Gold IRA companies set up these precious metal accounts every day. They can help you:

• Review your plan and determine eligibility for a Gold IRA rollover
• Recommend a trusted custodian and IRA-eligible storage facility
• Fill out the paperwork and open a new self-directed IRA (SDIRA)
• Help select IRA-eligible precious metals
• Coordinate with your custodian and storage facility
• Execute the purchase of gold and silver

Look for a dealer with transparent pricing, no-pressure service, and strong customer reviews. 

Compare pricing and get as much common bullion bars and coins as you can for your dollar. Be cautious of companies pushing overpriced “exclusive” or collectible coins. 

Research companies and request more information from 2-3 top rated companies. 

2. Confirm Your Eligibility

Before starting the process, work with your Gold IRA dealer to verify that you qualify for a rollover. As mentioned earlier, you’ll need to be either:

• Separated from federal service, or
• At least 59½ years old if still employed

You can also contact TSP directly or check your online account to confirm your withdrawal options.

3. Open a Self-Directed IRA (SDIRA)

A traditional IRA won’t work — you’ll need to open a self-directed IRA through a custodian that allows physical precious metals. These custodians are specially licensed to handle non-traditional assets like gold, silver, and other IRS-approved metals.

The top Gold IRA companies typically recommend:

• Equity Trust
• The Entrust Group
• Strata Trust Company

Important: Not all IRA custodians handle precious metals, so choose one with experience in Gold IRAs. Your trusted Gold IRA company has already vetted the top self-directed IRA custodians and can make a recommendation.

Related: Request a Free Gold IRA Info Kit from GoldenCrest Metals 

4. Complete the TSP Rollover Request

Once your Gold IRA is open, initiate the rollover from your TSP account. This typically involves:

• Submitting Form TSP-70 (for full withdrawals) or TSP-77 (for partial withdrawals if separated)
• Or using Form TSP-75 if you’re age 59½ and still working

You’ll need to direct the funds to your new custodian’s IRA account. This should be done via direct rollover to avoid taxes and penalties.

Again, your Gold IRA company can help facilitate this and act as the liaison between custodians.

5. Select IRS-Approved Precious Metals

Once the funds arrive in your Gold IRA, you’ll choose which metals to buy. IRS rules limit your options to certain gold, silver, platinum, and palladium products.

Examples of approved gold products:

• American Gold Eagle coins
• Canadian Gold Maple Leaf coins
• Certain gold bars with a minimum 99.5% purity

Avoid numismatic or rare coins — they’re not allowed in IRAs and may carry inflated markups. Stick to bullion bars and coins that are recognized and valued world-wide.

Avoid sales pitches for 'exclusive' or low mintage coins that sell at ridiculously high markup. These coins pay higher commissions to the sales person - and will not perform better than common bullion over the long haul. 

6. Choose a Secure Depository

IRS rules require that all physical metals in an IRA be held in an approved depository, not at home. Your Gold IRA company will help you choose between options like:

• Delaware Depository
• Brinks Global Services
• IDS of Texas

These facilities are fully insured and meet federal standards for security and compliance.

7. Finalize the Purchase

With funds in place and metals selected, your Gold IRA company will:

• Lock in pricing based on current spot rates
• Execute the transaction on your behalf
• Coordinate delivery to the depository

At that point, your metals are officially held in your IRA under full custodial control — and your portfolio is now partially backed by real gold or silver.

Choosing the Right Gold IRA Company

Not all Gold IRA companies are created equal. Some offer transparent pricing and honest guidance, while others rely on high-pressure sales tactics and overpriced collectible coins that sometimes don’t even belong in your IRA.

Here’s what to look for when choosing the right Gold IRA company for your TSP rollover:

1. Transparent Pricing

A reputable company will clearly explain:

• The spot price of the metals
• The markup or commission they charge
• Any additional fees (like shipping, insurance, or IRA setup costs)

Avoid companies that hide their pricing. Get all costs for common bullion products in writing before deciding on a dealer.

2. No Pressure Sales Tactics

A trustworthy company educates — not pressures. If a representative tries to rush you, create false urgency, or push “rare” coins with vague claims of exclusivity, consider it a red flag.

3. Focus on IRA-Eligible Metals

Make sure the company specializes in IRS-approved bullion, not collectibles or “exclusive” coins that come with a steep markup and limited resale value. A solid provider will help you stay compliant and focused on long-term value.

4. Strong Customer Reviews

Check verified reviews on sites such as:

• Trustpilot
• Better Business Bureau (BBB)
• Google Reviews
• TrustLink

Pay attention to how the company responds to complaints — responsiveness is often as important as the rating itself.

5. Buyback Program

Some of the best Gold IRA companies offer guaranteed buybacks, giving you the option to sell your metals back at competitive rates when you're ready to liquidate. This can provide peace of mind and added liquidity.

6. Educational Support

Look for a company that helps you understand your options, not one that talks over your head. Whether it’s through free guides, webinars, or one-on-one consultations, good companies empower you to make informed decisions.

Bonus Tip: Avoid These Common Pitfalls

• Overpaying for “numismatic” or proof coins that aren’t IRA-eligible
• Working with firms that outsource customer service or fulfillment
• Ignoring custodial and storage fees that eat into long-term returns

Related: Request a Free Gold IRA Info Kit from GoldenCrest Metals 

Pros and Cons of Moving TSP to a Gold IRA

Before converting a portion of your TSP into a Gold IRA, it’s important to weigh the potential benefits and drawbacks. While many retirement savers appreciate the stability and diversification gold offers, there are trade-offs to consider.

Pros

Hedge Against Inflation

Gold and silver have historically preserved purchasing power during periods of inflation. Unlike fiat currencies, precious metals can’t be printed or devalued by central banks.

Diversification

Adding physical gold or silver to your retirement portfolio can reduce overall risk, especially if your TSP is heavily weighted in stock-based funds like the C, S, or I Fund.

Protection from Economic Uncertainty

In times of war, recession, or financial crisis, gold often outperforms traditional assets. Many see it as a safe haven when confidence in government or the dollar is low.

Tangible Asset in a Tax-Advantaged Account

With a Gold IRA, you gain physical ownership of a real asset—while still enjoying the tax-deferred or Roth benefits of an IRA.

Control Over Your Retirement Assets

Unlike TSP funds, which are limited to a handful of government-managed investment options, a self-directed IRA gives you full control over the types of assets you hold—including gold, silver, real estate, and more.

Cons

No Dividends or Interest

Precious metals don’t produce income like dividend-paying stocks or interest-bearing bonds. Their value comes from price appreciation and scarcity.

Storage and Custodial Fees

Unlike TSP or traditional IRAs that hold paper assets, a Gold IRA requires secure physical storage and an IRS-approved custodian—both of which come with annual fees.

Less Liquidity

Selling metals from an IRA takes more time than selling traditional assets. Your metals must be shipped, inspected, and processed by your custodian or dealer.

Price Volatility

Gold and silver prices can swing significantly in the short term. While they’re often stable over time, don’t expect consistent annual gains.

Bottom Line: A Gold IRA isn’t meant to replace your TSP or traditional investments — it’s designed to complement them.

By converting a portion of your TSP, you can hedge against inflation, diversify your holdings, and protect your savings without abandoning the core benefits of your existing retirement plan.

Get started with a free Gold IRA Kit from a top rated provider.

Common Questions About TSP to Gold IRA Rollovers

If you're considering moving a portion of your Thrift Savings Plan into a Gold IRA, you're not alone — and you're probably not without questions. Here are answers to some of the most frequently asked concerns from federal employees, military service members, and retirees.

Can I roll over my entire TSP into a Gold IRA?

Yes — if you’ve separated from service, you can roll over all or part of your TSP into a self-directed IRA. However, most people choose to convert only a portion to diversify without giving up the benefits of their existing TSP holdings.

Experts typically suggest holding no more than 5-15% of your retirement savings in precious metals. Consult with a Certified Financial Planner (CFP) to determine if (and how much) physical gold and silver makes sense for your situation. 

Can I roll over my TSP while I’m still working?

Only if you are 59½ or older. At that age, you may be eligible for an in-service withdrawal, allowing you to roll over funds into another qualified retirement account without triggering taxes or penalties.

Will I owe taxes on a TSP to Gold IRA rollover?

Not if you do a direct rollover. The funds move from your TSP directly into your self-directed IRA, maintaining their tax-advantaged status. If you take possession of the funds yourself (indirect rollover), it gets more complicated — and may involve withholding or penalties if mishandled.

What metals can I hold in a Gold IRA?

The IRS only allows approved bullion and coins that meet strict purity standards. Examples include:

• American Gold Eagles
• Canadian Gold Maple Leafs
• Silver American Eagles
• Certain gold and silver bars from approved refiners

Note that bullion bars typically sell at lower premiums than coins, so this may be the best route to get more metals for your dollar.

Rare coins, collectibles, and foreign coins that don’t meet purity requirements are not allowed.

How long does the process take?

From start to finish, most TSP-to-Gold IRA rollovers can be completed in 7–21 business days, depending on how quickly the TSP processes your withdrawal and your custodian sets up your new account.

Can I still contribute to my TSP after a partial rollover?

Yes. Rolling over part of your TSP doesn’t affect your ability to continue contributing to your TSP account, assuming you’re still employed and eligible.

What happens to my gold when I retire or want to cash out?

When you're ready to take distributions, you can:

• Sell your metals back to the dealer or through your custodian
• Take in-kind distributions (receive the physical metals directly), though this will trigger a taxable event

Work with your Gold IRA custodian to plan your exit strategy based on your retirement goals.

Getting Started

For many federal employees and retirees, the Thrift Savings Plan has served as a stable foundation for long-term retirement savings.

But in today’s unpredictable economic climate—marked by rising inflation, mounting national debt, and global instability—many are looking for additional layers of protection.

Converting a portion of your TSP into a Gold IRA offers a powerful way to diversify your retirement portfolio with physical assets that have stood the test of time.

Gold and silver aren’t subject to the same risks as stocks, bonds, or fiat currency—and when held inside a self-directed IRA, they enjoy the same tax benefits as traditional retirement accounts.

If you’re eligible and ready to take more control over your retirement, a Gold IRA could be a smart, defensive move. Just be sure to:

• Choose a trusted Gold IRA company
• Work with a qualified custodian
• Stick with IRS-approved metals
• And avoid the common traps like overpriced coins or vague fees

Your TSP helped get you here — now let gold and silver help secure the road ahead.