The short answer: The Thrift Savings Plan cannot hold physical gold, but you can move TSP money into a gold IRA. You can do it after you leave federal service, or while still working once you are 59 and a half, using up to four age-based in-service withdrawals per year. Use a direct transfer so there is no tax and no 20% withholding, move traditional TSP money to a traditional gold IRA and Roth TSP money to a Roth gold IRA, and think hard before giving up the TSP’s very low costs and its G Fund.
Can you buy gold in the TSP?
No. The TSP offers the G, F, C, S and I Funds, lifecycle L Funds, and a mutual fund window. None of them hold physical gold. To own IRS-approved bullion with retirement money, you have to move some of your TSP balance into a self-directed gold IRA.
When can you move TSP money into a gold IRA?
| Your situation | Can you move money? | Notes |
|---|---|---|
| Separated or retired from federal service | Yes, all or part | Partial withdrawals are allowed; you can leave the rest in the TSP |
| Still working, age 59 and a half or older | Yes | Up to four age-based in-service withdrawals per calendar year |
| Still working, under 59 and a half | Generally no | Financial hardship withdrawals cannot be rolled over |
If you are married, the TSP may require your spouse’s consent or notice depending on your retirement system. Check your options in your TSP account before you start.
How does a TSP to gold IRA transfer work?
- Open a self-directed gold IRA with a custodian that holds precious metals. Match the account type: traditional for traditional TSP money, Roth for Roth TSP money.
- Get the new custodian’s transfer details, such as the account number and the payee name for the check or transfer.
- Request the withdrawal from the TSP online through your TSP account, choosing a transfer to an IRA rather than a payment to you.
- Wait for processing. Allow roughly one to two weeks after the TSP receives complete paperwork, plus time for the custodian to post the money.
- Buy metal once the cash is in the gold IRA, with the premium in writing.
- Confirm delivery to the depository on your custodian statement.
If the TSP pays the money to you instead, it withholds 20% for federal taxes, and you have 60 days to deposit the full amount, including the withheld 20% from other savings, to avoid taxes. A direct transfer avoids all of that. Our rollover guide covers the rules in more detail.
What do you give up by leaving the TSP?
- Very low costs. TSP administrative expenses are among the lowest of any retirement plan. A gold IRA has setup, custodian and storage fees plus dealer premiums.
- The G Fund. It is only available inside the TSP and cannot lose principal. Money moved out cannot come back to the G Fund unless you roll it back into the TSP.
- The rule of 55. If you separate in or after the year you turn 55 (50 for certain public safety employees), TSP withdrawals avoid the 10% early penalty. That exception does not carry over to IRA money.
Because of this, many federal employees move only part of their TSP into gold and leave the rest invested in the TSP. Use our fee and markup calculator to see what a gold IRA would cost compared with leaving money in the TSP.
How much of your TSP should go into gold?
There is no official number. Many planners who use gold suggest roughly 5% to 10% of total retirement savings. Gold pays no income, can fall for years, and dropped 28% in 2013. Be wary of anyone who urges you to move your entire TSP. Federal retirees with large balances are frequent targets of high-pressure gold sales. See our gold IRA scams guide.
What about Roth TSP money?
Roth TSP balances can move by direct rollover into a Roth gold IRA and keep their Roth status. Qualified withdrawals, including gold gains, are then tax-free, and Roth IRAs have no RMDs for the original owner. Read our Roth gold IRA guide.
Frequently asked questions
Can I roll my TSP into a gold IRA?
Yes. After you leave federal service, or while working once you are 59 and a half, you can transfer TSP money into a self-directed gold IRA.
Can I buy gold inside the TSP?
No. The TSP funds do not hold physical gold. You need a self-directed gold IRA to own IRS-approved bullion with retirement money.
How many in-service withdrawals can I take from the TSP?
Participants 59 and a half or older can take up to four age-based in-service withdrawals per calendar year.
Is a TSP to gold IRA transfer taxable?
Not if you do a direct transfer from traditional TSP to a traditional IRA, or Roth TSP to a Roth IRA. If the money is paid to you, 20% is withheld and the 60-day rule applies.
What do I lose by moving TSP money to a gold IRA?
You give up the TSP's very low costs and access to the G Fund for that money, and the rule of 55 penalty exception does not apply to IRA withdrawals.
Should I move my whole TSP into gold?
Usually not. Gold pays no income and can fall for years. Many people move only a modest share and leave the rest in the TSP.
Sources: TSP bulletin on age-based in-service withdrawals, TSP.gov, IRS on rollovers. Confirm current TSP rules in your account before acting. General education, not financial advice.