Federal Retirement · Gold IRA Rollovers
Bottom line up front
A TSP to Gold IRA rollover can be non-taxable at the time of the move when (1) you are separated from federal service or 59½ and older, (2) the TSP distribution is rollover-eligible, (3) you use a direct rollover from the TSP straight to a self-directed IRA custodian, and (4) traditional TSP money goes to a traditional self-directed IRA while Roth TSP money goes to a Roth self-directed IRA. Sending traditional TSP money to a Roth Gold IRA is a taxable Roth conversion — not a mistake you can easily undo.
The two ways federal employees lose money: taking a check payable to themselves (triggers mandatory 20% federal withholding plus a 60-day clock) and rolling out so much that they forfeit the G Fund and the plan-only early-distribution exceptions they may still need.
If you have been getting bombarded with TSP-to-gold ads aimed at federal employees, you are not crazy. The rules are real, and some of the companies behind them are legitimate. But the page that just sells you on the move is not the page you need. Below: whether you should do this at all, what the 20% trap costs at five common TSP balances, a side-by-side fee comparison, and the regulator history that explains why you are right to be careful.
Sources
| What | Source |
|---|---|
| TSP rollover mechanics and eligible distribution rules | TSPFS05, TSP Taking money from your account |
| Direct vs. indirect rollover and the 20% withholding rule | IRS Rollovers of Retirement Plan and IRA Distributions |
| IRS § 408(m) collectibles and the bullion exception | IRS Investments in Collectibles |
| Age-59½ in-service withdrawal rules | 5 CFR Part 1650, TSP In-Service Withdrawal Types |
| Plan-only early-distribution exceptions (Rule of 55, qualified public safety employees) | FINRA Notice 13-45, IRS Notice 2020-62 |
| RMD ages under SECURE 2.0 | TSP Taking money from your account, IRS Pub. 590-B |
| TSP Mutual Fund Window limits and fees | TSP Mutual Fund Window Fact Sheet (TSPFS28) |
| Self-directed IRA risks | SEC Investor.gov self-directed IRA alert |
| Precious metals retirement scam patterns | CFTC/FINRA/NASAA joint warning, March 2024 |
| SEC enforcement on misleading TSP rollover advice | SEC v. Federal Prep Advisors, Sept. 2024, File No. 3-22212 |
| Birch Gold and Goldco published fees and minimums | birchgold.com, goldco.com — verified May 2026 |
Find yourself first
| If this describes you | The honest answer |
|---|---|
| Retired or separated from federal service | A direct rollover may be available on any vested TSP balance. Worth comparing — read the fee section before signing. |
| Active federal employee, age 59½ or older | An age-59½ in-service withdrawal can fund a partial rollover. Confirm TSP eligibility first, then use a direct rollover. |
| Active federal employee, under 59½ | Generally no clean path. Wait until you separate or reach 59½. Hardship withdrawals exist under separate rules but are not rollover-eligible. |
| Separated, age 55–59½, may need withdrawals soon | Caution. Rolling to an IRA can forfeit the plan-only Rule of 55 on those funds. Read the 'What You Give Up' section below before deciding. |
| Qualified public safety employee (LEO, firefighter, ATC, CBP), age 50+ | Extra caution. Plan-based early-distribution exceptions do not carry over to IRAs. Most federal planners suggest keeping enough in TSP to bridge to 59½. |
| Mixed traditional and Roth TSP | Each source needs its own destination — traditional to a traditional IRA, Roth to a Roth IRA — or you will create an unintended taxable conversion. |
| Military member with tax-exempt contributions | Verify the receiving IRA accepts tax-exempt balances. If it will not, that portion may be paid directly to you instead of rolled over. |
| Outstanding TSP loan | Resolve it first. Per TSP guidance, unpaid TSP loan distributions are not rollover-eligible. |
Eligibility
Yes, eligible TSP distributions can be rolled into a self-directed IRA that holds IRS-approved precious metals.This is allowed under the same federal rules that let you roll a TSP into any other IRA — IRC § 402(c) and TSP regulations. The “Gold IRA” label is marketing; it is really just a self-directed IRA whose custodian is set up to hold physical bullion through the trustee/custodian possession structure the IRS requires.
What it is not: a way to buy physical gold insideyour TSP. The TSP does not allow that. What makes a TSP rollover different from a private-sector 401(k) rollover are the source-of-money rules (traditional vs. Roth vs. tax-exempt), the spousal-rights requirement for married FERS and uniformed-services participants, and the fact that the TSP is genuinely one of the cheapest retirement plans in existence — meaning your “after” picture needs to be worth giving that up.
If you are under 59½ and still working, you are mostly in the “not eligible” category. Most articles you have seen do not say this plainly.
TSP Mutual Fund Window
No. The TSP does not allow direct ownership of physical gold or any other precious metal. The core funds are G, F, C, S, I, and L. None hold bullion. The TSP Mutual Fund Window — added to give participants more choice — technically lets you buy gold-related mutual funds, but it is not the same as owning a physical coin or bar inside a tax-advantaged account.
Here is what the Mutual Fund Window actually is, since several Gold IRA articles misrepresent it:
You could use the window to buy a gold-mining or gold-tracking mutual fund. That is paper exposure to gold, not ownership of physical metal. If your goal is “I want a coin in a vault that is mine,” the Mutual Fund Window cannot do that. A rollover to a self-directed IRA is the only legitimate path. Anyone selling you a different story should be treated with suspicion.
Is this right for you?
Before we walk through the mechanics, let’s resolve the question most pages tiptoe around: is this even right for you?
Most people who land on this page are not actually choosing “all gold” vs. “all TSP.” The more defensible decision is a partial rollover — keeping the low-cost TSP core for stability and the G Fund, and rolling over only a portion. That preserves the parts of the TSP you cannot replace and gives you the physical-metals exposure the TSP cannot offer. The right percentage depends on your age, liquidity needs, tax status, and total retirement assets.
Decision point — eligibility
Confirmed you’re eligible and want a personalized rollover plan?
Take the free 60-second TSP rollover eligibility check →Not sure about allocation or want professional review? Match with a retirement advisor →
The biggest mistake
The single biggest mechanical mistake federal employees make on a TSP rollover is taking a check made out to themselves instead of having the TSP send funds directly to the new IRA custodian. The IRS requires a mandatory 20% federal income tax withholding on retirement plan distributions paid to the participant. You then have 60 days to deposit the full original amount — including the 20% you no longer have — into the new IRA. If you cannot replace that 20% from other money, the shortfall is a taxable distribution, plus a 10% early withdrawal penalty if you are under 59½.
This rule has nothing to do with gold. It applies to every retirement plan rollover. But it catches federal employees because the check that lands in your mailbox looks like rollover money. The IRS treats a check payable to you very differently from a direct rollover.
Initiate the rollover through TSP My Account or ThriftLine, confirm the receiving IRA’s destination information is on file (TSP rules require destination info to be on file for at least seven days before certain distributions are paid), and request a direct rollover payable to the receiving IRA custodian. Do not request a distribution payable to yourself. The IRS treats a direct rollover as a non-taxable transfer and you will get a Form 1099-R at year-end with a code marking it a rollover, not a distribution.
What an indirect rollover actually looks like
The check arrives in your mailbox. It is 80% of what you thought you were getting. You have 60 days to deposit 100% of the original gross amount into the new IRA. The 20% is being held against your tax bill — you will get it back at tax time if you successfully replaced it from other funds in time. Miss the deadline or the replacement, and the IRS treats the shortfall as a taxable distribution.
The IRS does grant 60-day waivers in narrow hardship situations through a self-certification process, but you do not want to rely on it.
| Amount you withdraw | 20% withheld | Check you receive | Outside cash needed | Penalty if under 59½ |
|---|---|---|---|---|
| $25,000 | $5,000 | $20,000 | $5,000 | $500 |
| $50,000 | $10,000 | $40,000 | $10,000 | $1,000 |
| $100,000 | $20,000 | $80,000 | $20,000 | $2,000 |
| $250,000 | $50,000 | $200,000 | $50,000 | $5,000 |
| $500,000 | $100,000 | $400,000 | $100,000 | $10,000 |
If you are a married FERS or uniformed-services participant, TSP spousal-rights rules may require spouse consent or waiver documentation — and in certain withdrawal situations, that consent requires a notarized signature. Check the current TSP withdrawal flow before submitting the rollover request. Surprise spouses are a top reason rollovers stall mid-process. Have the conversation first.
Decision point — the rollover mechanics
Ready to use a direct rollover and want a printable rollover checklist?
Take the free TSP rollover eligibility check (includes the checklist) →Need general rollover rules covering 401(k), 403(b), and IRA-to-IRA transfers too? See our complete Gold IRA Rollover Rules guide →
The math you need to see
The TSP is one of the cheapest retirement plans in the United States, with core fund expense ratios in the 0.035%–0.051% range as published on TSP.gov fund pages. A Gold IRA charges flat annual fees plus a one-time dealer spread on the metals. At smaller balances, the difference is substantial. At larger balances, it gets reasonable. You should see the math before you decide.
The TSP is genuinely a bargain. The C Fund listed a 0.035% total expense ratio as of 12/31/2025, and the S Fund listed 0.051% (TSP.gov C Fund page). On $100,000, that is $35 to $51 per year. Total. There is almost nothing cheaper anywhere in retirement investing.
A Gold IRA has more moving parts: a one-time setup fee, an annual custodian/admin fee, an annual storage fee, and a one-time dealer spread/premium over spot. Two providers that publish their fee structure clearly:
| Account balance | TSP C Fund @ 0.035% | TSP S Fund @ 0.051% | Gold IRA @ $225/yr flat | Gold IRA @ $235/yr flat |
|---|---|---|---|---|
| $25,000 | $8.75 | $12.75 | 0.90% | 0.94% |
| $50,000 | $17.50 | $25.50 | 0.45% | 0.47% |
| $100,000 | $35.00 | $51.00 | 0.225% | 0.235% |
| $250,000 | $87.50 | $127.50 | 0.09% | 0.094% |
| $500,000 | $175.00 | $255.00 | 0.045% | 0.047% |
1. Flat fees make Gold IRAs proportionally cheap at large balances and proportionally expensive at small ones. At $500,000 the fee is about the same as the TSP in percentage terms. At $25,000 it is roughly 25 times more expensive.
2. This table covers only recurring annual fees. It does not include the dealer spread on your initial metals purchase, which can be larger than years of annual fees combined.
3.“Free silver” and “first-year fees waived” promotions do not change the spread. That is where the real money lives. Make the dealer show it.
Print these out. Read them on the call.
If they get evasive on any of these, you have learned everything you need to know.
Decision point — the fee question
Want to compare verified Gold IRA companies side-by-side on fees, minimums, and TSP rollover support?
See our verified Gold IRA rollover companies comparison →The section other pages skip
There are three things you give up when TSP money becomes IRA money, and none of them can be restored by any Gold IRA company, no matter how good they are.
The G Fund is unique in American investing. It invests in short-term U.S. Treasury securities but earns a rate calculated using all U.S. Treasury securities with more than four years to maturity, with principal and interest guaranteed by the U.S. government. No mutual fund replicates this. No ETF replicates this. No private-sector account replicates this.
If you roll money out, that specific money leaves the G Fund forever. You may still be able to roll eligible money back into an open TSP account — TSP rules generally let separated participants keep a TSP account open with at least $200 vested. But if you take a total distribution and close the account, you lose the ability to move money back into the TSP at all.
FINRA confirms that the Rule of 55 (penalty-free withdrawals if you separate from service during or after the year you turn 55) applies only to employer-sponsored plans, not IRAs. If you retire at 56 and roll your entire TSP into a Gold IRA, you will need to wait until 59½ to access that money without the 10% penalty — or use a 72(t) substantially equal periodic payment plan, which locks you into a withdrawal schedule for at least five years.
For qualified public safety employees — law enforcement officers, firefighters, air traffic controllers, and certain CBP officers — a similar plan-based exception can apply after separation after reaching age 50, or after 25 years of service. That exception does not carry over to IRA distributions.
The fix: do not roll out everything if you are between 50 and 59½ and might need the money.
Active TSP participants can borrow against their balance under TSP loan rules. IRAs do not allow loans of any kind under IRS rules — there is no such thing as an “IRA loan.” If you are still working and might need to borrow against retirement savings, a partial rollover preserves loan eligibility on what remains.
The pivot — and why this is not a dealbreaker for most readers
A Gold IRA does NOT replicate the G Fund, restore plan-only early-distribution exceptions, or originate retirement-account loans. If those features are central to your plan, keep enough in the TSP to cover them. But because a Gold IRA skips those features, it can do something the TSP genuinely cannot — give you direct ownership of physical precious metals as a portfolio diversifier, held in your retirement account, with the same tax treatment as your other IRAs.
For a separated federal employee already past 59½, with a solid TSP balance to anchor stability and a modest allocation goal for physical metals, the Rule-of-55 question is moot and the G Fund question is one of allocation, not access. That is the reader for whom this move makes the most sense.
Decision point — the tradeoff
If those tradeoffs work for your situation, walk through the eligibility check to see your personalized rollover plan.
Use the free 60-second TSP rollover eligibility check →Tax routing
To keep your TSP rollover non-taxable, route traditional TSP money to a traditional IRA and Roth TSP money to a Roth IRA. Mixing them creates an unintended taxable Roth conversion. Military tax-exempt contributions need extra verification because not every receiving IRA accepts them.
This is one of the most overlooked sources of TSP rollover mistakes, and gold IRA salespeople almost never bring it up.
Traditional TSP → Traditional self-directed (Gold) IRA
Tax-deferred. No current tax. The money keeps its pre-tax character. This is the default path.
Roth TSP → Roth self-directed (Gold) IRA
Tax-free if the distribution is qualified. Keep Roth and traditional sources separate or you will have a tax mess.
Traditional TSP → Roth Gold IRA
This is a Roth conversion. It is taxable in the year you do it. You would owe ordinary income tax on the full amount converted. If a Gold IRA salesperson suggests this without a clear tax discussion, get a CPA involved before you sign anything.
Roth TSP → Roth Gold IRA — the five-year rule note
A Roth TSP-to-Roth IRA rollover can create five-year-rule issues if you have not already satisfied the Roth IRA holding period. IRS Publication 590-B distinguishes several five-year periods. If you are planning near-term Roth withdrawals, verify with a CPA before moving the money.
Active and retired military with tax-exempt contributions (typically combat-zone pay) face a specific issue: not every IRA will accept the tax-exempt source. Per TSPFS05, if the receiving plan or IRA will not accept tax-exempt balances, that portion may be paid directly to the participant — which creates separate tax-reporting issues you do not want to discover at the back end.
If you are military with tax-exempt contributions, ask your new IRA custodian in writing:
If the answer is “no” or “we do not know,” find a different custodian before initiating the rollover.
Step-by-step
Here is the clean process. Most “how-to” guides have you open the IRA before you have decided how much to roll over — that is backwards.
Most federal retirees do not roll over everything. Run the eligibility check, look at the fee table, factor in the G Fund and Rule-of-55 tradeoffs, and pick a number that fits your full retirement plan. The right percentage is not universal.
Traditional balance. Roth balance. Tax-exempt balance (military). Outstanding loan balance. Know each before you talk to a Gold IRA company.
Bottom line: written fee schedule, named custodian, named depository, IRA-eligible metals only, no high-pressure sales tactics, BBB and regulatory checks done before you sign.
Most reputable Gold IRA companies use a separate custodian — Equity Trust, STRATA, Kingdom Trust, or Preferred Trust are common. The custodian is the IRS-required entity that legally holds your account. The Gold IRA company is the dealer. Confirm in writing who is who and what each charges.
You will need: the custodian's full legal name, mailing address for the rollover check, your new account number, and the wording for the payee line. Get this in writing on letterhead or via official email.
Start the rollover through TSP My Account or ThriftLine. Confirm the receiving IRA destination is on file (TSP requires this for at least seven days before certain distributions are paid). Request a direct rollover payable to the receiving IRA. Do not request a distribution payable to yourself. If you are married, prepare for TSP's spousal-rights documentation requirements.
The TSP processes liquidation at the day's closing share prices and mails a U.S. Treasury check to the new custodian. Typical processing time is 2–4 weeks per multiple provider disclosures. Track it. If anything looks wrong on confirmation paperwork, raise it immediately.
Once the IRA is funded, the Gold IRA company will provide quotes for IRS-eligible metals. Do not authorize the purchase until you have: a line-item quote showing spot price and premium/spread separately; written confirmation that all metals are IRA-eligible under IRC § 408(m); written confirmation of the depository and storage type; and your buyback policy in writing.
Forms 1099-R and 5498 will show up at tax time. Every quote, fee schedule, purchase invoice, and storage agreement matters for tax reporting, future liquidation, and any dispute.
Decision point — ready to start the process
Ready to compare verified Gold IRA companies for a TSP rollover?
See our verified Gold IRA rollover companies comparison →IRS eligibility rules
The IRS allows your IRA to hold investment-grade bullion in coins or bars that meet specific purity standards and come from accredited refiners, with possession by a bank or approved non-bank trustee. Collectibles and home storage outside that possession structure are prohibited under IRC § 408(m). Buying a non-qualifying collectible through the IRA can be treated as a distribution equal to the cost to the account, with income tax owed plus a 10% additional tax if you are under 59½.
| Metal | Minimum purity | Note |
|---|---|---|
| Gold | 0.995+ (99.5%) | American Gold Eagle is a statutory exception at 22-karat |
| Silver | 0.999+ | American Silver Eagle meets this |
| Platinum | 0.9995+ | LBMA/COMEX-accredited bars |
| Palladium | 0.9995+ | LBMA/COMEX-accredited bars |
The CFTC, FINRA, and NASAA’s March 2024 joint warning flagged a specific pattern: salespeople pushing “semi-numismatic,” “rare,” “proof,” “graded,” “first-strike,” or “exclusive” coins as IRA-eligible. Eligibility depends on the exact coin and IRC § 408(m), but if a salesperson pushes these labels at you, treat it as a red flag. Do not buy unless the custodian confirms in writing that the exact product qualifies, and the quote separates spot price from markup.
The pattern to walk away from: pressure to “lock in pricing now,” urgency about “the law changing,” disparagement of banks or the dollar, and a pitch for “premium” coins. Every time.
Do not use a home-storage Gold IRA pitch without a tax attorney reviewing the structure.
IRS rules require IRA bullion to be held through the trustee/custodian possession structure. In McNulty v. Commissioner (2021), the U.S. Tax Court treated home possession of IRA gold coins through an LLC as a taxable distribution. Approved depositories — Delaware Depository, Brinks Global Services, International Depository Services (IDS) — are the compliant storage path.
Provider evaluation
Pick a Gold IRA company by what you can verify: written fee schedule, named custodian, IRA-eligible metals only, BBB profile, no high-pressure sales tactics, and clean searches on FINRA BrokerCheck and SEC IAPD.Skip companies that lead with celebrity endorsements, fear-based ads, or “limited-time” promotions on coins.
We maintain a dedicated verified Gold IRA rollover companies comparison updated quarterly with current fees, minimums, and provider details. Below are common starting points for TSP rollovers specifically — not a ranked recommendation. Re-verify all claims at quote stage.
Published $5,000 minimum and approximately $235/year in annual storage and maintenance fees per their fee page. Useful for smaller or partial rollovers. BBB Accredited with A+ rating as of May 21, 2026.
Generally requires $25,000 with a $225 annual-fee example after the first year per their cost page. First-year fees can run higher than that ongoing example. BBB A+ as of May 21, 2026.
Published $10,000 Gold IRA minimum per their FAQ page. BBB A+ as of May 21, 2026.
BBB A+ as of May 21, 2026. Noble’s intake flow lists TSP as a funding source. Current minimum and any TSP-specific kit material should be re-verified directly with Noble before signing.
Published $50,000 minimum per Augusta’s own pages. BBB Accredited as of May 21, 2026 — verify current status before signing. Education-director-led process; worth a look for high-balance rollovers.
In September 2024, the SEC charged Federal Prep Advisors, Inc. and its principal Michael Kerper with providing TSP rollover information that was inaccurate or omitted material facts. According to the SEC’s order, the firm willfully violated the Investment Advisers Act. The case specifically involved a registered investment adviser providing federal employees with misleading TSP fee comparisons and IRA money-manager fee information to push them toward rollovers.
Not every “federal retirement specialist” or “federal benefits advisor” is what they claim. The SEC and FINRA databases above let you verify in two minutes. Use them.
After the rollover
Even with a perfect rollover, three things can erode the value of your decision over time. Knowing them now lets you plan around them.
When you eventually liquidate metals — whether to take an RMD, rebalance, or move funds — you will pay a sell-side spread. With reputable dealers this is typically lower than the buy-side spread, but it is still a transaction cost the TSP does not have.
Traditional Gold IRAs are subject to required minimum distributions. Under SECURE 2.0 and current law:
| Birth year | RMD beginning age | Gold IRA planning question |
|---|---|---|
| Before 1960 | 73 | How do you handle the RMD — cash liquidation, or in-kind distribution of metals? |
| 1960 or later | 75 | Same question, with extra runway to plan in-kind vs. cash. |
With physical metals, RMDs become a logistical decision: cash liquidation (custodian sells the required amount and distributes cash) or in-kind distribution (you take physical possession of the equivalent value of metals, which then becomes a taxable distribution at fair market value). Plan ahead.
The SEC Investor.gov self-directed IRA alert warns that self-directed IRA custodians generally hold and administer assets but do not evaluate the quality or legitimacy of the underlying investment. The custodian’s involvement is not a stamp of approval for what you bought. The compliance check on the metals — purity, eligibility, source — is on you and your dealer.
Real examples
Eligibility: Full rollover available (separated, over 59½). The test: Compare keeping the full TSP balance against a partial rollover at several percentages, including fee drag and loss of TSP-specific features. At this balance, Augusta and Goldco meet published minimums. Decision Resolution Points cleared: eligibility confirmed, age confirmed, manageable fee drag at this balance, no Rule-of-55 issue.
Eligibility: Not currently eligible (under 59½, still working). At separation at 58 — eligible for full rollover but would lose Rule-of-55 access on any rolled funds. If you will need TSP income between 58 and 59½, rolling out forfeits that plan-only exception. Consider waiting until 59½ or comparing gold-price exposure through a gold ETF in a separate IRA before deciding on a Gold IRA.
Eligibility: Full rollover available, but tax-exempt source requires special handling. Verify the receiving custodian accepts tax-exempt balances in writing. If yes, route each source properly. If no, you need a different custodian or the tax-exempt portion gets paid directly to you, creating separate tax-reporting issues.
Eligibility: Has plan-based early-distribution access on TSP funds; rolling to an IRA forfeits this on the rolled funds. Most planners would have this reader keep enough in the TSP to bridge to 59½ to preserve that plan-only exception. A small Gold IRA rollover for diversification — recognizing the rolled funds become 59½-restricted — is a separate question.
Eligibility: Full rollover available. At $18,000, a $225/year flat fee is 1.25% — meaningfully more than even an expensive mutual fund. A gold ETF such as GLDM at 0.10% or IAUM at 0.09% is an alternative to compare for gold-price exposure without Gold IRA flat custody/storage fees. Different product, different goal — but the cost math may favor the ETF at this balance.
Frequently asked questions
Final word
A TSP to Gold IRA rollover, done right, is a legitimate retirement planning move for the right person. Done wrong — wrong type, wrong age, wrong provider, wrong storage — it can cost you taxes, penalties, and tens of thousands in spread that do not come back.
If after reading this you have decided this is not your right move, we would actually consider that a win — better a bookmarked page than a regretted rollover.
What to do next
Still figuring out whether you are eligible or how much to roll over?
Free. Built for federal employees, military, and TSP retirees. No email required. Tells you your eligibility path, the 20% withholding risk on your balance, and your fee drag estimate.
Take the free 60-second eligibility check →Want to compare verified Gold IRA companies side-by-side?
Current fees, minimums, BBB profiles, and TSP rollover support — all in one table, updated quarterly.
See the Gold IRA rollover companies comparison →Need general rollover rules covering 401(k), 403(b), or IRA-to-IRA transfers?
Read the complete Gold IRA Rollover Rules guide →Want a personalized retirement action plan first?
Free to be matched, no obligation. Verify any professional’s registration, capacity, compensation, and Form CRS/ADV before relying on advice.
Match with a retirement advisor →