TSP to Gold IRA Rollover: How It Works + Best Companies 2026

Can You Roll Over a TSP to a Gold IRA? (Eligibility Rules)

Yes — but only under specific IRS conditions: separation from federal service, age 59½+, or total and permanent disability. Active federal employees under 59½ are generally ineligible.

Federal employees cannot buy physical gold inside the TSP — the plan restricts holdings to five paper index funds (G, F, C, S, I) and lifecycle L Funds. The Federal Retirement Thrift Investment Board (FRTIB) administers the TSP — the world’s largest defined-contribution plan — which manages over $800 billion in assets for approximately 6.5 million federal employees and military personnel as of 2024. The TSP menu offers no commodity exposure, no inflation-linked alternatives beyond the G Fund’s government securities, and no self-directed options.

Federal employees roll TSP funds into a Gold IRA to add inflation-linked hard assets that the TSP’s five-fund menu cannot hold. Both FERS (Federal Employees Retirement System) and CSRS (Civil Service Retirement System) participants qualify when they meet one of the rollover conditions above; spousal consent under ERISA §417 applies to married participants electing a non-survivor distribution.

TSP Rollover Eligibility Summary

• Separated from federal service (retirement, resignation, or termination) — full rollover of entire TSP balance permitted
• Age 59½+ while still employed — age-based in-service withdrawal via Form TSP-75, rollable to a Gold IRA
• Total and permanent disability — eligible for withdrawal and rollover
• Active employee under 59½ — financial hardship withdrawals available but cannot be rolled over to an IRA

IRS Rules for Gold in an IRA (Approved Metals & Storage)

The IRS permits only specific coins and bars meeting minimum fineness standards, held at approved depositories — home storage is a prohibited transaction triggering immediate distribution, taxes, and a 10% penalty if you are under 59½.

IRS-Approved Precious Metals (Fineness Requirements)

• Gold bars and rounds: must be ≥ .9999 fine (99.99% purity)
• American Gold Eagle coins: .9167 fine (91.67%) — specifically exempted by the IRS despite lower purity
• American Gold Buffalo: .9999 fine — the only 24-karat U.S. gold coin
• Canadian Gold Maple Leaf: .9999 fine
• Australian Gold Kangaroo: .9999 fine
• Austrian Philharmonic: .9999 fine
• Silver: must be ≥ .999 fine (American Silver Eagle, Canadian Silver Maple Leaf)
• Platinum: must be ≥ .9995 fine

Not permitted: Numismatic (collectible) coins, pre-1933 gold coins, jewelry, and any metals below IRS fineness thresholds. Purchasing ineligible products inside an IRA creates a prohibited transaction.

IRS-Approved Storage (Depositories)

The IRS requires IRA-owned gold to sit in an approved, insured depository — investors who store it at home, in a personal safe, or in a safe deposit box trigger a prohibited transaction under IRC §408(m). The Tax Court confirmed this rule in McNulty v. Commissioner, 157 T.C. No. 10 (2021), taxing the entire account balance plus a 10% penalty. Leading IRS-approved depositories include:

• Delaware Depository (Wilmington, DE) — the most widely used facility among Gold IRA custodians
• Brinks Global Services — international vault network with U.S. facilities
• International Depository Services (IDS) — facilities in Delaware and Texas

When choosing a depository, confirm whether your provider offers allocated/segregated storage (your bars stored separately, identifiable by serial number and meeting LBMA Good Delivery chain-of-custody standards) or unallocated/commingled storage (pooled with other investors’ holdings). Allocated storage typically costs $50–$150/year more but guarantees you receive your exact bars upon distribution. Note that depositories are private vaults and are not FDIC insured; coverage comes from private all-risk policies underwritten by Lloyd’s of London or comparable carriers.

How TSP to Gold IRA Rollovers Work (Step-by-Step Process)

TSP to Gold IRA rollovers work in one of two IRS-recognized ways under IRC §402(c): a direct (trustee-to-trustee) transfer or a 60-day indirect rollover. The direct path eliminates the mandatory 20% federal withholding because the participant never takes constructive receipt of the funds.

Step 1: Verify Eligibility (Most Critical Step)

The TSP only permits rollovers in specific circumstances: separation from federal service (retirement, resignation, or termination), reaching age 59½ while still employed (in-service withdrawal), or total and permanent disability. Active federal employees under 59½ generally cannot roll over TSP funds. Confirm your eligibility with TSP.gov or your HR office before opening any Gold IRA account.

Step 2: Open a Self-Directed IRA (SDIRA) with an IRS-Approved Custodian

A standard IRA cannot hold physical gold. Investors open a self-directed IRA (SDIRA) with a custodian authorized to hold alternative assets — common SDIRA custodians include Equity Trust, GoldStar Trust, and Kingdom Trust. Setup typically takes 1–2 business days. Expect setup fees ranging from $50–$150 and annual custodian fees of $75–$300.

Step 3: Initiate a Direct (Trustee-to-Trustee) Transfer via Form TSP-70 or TSP-75

A direct rollover (trustee-to-trustee transfer) means the TSP sends funds directly to your new SDIRA custodian — you never receive a check. This avoids the mandatory 20% federal tax withholding that applies to indirect rollovers. File Form TSP-70 (full withdrawal after separation) or Form TSP-75 (age-based in-service withdrawal) directly with the TSP, naming your new custodian as the recipient. Processing takes 7–10 business days. The TSP issues Form 1099-R (Code G for direct rollover) in January of the following tax year; your new custodian issues Form 5498 confirming receipt by May 31. Traditional TSP balances roll into a Traditional Gold IRA tax-free; Roth TSP contributions and earnings roll into a Roth Gold IRA tax-free, subject to the 5-year rule under IRC §408A(d)(2). Outstanding TSP loans become a loan offset at separation — the offset amount is treated as a taxable distribution unless rolled over by the federal tax filing deadline (including extensions).

Warning about indirect rollovers: If you take personal receipt of the funds (indirect/60-day rollover), the TSP withholds 20% for federal taxes automatically. You must deposit the full original amount — including replacing the 20% from personal funds — into the Gold IRA within 60 calendar days or the shortfall becomes a taxable distribution subject to income tax plus a 10% early withdrawal penalty if you are under 59½.

Step 4: Purchase IRS-Approved Precious Metals

Once funds arrive at your SDIRA custodian, your Gold IRA specialist helps you select eligible metals.The IRS restricts Gold IRA holdings to bullion coins and bars meeting minimum fineness standards (.9999 for most gold; the American Gold Eagle at .9167 is specifically exempted). Numismatic (collectible) coins are not IRS-eligible. Your custodian places the purchase order on your behalf.

Step 5: Arrange IRS-Compliant Depository Storage

The IRS requires IRA-owned gold to sit in an approved depository — investors who store it at home trigger a prohibited transaction under IRC §408(m). The Tax Court reinforced this rule in McNulty v. Commissioner, 157 T.C. No. 10 (2021), treating home-stored IRA bullion as a fully taxable distribution plus a 10% penalty. Approved depositories include the Delaware Depository, Brinks Global Services, and International Depository Services (IDS). Bars must meet LBMA Good Delivery standards or equivalent IRA fineness rules. Confirm whether your provider offers allocated/segregated storage (your specific bars identified by serial number) versus unallocated/commingled storage (pooled inventory). Annual storage fees typically range from $100–$300 depending on holdings.

Timeline Summary

• Open SDIRA account: 1–2 business days
• Submit TSP-70/TSP-75 form: 1–2 business days
• TSP processes withdrawal: 7–10 business days
• Purchase metals + delivery to depository: 3–5 business days
• Total: approximately 2–4 weeks from start to finish

Best TSP to Gold IRA Companies (2026 Rankings)

Augusta Precious Metals ranks #1 for lifetime customer support and price-match guarantee; Goldco leads for buyback program value; American Hartford Gold offers the lowest minimum at $10,000.

We evaluated 14 Gold IRA companies on minimum investment, fee transparency (setup fees, annual storage fees, custodian fees), IRS-compliant storage options, buyback programs, BBB rating, and verified customer reviews across Trustpilot, Google, and ConsumerAffairs. The five companies below met all criteria and are listed in order of our overall ranking score. All five maintain an A+ BBB rating and offer direct trustee-to-trustee TSP transfers.

Scroll up to view the full comparison table, or click “Read Review” for detailed individual analysis.

Common TSP Rollover Mistakes (and How to Avoid Them)

The #1 mistake is taking an indirect rollover (check made out to you) — the TSP withholds 20% automatically, and you must replace those funds within 60 days or owe taxes + a 10% penalty on the shortfall.

• Indirect rollover instead of direct transfer: When you take personal receipt of TSP funds, the TSP withholds 20% for federal taxes. You must deposit the full original amount into the Gold IRA within 60 calendar days — including replacing the 20% from personal funds — or face income tax plus a 10% early withdrawal penalty on the shortfall. Solution: Always use a direct (trustee-to-trustee) transfer via Form TSP-70 or TSP-75.
• Purchasing non-IRS-approved metals: Numismatic (collectible) coins, pre-1933 coins, and metals below IRS fineness thresholds (.9999 for gold bars, .999 for silver) are prohibited transactions inside an IRA. Purchasing them triggers immediate distribution treatment. Solution: Only buy IRS-approved bullion coins (American Gold Eagle, Gold Buffalo, Canadian Maple Leaf) and bars from your custodian’s approved list.
• Home storage “IRA” schemes: Despite aggressive marketing, storing IRA gold at home, in a personal safe, or in a safe deposit box violates IRC Section 408(m). The IRS treats home-stored metals as an immediate distribution — you owe income tax plus the 10% penalty. Solution: Use an IRS-approved depository (Delaware Depository, Brinks, IDS).
• Ignoring fee structures: Gold IRA fees include setup fees ($50–$150), annual custodian fees ($75–$300), and annual storage fees ($100–$300). These are significantly higher than the TSP’s expense ratios (0.043% in 2024). Solution: Request a complete fee schedule from every company before opening an account; compare apples to apples.
• Over-concentrating in gold: Converting 100% of your TSP to gold eliminates equity growth exposure and dividend income. Gold generates no yield. Solution: Most financial planners recommend 5–15% precious metals allocation within a diversified retirement portfolio.
• Missing the 60-day deadline: If you do use an indirect rollover, the 60-day clock starts when you receive the check — not when it clears. Missing this deadline by even one day converts the entire amount to a taxable distribution. Solution: Use direct transfer; if you must go indirect, deposit immediately.

Gold Price Volatility: What TSP Holders Should Expect

Gold dropped 45% from its 2011 peak ($1,895/oz) to its 2015 low ($1,050/oz) and fell 20% in 2022 — TSP holders rolling over must plan for multi-year drawdowns and not treat gold as a short-term inflation hedge.

Gold is a non-yielding asset: unlike the TSP’s G Fund (which pays interest) or C Fund (which tracks dividend-paying S&P 500 stocks), physical gold generates zero income while you hold it.Your return comes entirely from price appreciation.

Historical context:

• 1973–1980 (high inflation): Gold rose from ~$65/oz to ~$675/oz (+938%, a CAGR of approximately 34%) while the U.S. dollar lost approximately 50% of its purchasing power
• 2001–2011 (secular bull market): Gold climbed from $271/oz to $1,895/oz (+599%), outperforming the S&P 500 over the same period
• 2011–2015 (bear market): Gold fell 45% from peak to trough while the S&P 500 gained 80%
• 2020–present: Gold surpassed $2,000/oz for the first time in August 2020, driven by pandemic-era monetary expansion and inflation

Gold’s correlation coefficient with the S&P 500 has averaged approximately 0.0–0.1 over the past 30 years, making it a genuinely non-correlated asset. This low correlation is precisely why adding a modest gold allocation (5–15%) can reduce overall portfolio volatility without proportionally reducing returns. Source: World Gold Council, U.S. Bureau of Labor Statistics.

How Much of Your TSP Should You Convert to Gold?

Most financial planners suggest 5–15% gold allocation for retirement portfolios; converting more than 20% of your TSP introduces concentration risk in a non-yielding asset.

The right allocation depends on your time horizon, risk tolerance, other retirement income (FERS annuity, Social Security), and your TSP balance. Consider these guidelines:

• Conservative (5–10%): Provides inflation hedging and portfolio diversification without significantly reducing equity growth potential. Suitable for most TSP holders 5–15 years from retirement.
• Moderate (10–15%): Meaningful precious metals exposure for investors concerned about inflation, currency debasement, or geopolitical risk. Common among retirees seeking wealth preservation over growth.
• Aggressive (15–20%): Higher allocation for investors with strong conviction about economic uncertainty. Be aware that gold generates no dividends or interest — this allocation sacrifices income for potential crisis protection.
• Over 20% (caution): Most advisors discourage allocating more than 20% to precious metals. Gold is illiquid compared to TSP funds, carries higher holding costs ($150–$300/year in storage and custodian fees), and its long-term return has historically lagged equities.

Remember: required minimum distributions (RMDs) apply to Gold IRAs just as they do to traditional IRAs. Starting at age 73 (under SECURE Act 2.0), you must take annual distributions — which means selling metals or taking an in-kind distribution. Factor RMD liquidity needs into your allocation decision.

TSP vs Gold IRA: Core Fund Comparison

The TSP’s G/C/S/I Funds offer low-cost index exposure at 0.043% expense ratio; a Gold IRA trades that low cost for inflation protection and non-correlation — the tradeoff is higher annual fees ($150–$300/yr) and no dividend income.

The TSP’s ultra-low 0.043% expense ratio (as of 2024) is the lowest of any retirement plan in the U.S. A Gold IRA costs substantially more to maintain. The value proposition is not cost — it is asset class diversification. Many financial advisors recommend holding both: keep the majority of retirement assets in TSP for low-cost equity and bond exposure, and allocate a modest 5–15% to physical gold via a Gold IRA for inflation hedging and crisis protection.

Downsides of a Gold IRA: What Federal Employees Should Know

Gold IRAs cost $200–$450/year in combined fees vs. the TSP’s near-zero 0.043% expense ratio, generate no dividends or interest income, and restrict physical storage to IRS-approved depositories under IRC §408(m).

1. Fee Drag Is Significant

The TSP’s blended expense ratio of 0.043% is one of the lowest of any retirement vehicle in the world. A Gold IRA typically costs $150–$300/year in depository storage fees plus $50–$150/year in custodian maintenance fees, totaling $200–$450/year regardless of account size. On a $100,000 rollover, that represents a 0.20%–0.45% annual fee load — 5x to 12x the TSP’s cost. The annual custodian fee, setup fee, and storage fee combined far exceed the TSP’s cost at every balance level.

2. No Income Generation

Gold pays no dividends or interest. All return depends on price appreciation alone. By contrast, the TSP’s C Fund has returned an average of ~10.9% annually over the past 20 years (dividends reinvested), and the G Fund pays 2–5% interest with zero principal loss risk. Gold’s inflation-adjusted return (real rate of return) over the long term has averaged approximately 1–2% annually.

3. IRS Storage Restrictions Under IRC §408(m)

Gold IRA bullion cannot be stored at home or in a personal safe-deposit box — it must be held by an IRS-approved depository. Violations trigger the entire account balance being treated as a taxable distribution, plus a 10% early withdrawal penalty if under 59½. This is a prohibited transaction under IRC §408(m) with no cure provision.

4. Liquidity Constraints and Bid-Ask Spread

Selling physical gold from a Gold IRA involves the bid-ask spread — the difference between what a dealer pays you (bid) and what they charge you (ask). This spread typically runs 3–8%, meaning you may lose value on every buy-sell cycle. TSP funds trade at net asset value with zero spread.

5. Required Minimum Distribution Complications

Required Minimum Distributions (RMDs) starting at age 73 under SECURE Act 2.0 apply to Gold IRAs. You must either sell metals to generate cash for your RMD or take an in-kind distribution of physical gold — which triggers a taxable event at the gold spot price on the distribution date.

What $10,000 Invested in Gold 20 Years Ago Would Be Worth Today

$10,000 invested in gold in April 2006 at a gold spot price of ~$600/oz would be worth approximately $53,000 in April 2026 at ~$3,200/oz, representing a ~430% gain and a 20-year CAGR of approximately 8.8%. The TSP C Fund returned ~10.5% CAGR over the same period.

Sources: World Gold Council gold price data, TSP.gov fund performance, BLS CPI-U. Past performance does not guarantee future results. Gold’s 20-year performance includes a gold bull market (2001–2011) and a gold bear market (2011–2015, down 45%).

Gold outperformed inflation and the G Fund over 20 years but underperformed the C Fund’s equity returns. Gold’s value in a portfolio allocation is not replacing stocks but providing non-correlated diversification that can reduce overall portfolio volatility during economic downturns.

TSP Mutual Fund Window: Access Gold Without Leaving Federal Service

Active federal employees under 59½ can access gold ETF exposure inside the TSP via the Mutual Fund Window — without triggering a taxable distribution or leaving federal service.

The TSP Mutual Fund Window allows participants to invest in approved mutual funds outside the five TSP core funds (G, F, C, S, I) and L Funds. Launched in June 2022, the window provides access to thousands of funds through Alight Financial Solutions, including gold-focused ETFs and precious metals mutual funds.

How the TSP Mutual Fund Window Works

• Eligibility: All TSP participants with at least $40,000 in their account
• Access: Up to 25% of your total TSP balance can be invested through the window
• Gold exposure options: Gold ETFs (such as SPDR Gold Shares / GLD or iShares Gold Trust / IAU) and precious metals mutual funds
• Fees: $95/year administrative fee + $28.75 per fund per trade + underlying fund expense ratios
• Key limitation: The window holds paper gold (ETF shares), not physical gold bullion — no direct ownership of tangible assets

Mutual Fund Window vs. Gold IRA Comparison

For active federal employees under 59½ who want gold exposure without separating from service, the TSP Mutual Fund Window is the only in-service option. For direct ownership of physical gold bullion with zero counterparty risk, a Gold IRA via direct rollover after separation remains the preferred path.