TSP to Gold IRA Rollover: Step-by-Step Guide

A TSP to gold IRA rollover moves federal retirement savings out of the Thrift Savings Plan and into a self-directed IRA holding physical gold. The catch: while you are still working, the TSP will not release most of your balance — the door opens after separation from service, or at 59½ within in-service limits. This guide covers the TSP’s rules, the exact forms, the pro-rata Roth trap, and a realistic step-by-step for moving thrift savings plan money into metals.

What Is the TSP and Why Can’t You Roll It Over While Employed?

The Thrift Savings Plan is the federal government’s version of a 401(k): employee deferrals, matching contributions for most FERS participants, and a menu of five index funds — the G, F, C, S, and I funds — known for expense ratios almost no private plan matches. Like any employer plan, it offers no physical-gold option, so the only route to metals is a rollover into a self-directed IRA. And the TSP gates access harder than most plans. In-service withdrawals exist in two forms: age-based withdrawals at 59½ or older (form TSP-75), which can be rolled over, and financial hardship withdrawals, which are taxable and cannot. Everyone else waits for separation from service, at which point the full balance is freely available — retiring, resigning, or being separated all open the same door, and the TSP processes these under its own timelines. Active-duty considerations differ for uniformed service members, so check tsp.gov’s separation guidance for that case.

Who Can Move TSP Money Right Now?

The one widespread misconception this table corrects: separation does not mean retirement. Resigning at 45 for a private-sector job makes the entire balance rollable immediately — no age requirement attaches once you are out.

Step-by-Step: TSP to Gold IRA After Separation

1. Open a self-directed gold IRA. Choose a custodian that handles physical metals and has experience receiving TSP transfers; our gold IRA custodians guide lists the comparison points.
2. File the right TSP form. TSP-70 for a full withdrawal or TSP-77 for a partial one, electing a direct transfer (rollover) to your new IRA. Paper forms go by mail; the TSP’s processing times are published on tsp.gov and typically run in the range of one to two weeks once your form is complete — plus mailing time on both ends.
3. Let the check go to the custodian. The payment is issued to the IRA custodian for your benefit, which keeps withholding, the 60-day rule, and the once-per-year rollover limit out of the picture entirely. The shared mechanics are in the gold IRA rollover hub.
4. Buy IRS-approved metals. Once funds land, the IRA purchases bullion meeting IRS fineness standards; our IRA-approved metals guide covers what qualifies.
5. Vault the metals. Insured delivery to an approved depository, then an allocation statement confirming what your IRA holds.

One historical note worth knowing: partial withdrawals after separation used to be a one-time event, but rules modernized in 2019 now allow multiple partial withdrawals — so a staged move into metals is possible, not just a single all-or-nothing transfer.

Traditional vs. Roth TSP: Where the Taxes Go

The TSP pays mixed balances pro rata — every withdrawal contains a proportional slice of traditional (pre-tax) and Roth money, and you cannot direct the split. That produces the detail most federal employees miss: a rollover of a mixed balance generally arrives as two payments, the pre-tax slice going to a traditional gold IRA and the Roth slice to a Gold Roth IRA (that account’s rules are in our Gold Roth IRA guide). The traditional portion rolls over tax-free as always. The Roth portion keeps its tax shelter by rolling to a Roth IRA, but its earnings escape tax only if you are 59½ or older and five years have passed since January 1 of the year of your first Roth TSP contribution — otherwise the earnings slice is taxable. Check your most recent TSP statement for the exact split before scheduling purchases.

G Fund vs. Gold: What You Give Up

Honesty requires naming the trade. The G Fund pays interest backed by the U.S. Treasury with no principal risk — a guarantee that exists nowhere in the metals world — and the whole TSP runs on expense ratios measured in hundredths of a percent. Gold offers none of that: no yield, real price volatility, and, in a gold IRA, custodian and storage fees plus dealer premiums. What it offers instead is a tangible asset outside the paper-asset system and a historical (not guaranteed) tendency to hold value through inflation and currency stress. Both sides of that ledger are laid out in our gold IRA pros and cons guide — read it before deciding what share of a TSP, if any, should move.

What It Costs

Moving TSP money replaces a nearly free account with a fee-bearing one: a one-time setup charge, annual custodian and administration fees, depository storage, and the dealer’s premium over spot — usually the biggest first-year item. Against a modest balance those costs bite hardest, which is why most guidance anchors gold IRA rollovers at healthy minimums. Our gold IRA fees guide itemizes every line.

The Bottom Line

A TSP to gold IRA rollover is available in full only after separation from federal service; employed feds must wait for 59½ and use TSP-75. File TSP-70 or TSP-77 with a direct transfer election, expect a pro-rata split of mixed traditional/Roth balances into two IRA checks, and weigh the G Fund’s guarantees against gold’s profile before moving more than a slice.

TSP to Gold IRA FAQ

Can I roll over my TSP while still employed?

Generally no. While you are in federal service, the TSP allows withdrawals only in narrow cases: age-based in-service withdrawals at 59½ and hardship withdrawals, and hardship money cannot be rolled over. The full balance becomes available for rollover only after you separate from federal service. Uniformed service accounts carry their own restrictions.

What is the TSP-77 form?

TSP-77 requests a partial withdrawal after you leave federal service. Use TSP-70 for a full withdrawal after separation and TSP-75 for age-based in-service withdrawals at 59½ and older. Each form lets you elect a direct transfer to an IRA — choose that option so the money moves institution-to-institution and never passes through your bank.

Can I do a partial TSP rollover?

Yes. After separation, you can withdraw part of your TSP balance, roll that portion into a gold IRA, and leave the rest invested in the G, F, C, S, and I funds — multiple partial withdrawals are allowed under current rules. While employed, only age-based (59½+) in-service withdrawals can be rolled over; hardship withdrawals cannot.

How long does a TSP to gold IRA rollover take?

Plan on roughly two to six weeks. The TSP processes withdrawal requests once your form is complete, then adds mailing or wire time, gold purchase settlement, and depository vaulting. Processing queues lengthen around the end of the year when federal retirements spike, so file early if you are scheduling a metal purchase.

What happens to my Roth TSP earnings when I roll over?

Roth TSP money must land in a Roth IRA to stay tax-free. Earnings escape tax only if you are 59½ or older and five years have passed since January 1 of the year of your first Roth TSP contribution; otherwise the earnings portion is taxable. The TSP pays mixed balances proportionally, so expect two separate checks.

Is a gold IRA a good idea for federal employees?

It depends on what you are trading away. You would give up the TSP’s rock-bottom expense ratios and the G Fund’s Treasury-backed stability, gaining tangible assets and a potential inflation hedge. Gold pays no dividends or interest, and its price swings can be sharp. Weigh both sides honestly before committing a large share of your TSP.

This article is educational information, not financial, tax, or legal advice. Confirm current rules with the TSP, the IRS, or a qualified tax professional before acting.