Rolling Over a TSP Into a Gold IRA
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Short on time? The essentials
- The TSP is the retirement plan for federal civilian employees and members of the uniformed services, including the Ready Reserve, established under the Federal Employees Retirement System Act of 1986. It rolls to an IRA under the same federal rules as a private-sector 401(k).
- A direct rollover of traditional TSP money to a traditional self-directed IRA is not taxable. A payment made to the account owner instead triggers mandatory 20 percent federal withholding under IRC Section 3405 and starts a 60-day clock.
- Roth TSP dollars roll to a Roth IRA tax-free. Rolling traditional TSP dollars to a Roth IRA is a Roth conversion and is taxable in the year you do it (IRS Publication 721).
- The age 55 penalty-free path in the TSP is preserved only if the participant separates in or after the calendar year they turn 55 and takes distributions directly from the TSP. Rolling the money to an IRA cancels that exception (IRC Section 72(t)(2)(A)(v)).
- Qualified public safety employees get an earlier age 50 or 25-years-of-service exception under IRC Section 72(t)(10), and only while the money stays inside the TSP.
- Uniformed services TSP accounts may include contributions from tax-exempt combat pay. Those contributions stay tax-exempt when distributed; associated earnings are taxable.
- Texas adds no state income tax on any taxable IRA distribution. The state-run Texas Bullion Depository in Leander is an in-state IRA storage option through Lone Star Tangible Assets.
On this page
- When you can actually move TSP money
- The TSP-to-gold-IRA rollover in seven steps
- The age 55 exception (and age 50 for public safety)
- Direct vs indirect: the 20 percent withholding chart
- Traditional TSP and Roth TSP: tax type must match
- Uniformed services TSP: combat pay and tax-exempt basis
- What gold the IRA can hold
- What Texas changes
- The fee stack you will see
- Check your account is eligible
- Worked example: a San Antonio veteran rolls 180,000 dollars
- When rolling the TSP to a gold IRA is a bad idea
- TSP to gold IRA FAQ
When you can actually move TSP money
The TSP is not freely portable. Federal law and the TSP plan document together control when a participant can take a distribution. That gate decides whether a gold IRA rollover is available today or only after a future event.
Three common triggers unlock a distribution. The participant separates from federal civilian service or from the uniformed services. The participant reaches age 59 and a half while still in service, which unlocks a one-time in-service withdrawal under TSP rules. Or the account owner qualifies under a narrow event such as total and permanent disability.
Separation is the most common path. Once you have left federal service or the military, you can request a direct rollover of the full balance into a self-directed IRA at any age. The TSP handles the request through the participant My Account portal on TSP.gov.
A partial rollover is allowed. You can leave some of the balance inside the TSP under its low expense ratio and move a portion into the new gold IRA. Confirm the current minimum balance rule with the TSP before you file the request. The historical threshold to keep a TSP account open is 200 dollars.
The TSP-to-gold-IRA rollover in seven steps
The mechanical sequence is consistent across TSP rollover requests. The forms, the wire details, and the current My Account interface change over time. The order of operations does not.
- Confirm the TSP is eligible to distribute. Verify separation status, age 59 and a half, or a qualifying disability event. If you are still in federal or military service, the distribution options are limited by the TSP plan rules.
- Open a self-directed IRA. A precious-metals IRA needs a qualified non-bank trustee or self-directed IRA custodian. Equity Trust Company, STRATA Trust, and GoldStar Trust are commonly used for Texas accounts.
- Pick a gold IRA dealer. The dealer sources the metal and coordinates with your custodian. Verify the dealer works with your chosen custodian and quotes tight spreads on common bullion before paperwork is signed.
- File the TSP rollover request. Log in to My Account on TSP.gov, choose the withdrawal or rollover option, and select the direct rollover path. The wire is made payable to the receiving custodian, for the benefit of you, with your new IRA account number.
- Place the metal order. Once cash arrives in the new IRA, instruct the custodian to pay the dealer for IRS-approved bullion or coins meeting the fineness thresholds in IRC Section 408(m)(3). The dealer ships direct to an approved depository.
- Confirm the depository entry. The depository issues a receipt to your custodian. You receive an inventory line in your IRA statement. Storage can be segregated or commingled depending on the agreement.
- File the right forms next April. The TSP issues Form 1099-R with distribution code G for a direct rollover. The receiving custodian issues Form 5498. You report the gross amount on Form 1040 line 5a and zero on line 5b.
The age 55 exception (and age 50 for public safety)
IRS Publication 721 confirms the age 55 rule for TSP participants. If you separate from federal or military service in or after the calendar year you turn 55, distributions taken directly from the TSP are not subject to the 10 percent federal early-withdrawal penalty.
Qualified public safety employees get an earlier ramp under IRC Section 72(t)(10). The penalty exception applies at age 50, or after completing 25 years of service under the plan, whichever comes first. That group covers federal law enforcement, federal firefighters, federal air traffic controllers, and a handful of other categories the IRS lists.
The exception does not survive a rollover. Once the money moves into an IRA, the IRA distribution rules apply. The 10 percent penalty reappears on any IRA withdrawal before age 59 and a half unless a different exception fits.
Practical implication. If you separated at 55 to 59 and expect to draw on retirement cash before 59 and a half, leaving that cash slice inside the TSP preserves the penalty-free path. A partial rollover into a gold IRA, with a residual cash slice left in the TSP, is a workable design. Confirm current TSP partial-rollover rules before you file.
Direct vs indirect: the 20 percent withholding chart
IRS Publication 721 recognizes two ways to move TSP money into an IRA. The label is paperwork. The dollar consequence is large.
A direct rollover sends the balance from the TSP straight to the new IRA custodian. The check or wire is made payable to the custodian, not to you. No federal withholding applies. No 60-day clock runs.
A payment to the account owner works differently. Under IRC Section 3405 the TSP must withhold 20 percent for federal income tax before releasing the check. You then have 60 days to redeposit the full pre-withholding amount, including the missing 20 percent paid from your own savings, into the new IRA.
The 20 percent withholding is later credited against your federal tax bill when you file. If you redeposited the full amount on time, the credit comes back as part of your refund. If you only redeposit the 80 percent you received, the missing 20 percent is treated as a taxable distribution. A 10 percent federal early-withdrawal penalty stacks on top if you are under age 59 and a half and no exception applies.
The direct path avoids all of that. It is the default recommendation for almost every TSP-to-gold-IRA move.
Traditional TSP and Roth TSP: tax type must match
The TSP holds two buckets of money. Pre-tax dollars (the traditional balance) were never taxed on the way in. After-tax dollars (the Roth balance) were taxed on the way in and grow tax-free if the qualified-distribution rules are met.
Traditional TSP dollars roll to a traditional IRA. That includes agency matching contributions, which are treated as pre-tax money. The rollover itself is not taxable when done as a direct rollover.
Roth TSP dollars roll to a Roth IRA. Under IRS Publication 721, a direct rollover of Roth contributions and earnings is not subject to federal tax. Confirm the 5-year clock treatment with your tax advisor, since the Roth TSP holding period does not automatically carry across to the Roth IRA in every case.
Rolling traditional TSP money directly to a Roth IRA is a different transaction. It is a Roth conversion and is taxable in the year you do it. IRS Publication 721 states the amount transferred will be taxed in the current year. Do the conversion math with a CPA before you sign a form that mixes these paths.
Uniformed services TSP: combat pay and tax-exempt basis
A uniformed services TSP account can include contributions from tax-exempt combat pay. IRS Publication 721 states that those contributions are tax-exempt when they are distributed from the uniformed services TSP account. Earnings on the tax-exempt contributions are still taxable at distribution.
Practical impact on a rollover. The tax-exempt contribution basis carries with the money. If you roll a uniformed services TSP balance into a traditional gold IRA, the tax-exempt basis becomes IRA basis and is reported on Form 8606 in future years. That basis reduces the taxable portion of any later IRA distribution.
Track the basis carefully. Losing the tax-exempt basis paperwork means paying tax twice on the same dollars later. Keep the Form 1099-R and any TSP statements that show the tax-exempt portion of the balance.
Service members who plan to keep contributing to the TSP through further active duty may want to hold off on a rollover. Once the account is drained, the tax-exempt basis is gone from the TSP, and future contributions during deployment restart the basis clock on a new balance.
What gold the IRA can hold
IRC Section 408(m) bans collectibles inside an IRA. It then carves out an exception for bullion and certain coins meeting a fineness threshold. The gold floor is 99.5 percent purity. Silver is 99.9 percent. Platinum and palladium are 99.95 percent.
Two coins are named statutory exceptions inside the rule. The American Gold Eagle is IRA-eligible at 91.67 percent (22-karat). The American Silver Eagle is IRA-eligible at 99.9 percent. Proof Eagles qualify when held in original mint packaging with the certificate.
Bars must come from a refiner or assayer approved by NYMEX, COMEX, LBMA, or produced by a national government mint. Common eligible names include PAMP Suisse, Credit Suisse, Valcambi, the Royal Canadian Mint, and the Perth Mint.
Common eligible coins include the American Gold Eagle (statutory), American Gold Buffalo at 99.99 percent, Canadian Gold Maple Leaf at 99.99 percent, Austrian Gold Philharmonic at 99.99 percent, and Australian Kangaroo at 99.99 percent. The South African Krugerrand sits at 91.67 percent gold with no statutory exception; it is not IRA-eligible.
What Texas changes
Federal IRA rules apply identically in every state. What Texas changes is the wrapper around them.
Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. Any taxable IRA distribution, including a botched indirect rollover or a future required minimum distribution, is taxed at the federal level only. A Texas resident does not pay a state layer on top.
For storage, Texas offers a unique in-state option. The Texas Bullion Depository is an agency of the State of Texas, authorized by HB 483 signed by Governor Greg Abbott on June 12, 2015. It has operated since 2017 on a roughly 10-acre, purpose-built campus in Leander, Texas, with Lone Star Tangible Assets (LSTA) as the contractor.
The depository accepts gold, silver, platinum, palladium, and rhodium. IRA storage is supported through LSTA, which received IRS non-bank trustee approval. Equity Trust Company is one of the self-directed IRA custodians wired in for coordination with LSTA. Confirm the current IRA-storage process directly with the dealer and custodian, since pricing and account-opening flow are negotiated case by case. Source: texasbulliondepository.gov IRA storage page, checked June 2026.
The practical takeaway for a Texan rolling a TSP balance. The federal mechanics do not change. The state tax line is zero. The metal can be held inside the state at a state-overseen depository instead of in Wilmington or Salt Lake City. None of that changes whether the underlying decision is right for your situation.
The fee stack you will see
The TSP is unusually cheap on the operating side. Total net expense ratios on the core TSP funds sit well under 10 basis points, one of the lowest cost structures available in a US retirement plan. A gold IRA has a different fee stack, with several stacked line items.
| Fee | What it pays for | How it is usually charged |
|---|---|---|
| Custodian setup | Opening the self-directed IRA account | One-time at account open |
| Annual custodian fee | Recordkeeping, tax reporting (Form 5498), statements | Flat annual fee or tiered by account size |
| Annual storage fee | Depository vault, insurance, audits | Flat annual fee, sometimes scaled by value |
| Dealer markup on metal | Spread between spot price and the price you pay | Embedded in the metal price; rarely itemized |
| Wire and shipping | Funding wire, dealer-to-depository shipping | Per-event flat fee |
| Buyback spread | Difference between dealer bid and current spot | Only when you sell back to the dealer |
| TSP account maintenance | A small annual net expense the TSP absorbs from balances | Basis points on the balance held in the TSP |
Sourced from public fee schedules at Equity Trust, STRATA Trust, GoldStar Trust, Delaware Depository, and Brinks Global Services, plus the annual TSP financial statements published by FRTIB. Confirm current pricing with each provider before signing. Checked June 2026.
The dealer markup is the line item with the widest range. Common bullion coins and bars carry tighter spreads. Premium or proof coins sold as exclusive or limited carry markups that can be several times higher. A clean rollover gets undone fast if the metal is bought at a 25 percent or 35 percent markup.
Check your account is eligible
Before you call a provider, confirm the TSP is actually eligible to roll. The screening tool below walks through separation status, age, and basic timing rules. It is a triage step, not legal or tax advice.
Can you roll your account into a gold IRA? Eligibility checker
Most retirement money can move into a gold IRA once it is an eligible rollover distribution. Pick your account and situation for a general answer. Always confirm the specifics with your plan administrator or custodian.
General guidance only, not tax or financial advice. Eligibility depends on your specific plan document and IRS rules; confirm with your plan administrator and a tax advisor. A direct trustee-to-trustee transfer avoids the 60-day rule and 20% withholding.
Picking a company that explains every fee up front is the first step. Get the free gold IRA company checklist.
Worked example: a San Antonio veteran rolls 180,000 dollars
Your next step
If a TSP-to-gold-IRA rollover looks like the right move, the highest-leverage action is to vet the provider before signing anything. Augusta Precious Metals is our primary affiliate partner and publishes a free gold IRA company checklist built for that vetting step.
Get the Augusta Precious Metals gold IRA company checklistSponsored link. Use it to evaluate any provider you call, including Augusta itself. Past performance is not a guarantee of future results.When rolling the TSP to a gold IRA is a bad idea
A gold IRA is not the right move for every TSP participant. The patterns where it tends to backfire are repeatable. We list them here, with no CTA attached.
You are between 55 and 59 and a half and need TSP cash for living expenses. Distributions taken directly from the TSP are penalty-free after separation in the year you turn 55. Rolling the money to an IRA cancels that penalty-free path.
You are a qualified public safety employee under 59 and a half. The age 50 exception in IRC Section 72(t)(10) only applies while the money stays in the TSP. Rolling to an IRA loses it.
You have combat pay basis you want to keep visible. Tax-exempt basis becomes IRA basis after a rollover, which requires careful Form 8606 tracking. If the paperwork worries you, keeping the balance in the TSP simplifies the reporting.
Your balance is small. A 12,000 dollar IRA carrying a 200 dollar annual custodian fee and a 150 dollar storage fee is paying close to 3 percent per year on flat operating costs alone, before any dealer markup. TSP net expense ratios are far lower.
You still expect further contributions to the TSP. A partial rollover is workable while in service if the account has passed the age-59-and-a-half in-service rule. A full rollover closes the account and ends the low-cost recordkeeping benefit.
You need the money inside 5 years. Physical metal inside an IRA is liquid in principle and slow in practice. Buyback spreads and depository release timing add friction.
The dealer is pushing premium or proof coins. Wide markups on graded coins are the most common way a gold IRA goes wrong. Stay with common bullion coins and bars.
You want the metal at home. An IRA cannot hold metal at your house. The 2021 Tax Court ruling in McNulty v. Commissioner confirmed that home storage triggers a full distribution.
TSP to gold IRA FAQ
Can I roll my TSP into a gold IRA while still in federal or military service?
Usually no. The TSP does not allow full portability during active service. Once you reach age 59 and a half you can request an in-service rollover under TSP rules. Most rollovers happen after separation from federal civilian service or the uniformed services.
Is a TSP-to-gold-IRA rollover taxable?
A direct rollover between accounts of the same tax type is not taxable. Traditional TSP dollars roll to a traditional gold IRA tax-free. Roth TSP dollars roll to a Roth gold IRA tax-free. A traditional TSP direct rollover to a Roth IRA is a Roth conversion and is taxable in the year you do it (IRS Publication 721).
What is the 20 percent withholding rule on a TSP distribution?
Under IRC Section 3405 the TSP must withhold 20 percent for federal tax on any eligible rollover distribution paid to the account owner. A direct rollover avoids it because the check goes to the receiving IRA custodian, not to you. A payment to you triggers the 20 percent withholding and starts the 60-day redeposit clock.
Does Texas tax a TSP rollover or distribution?
No. Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. A botched rollover that becomes a taxable distribution is taxed by the IRS only. The 10 percent federal early-withdrawal penalty still applies if you are under age 59 and a half and no exception fits.
Will I lose the age 55 penalty exception by rolling the TSP?
Yes, on the rolled money. The age 55 separation-from-service exception under IRC Section 72(t)(2)(A)(v) applies only while the balance stays inside the TSP. Once the money moves into an IRA, the IRA distribution rules apply, and the 10 percent penalty reappears on withdrawals before age 59 and a half unless a different exception fits.
What happens to combat pay contributions if I roll a uniformed services TSP into an IRA?
The tax-exempt basis from combat pay contributions carries with the money into the IRA. It becomes IRA basis and is reported on Form 8606. That basis reduces the taxable portion of any future IRA distribution. Keep the TSP statements and Form 1099-R that show the tax-exempt portion.
Can I roll only part of my TSP into a gold IRA?
Yes. The TSP allows partial rollovers. A partial rollover is the standard tool for keeping the age 55 penalty exception alive on a cash slice while moving the metal slice into a gold IRA. Confirm the current TSP minimum balance rule before you file.
What forms do I get after a TSP direct rollover?
The TSP issues Form 1099-R with distribution code G (direct rollover) for the full amount. The receiving self-directed IRA custodian issues Form 5498 reporting the rollover contribution. You report the gross amount on Form 1040 line 5a with a taxable amount of zero on line 5b.
Sources
- Internal Revenue Service. Publication 721: Tax Guide to U.S. Civil Service Retirement Benefits. irs.gov/publications/p721. Checked June 2026.
- Internal Revenue Service. Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs). irs.gov/publications/p590a. Checked June 2026.
- Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs). irs.gov/publications/p590b. Checked June 2026.
- Internal Revenue Service. Topic No. 413, Rollovers from Retirement Plans. irs.gov/taxtopics/tc413. Checked June 2026.
- Internal Revenue Service. Topic No. 558, Additional Tax on Early Distributions from Retirement Plans. irs.gov/taxtopics/tc558. Checked June 2026.
- Internal Revenue Code Section 402(c). Rollovers from qualified plans. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 3405. Special rules for pensions, annuities, and certain other deferred income. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 408(m). Collectibles rule and bullion exception. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 72(t)(2)(A)(v). Separation-from-service exception at age 55. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 72(t)(10). Qualified public safety employee exception. uscode.house.gov. Checked June 2026.
- Federal Retirement Thrift Investment Board. Thrift Savings Plan. frtib.gov. Checked June 2026.
- Thrift Savings Plan. TSP.gov: withdrawals, rollovers, and My Account. tsp.gov. Checked June 2026.
- United States Tax Court. McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021). Home-storage IRA confirmed as a full distribution.
- Texas Bullion Depository. IRA Storage Services. texasbulliondepository.gov. Checked June 2026.
- Office of the Texas Comptroller of Public Accounts. Texas Bullion Depository overview. comptroller.texas.gov. Checked June 2026.
- Texas Constitution, Article 8, Section 24. Prohibition on a state personal income tax. statutes.capitol.texas.gov. Checked June 2026.