You spent 25 years defending this country. The TSP to Gold IRA question now determines whether your grandchildren inherit real wealth or paper promises from a government that cannot balance its own checkbook. Your Thrift Savings Plan statement shows six figures. Numbers on a screen. Managed by the same institutions you watched waste billions overseas. The TSP to Gold IRA rollover converts those digital promises into physical gold that has outlasted every empire, every currency collapse, every financial crisis in recorded history. This is not about returns. This is about what survives when systems fail.

📋 TL;DR – Quick Summary (Click to Expand)

The TSP to Gold IRA rollover allows military veterans and federal employees to convert Thrift Savings Plan funds into physical gold held in an IRS-approved depository. The process takes 7-14 business days when executed as a direct trustee-to-trustee transfer, avoiding the 20% mandatory tax withholding that indirect rollovers trigger. Veterans can roll over TSP funds after separation from service or at age 59½ while still employed. The L Fund and G Fund that anchor most TSP allocations remain vulnerable to the same currency devaluation that has eroded dollar purchasing power by 87% since 1971. Gold has preserved wealth across 5,000 years while every government-backed currency has eventually failed. The critical insight for military retirees: your Gold IRA protects wealth during normal times, but remains inaccessible during true grid-down scenarios. Complete legacy protection requires both a Gold IRA for tax-advantaged preservation AND physical gold at home for crisis access. Your service secured America’s freedom. This strategy secures your family’s financial freedom across generations.

📑 Table of Contents (Click to Expand)

• Why Veterans Move TSP to Gold IRA
• TSP to Gold IRA: What Your TSP Cannot Do
• TSP to Gold IRA Eligibility Requirements
• TSP to Gold IRA: The Transfer Process
• TSP to Gold IRA Tax Consequences and Traps
• TSP to Gold IRA Custodian Selection
• TSP to Gold IRA: The Two-Bucket Strategy
• TSP to Gold IRA Limitations: Grid-Down Scenarios
• TSP to Gold IRA Legacy Planning
• TSP to Gold IRA Implementation Steps
• Frequently Asked Questions

Why Veterans Move TSP to Gold IRA

The TSP to Gold IRA movement among military retirees reflects hard-earned wisdom about institutional trust. You watched government waste billions on contracts that delivered nothing. You saw supply chains fail when they mattered most. You learned that systems promising reliability often fail precisely when reliability matters.

Your TSP worked fine during your career. Automatic contributions. Matching funds. Steady growth charts. But now you are looking at retirement with different eyes. The same government managing your TSP has added $20 trillion in debt since you enlisted. The same Federal Reserve “managing” the dollar has destroyed 87% of its purchasing power since 1971.

Gold does not care about Federal Reserve policy. Gold does not devalue when politicians print money to cover their failures. Gold has been money for 5,000 years while every government-backed currency has eventually failed. The dollar will not be the exception. The only question is timing.

Veterans understand this better than civilians. You have seen what happens when institutions fail. You have operated in environments where systems broke down and only tangible assets mattered. The TSP to Gold IRA rollover applies that hard-earned wisdom to protecting your family’s financial future.

TSP to Gold IRA: What Your TSP Cannot Do

Understanding TSP to Gold IRA benefits requires examining what your Thrift Savings Plan cannot provide, regardless of how well it has performed.

TSP Cannot Protect Against Currency Devaluation

Every TSP fund—G, F, C, S, I, and all L Funds—is denominated in dollars. When the dollar loses purchasing power, your TSP balance might show the same number while buying less. The G Fund’s “guaranteed” returns mean nothing if those returns cannot keep pace with real inflation. Official CPI understates actual cost increases for food, healthcare, and housing—the things retirees actually buy.

TSP Cannot Provide Physical Ownership

Your TSP statement shows account balances. You own shares in funds. You do not own anything physical. In a severe financial crisis—bank holidays, system failures, institutional collapse—your TSP exists only as numbers in computers managed by institutions that may or may not function.

TSP Cannot Escape Counterparty Risk

Your TSP depends on multiple institutions functioning correctly: the Federal Retirement Thrift Investment Board, BlackRock (the fund manager), the banking system, and the federal government itself. Physical gold in a TSP to Gold IRA rollover removes most counterparty risk. The gold exists whether institutions function or not.

Factor	TSP	Gold IRA
Currency Devaluation Protection	None – all funds dollar-denominated	Full – gold rises as dollar falls
Physical Ownership	No – fund shares only	Yes – allocated physical metal
Counterparty Risk	High – multiple institutions	Low – physical asset exists
Investment Options	5 core funds + L Funds	Gold, silver, platinum, palladium
Fees	Very low (0.055%)	Higher ($200-500/year custody)
Crisis Performance	Drops with markets	Often rises during crisis

The TSP’s low fees are genuinely attractive. But low fees on an asset class vulnerable to currency devaluation still leaves you vulnerable. The TSP to Gold IRA decision is not about fees—it is about what survives systemic stress.

For comprehensive Gold IRA fundamentals, see our What Is a Gold IRA foundation guide.

TSP to Gold IRA Eligibility Requirements

The TSP to Gold IRA rollover has specific eligibility windows that military members and federal employees must understand.

After Separation from Service

Once you separate from military or federal service, you gain full control over TSP funds. You can roll over any amount to a Gold IRA without restrictions. Most veterans execute the TSP to Gold IRA transfer within the first year of retirement while actively managing their financial transition.

Age 59½ In-Service Withdrawal

If you are still employed but have reached age 59½, you can take in-service withdrawals from your TSP and roll those funds into a Gold IRA. This allows active-duty members and federal employees approaching retirement to begin repositioning assets before separation.

Partial vs. Full Rollover

You do not have to move everything. Many veterans execute a partial TSP to Gold IRA rollover—converting 20-40% of TSP holdings to physical gold while maintaining some TSP allocation. This provides diversification without abandoning the TSP entirely.

Download: Retirement Rescue Gold IRA Playbook

TSP to Gold IRA: The Transfer Process

The TSP to Gold IRA rollover process is straightforward when executed correctly. Mistakes create tax consequences that can cost thousands.

Step 1: Select a Gold IRA Custodian

Choose an IRS-approved custodian specializing in precious metals IRAs. The custodian handles all paperwork, coordinates with TSP, and manages ongoing account administration. Verify their fee structure, depository options, and liquidation process before committing.

Step 2: Open Self-Directed IRA Account

Complete the custodian’s new account paperwork. Designate the account as a Traditional IRA (to match TSP’s pre-tax status) or Roth IRA if you want to pay taxes now for tax-free withdrawals later. The Roth conversion triggers immediate taxes but provides tax-free growth and distributions.

Step 3: Initiate Direct Trustee-to-Trustee Transfer

Critical: Request a DIRECT transfer from TSP to your new Gold IRA custodian. The funds move directly between institutions. You never touch the money. This avoids the 20% mandatory withholding that indirect rollovers trigger.

Step 4: Select Physical Gold Products

Once funds arrive at your Gold IRA custodian, select IRS-approved gold products. American Gold Eagles, Canadian Gold Maple Leafs, and gold bars meeting 99.5% purity standards qualify. Your custodian purchases the gold and arranges secure depository storage.

Step 5: Verify Depository Allocation

Confirm your gold is allocated (segregated) storage, not commingled with other investors’ holdings. Allocated storage means specific bars and coins belong to you. Request depository confirmation showing your exact holdings.

For step-by-step rollover guidance, see our 401(k) to Gold IRA Rollover Guide—the TSP process follows identical steps.

TSP to Gold IRA Tax Consequences and Traps

The TSP to Gold IRA transfer has tax implications that require careful navigation. Mistakes here cost real money.

Direct Transfer: No Tax Consequences

A direct trustee-to-trustee transfer from TSP to a Traditional Gold IRA triggers zero taxes. The funds remain pre-tax throughout. You pay taxes only when you take distributions in retirement—same as if the money stayed in TSP.

Indirect Rollover: The 20% Withholding Trap

If you take a distribution check from TSP intending to roll it over yourself, TSP withholds 20% for federal taxes automatically. You receive only 80% of your balance. To complete the rollover without tax consequences, you must deposit 100% of the original balance (including the 20% withheld from your own pocket) into your Gold IRA within 60 days.

Example: $200,000 TSP balance. Indirect rollover sends you $160,000 (after 20% withholding). To avoid taxes and penalties, you must deposit $200,000 into your Gold IRA within 60 days—meaning you need to come up with $40,000 from other sources. Miss the deadline or deposit less, and you owe taxes plus potential 10% early withdrawal penalty on the shortfall.

Roth Conversion Option

You can convert Traditional TSP funds to a Roth Gold IRA. This triggers immediate taxes on the converted amount but provides tax-free growth and tax-free distributions in retirement. Veterans expecting higher future tax rates or wanting to leave tax-free inheritances sometimes choose this path despite the upfront tax cost.

Transfer Type	Tax Impact	Recommendation
Direct Transfer to Traditional Gold IRA	Zero taxes, zero withholding	Recommended for most veterans
Indirect Rollover	20% withheld, 60-day deadline	Avoid if possible
Direct Transfer to Roth Gold IRA	Immediate taxes on full amount	Consider for legacy planning

TSP to Gold IRA Custodian Selection

Your TSP to Gold IRA custodian manages your account for decades. Choose carefully based on factors that matter for long-term relationships.

Fee Transparency

Legitimate custodians provide complete fee schedules in writing before you commit. Expect setup fees ($50-150), annual maintenance ($100-300), and storage fees ($100-200). Some custodians bundle fees; others itemize. Get the total annual cost in writing.

Depository Options

Verify which depositories the custodian uses and whether they offer allocated (segregated) storage. Delaware Depository, Brink’s, and IDS of Delaware are established options. Confirm insurance coverage and audit procedures.

Liquidation Process

Understand how you will sell gold when you need distributions. How long does liquidation take? What spreads do their dealers charge? Some custodians lock you into their dealer network with unfavorable spreads. Others allow competitive dealer access.

For detailed custodian comparisons, see our Best Gold IRA Custodians guide.

TSP to Gold IRA: The Two-Bucket Strategy

The TSP to Gold IRA rollover provides essential protection—but it is not complete protection. Veterans who understand operational realities recognize the need for two distinct gold positions.

Bucket 1: Gold IRA (Distant Gold)

Your Gold IRA provides tax-advantaged wealth preservation during normal times. The gold sits in a secure depository, professionally insured, protected from personal liability and lawsuits. This is where you hold the bulk of your precious metals allocation—$50,000 to $500,000+ depending on your situation.

During normal economic functioning, the Gold IRA works perfectly. You maintain wealth, defer taxes, and have a professionally managed asset.

Bucket 2: Physical Gold at Home (Close Gold)

Your Gold IRA has a critical limitation: it requires functioning infrastructure to access. The custodian needs working phones. The depository needs operating systems. Banks need to process transfers. In a true grid-down scenario—extended power outages, banking system collapse, societal disruption—your “gold” sits in a vault 1,000 miles away that you cannot reach.

Physical gold at home provides immediate access regardless of infrastructure. American Gold Eagles in a home safe require no electricity, no internet, no functioning bank to hold value. This is your operational reserve—typically $5,000 to $25,000 in fractional coins suitable for actual use.

The Complete Strategy

Your Gold IRA protects wealth during normal times. Your physical gold protects your family when normal ends. You served in environments where systems failed. You know the difference between theoretical protection and operational protection. The two-bucket strategy provides both.

Download: Retirement Rescue Gold IRA Playbook

TSP to Gold IRA Limitations: Grid-Down Scenarios

Veterans must understand what the TSP to Gold IRA rollover cannot protect against. Honesty about limitations builds sound strategy.

This is not a criticism of Gold IRAs. They serve their purpose exceptionally well. But veterans who have seen systems fail understand that complete protection requires assets accessible under any conditions.

Your Gold IRA handles 95% of scenarios: inflation, market crashes, currency devaluation, political instability, bank failures that get resolved within the system. Physical gold at home handles the remaining 5%: extended grid failures, societal breakdown, scenarios where systems do not recover quickly.

For comprehensive preparedness strategies, see our Gold Investment for Preppers pillar guide.

TSP to Gold IRA Legacy Planning

The TSP to Gold IRA rollover serves legacy protection that extends beyond your lifetime. This is where the military mindset of generational duty applies directly.

What You Actually Leave Behind

Your TSP leaves dollars—whatever they are worth when your grandchildren inherit them. Given the dollar has lost 87% of purchasing power since 1971, what will that trajectory look like in another 30 years?

Your Gold IRA leaves physical gold—an asset that has maintained purchasing power for 5,000 years. Gold coins your grandchildren inherit will buy roughly what they buy today, regardless of what politicians do to the currency.

Beneficiary Designation

Name primary and contingent beneficiaries on your Gold IRA. Beneficiaries inherit the gold under IRA rules—either as an inherited IRA with required distributions or as a lump sum depending on their relationship and choices.

Roth Conversion for Tax-Free Inheritance

Converting to a Roth Gold IRA means you pay taxes now, but your beneficiaries inherit completely tax-free. For veterans prioritizing legacy over personal tax optimization, this creates a permanent gift of tax-free wealth to future generations.

You served to protect future generations. The TSP to Gold IRA rollover continues that mission through financial protection that outlasts governments and currencies.

TSP to Gold IRA Implementation Steps

Veterans ready to execute the TSP to Gold IRA strategy should follow this operational sequence.

Phase 1: Reconnaissance (Week 1)

• Confirm TSP balance and rollover eligibility
• Determine allocation percentage (how much to move)
• Research 2-3 Gold IRA custodians
• Request fee schedules and depository information

Phase 2: Selection (Week 2)

• Compare custodian fees, depository options, and liquidation processes
• Select custodian and initiate account opening
• Complete new account paperwork
• Designate beneficiaries

Phase 3: Execution (Weeks 2-4)

• Initiate direct trustee-to-trustee transfer from TSP
• Monitor transfer progress
• Select physical gold products once funds arrive
• Confirm depository allocation and obtain documentation

Phase 4: Operational Reserve (Ongoing)

• Separately purchase physical gold for home storage
• Focus on fractional coins (1/10 oz, 1/4 oz American Gold Eagles)
• Establish secure home storage solution
• Maintain operational reserve of $5,000-$25,000 in accessible gold

For account type comparisons, see our Traditional vs Roth vs Gold IRA comparison.

📋 TSP to Gold IRA: Frequently Asked Questions (Click to Expand)

Can I roll my TSP into a Gold IRA?

Yes. After separation from military or federal service, you can roll over TSP funds to a Gold IRA through a direct trustee-to-trustee transfer. If still employed, you become eligible for in-service withdrawals at age 59½. The process takes 7-14 business days when executed as a direct transfer.

What is the difference between TSP and Gold IRA?

TSP holds paper assets (stocks, bonds, government securities) denominated in dollars. A Gold IRA holds physical precious metals in IRS-approved depositories. TSP is vulnerable to currency devaluation since all funds are dollar-based. Gold maintains purchasing power regardless of Federal Reserve policy. TSP has lower fees but higher counterparty risk.

How long does a TSP to Gold IRA transfer take?

A direct trustee-to-trustee TSP to Gold IRA transfer typically takes 7-14 business days. TSP processes the distribution request, sends funds to your Gold IRA custodian, and the custodian purchases physical gold for your account. Some delays may occur during high-volume periods or if paperwork requires correction.

Will I pay taxes on a TSP to Gold IRA rollover?

Direct transfers trigger zero taxes. Funds move directly between institutions without you touching the money. Indirect rollovers trigger 20% mandatory withholding and require you to deposit the full amount within 60 days to avoid taxes and penalties. Converting to a Roth Gold IRA triggers immediate taxes on the converted amount.

How much of my TSP should I roll into gold?

Most financial advisors suggest precious metals comprise 5-15% of retirement portfolios. Veterans concerned about currency devaluation often allocate 15-30%. The decision depends on your total retirement assets, pension income, risk tolerance, and beliefs about economic stability. Many veterans execute partial rollovers, moving 20-40% of TSP to gold while maintaining diversification.

What gold products can I buy in a Gold IRA?

IRS-approved Gold IRA products include American Gold Eagles (any purity due to statutory exception), Canadian Gold Maple Leafs, Australian Gold Kangaroos, Austrian Gold Philharmonics, and gold bars meeting 99.5% purity requirements from approved refiners. Your custodian provides a list of approved products.

Where is Gold IRA gold stored?

Gold IRA holdings must be stored in IRS-approved depositories—you cannot keep IRA gold at home. Common depositories include Delaware Depository, Brink’s Global Services, and IDS of Delaware. Choose allocated (segregated) storage so specific coins and bars belong to you, not commingled with other investors’ holdings.

What happens to my Gold IRA when I die?

Designated beneficiaries inherit your Gold IRA according to IRS inherited IRA rules. Spouses can roll the inherited IRA into their own IRA. Non-spouse beneficiaries typically must take distributions over 10 years. Roth Gold IRA inheritances are completely tax-free to beneficiaries. Name primary and contingent beneficiaries to ensure smooth transfer.

Can I access my Gold IRA during emergencies?

You can take distributions from your Gold IRA, but normal IRA rules apply. Before age 59½, distributions trigger 10% early withdrawal penalty plus income taxes. After 59½, you pay only income taxes. Liquidation takes 3-7 business days typically. For true emergency access during infrastructure failures, you need physical gold outside your IRA.

What are the annual costs for a Gold IRA?

Annual Gold IRA costs typically include custodian maintenance fees ($100-300), depository storage fees ($100-200), and insurance (often included in storage). Total annual costs range from $200-500 for typical accounts. Compare this to TSP’s 0.055% expense ratio. Higher Gold IRA fees buy physical ownership and currency devaluation protection that TSP cannot provide.