Can You Invest in Gold in the Thrift Savings Plan?

Can you invest in gold in the TSP

Gold may not be your only retirement savings option. An Individual Retirement Account (IRA) allows you to diversify investments over time. In particular, many savers like lifecycle funds which make allocation decisions automatically based on when their planned date of retirement will occur.

Before investing your TSP into a gold IRA, be sure to conduct research from reliable, impartial sources on this topic. Avoid companies that may have an incentive to sell you their product and ensure you make an informed decision.


When saving for retirement, most investors can benefit from diversifying their portfolio with alternative asset classes like precious metal bullion. Such diversification helps balance out laggards in hot markets while protecting against future collapses – an example is precious metal bullion.

However, the TSP does not provide an avenue for investing in physical gold and silver. If you wish to include gold as part of your retirement portfolio, a Roth IRA or similar account would be required; its custodian will oversee storage, transport and insurance needs of physical gold coins or bars stored with them.

When choosing a gold IRA custodian, it is crucial that they are both experienced and trustworthy. Check that their experience includes TSP rollovers as well as having a solid reputation in the industry. A reputable company should offer outstanding customer support with representatives available 24/7/365 who can answer questions and assist throughout the entire process – using trustee-to-trustee transfer so your money never passes through your hands directly.


Gold IRA companies use deceptive marketing and fear mongering tactics to lure seniors into their trap. They cherry pick data, ignore history and Economics 101 lessons to paint an optimistic view of returns for gold investments; in reality though gold is a highly speculative investment with high risk; additionally it’s expensive to store, transport and insure.

If you are leaving federal employment, one way to preserve its tax-deferral benefits is by rolling over your TSP into a self-directed IRA that enables physical gold bullion investments as well as precious metals investments. This method also keeps its tax deferral benefits.

The TSP provides five core investment options – G Fund, F Fund, C Fund and S Fund – as well as preset allocations of these core funds – which have generated 6-7% annual inflation-adjusted returns since 1840. Furthermore, TSP only charges 0.3% fees, one of the lowest among retirement plans.

Taxes on withdrawals

Your TSP does not permit physical gold investments; however, if you plan to retire soon or are exiting government service you can convert your TSP into either a traditional or Roth IRA and gain access to physical bullion through it. For this, a firm that specializes in self-directed IRAs – specifically gold IRAs – would be necessary.

Upon withdrawal of money from your TSP, it will be taxed as ordinary income, unlike investments which receive preferential treatment as long-term capital gains or qualified dividends.

If you choose this method, the easiest and safest approach is through direct trustee-to-trustee transfers. This ensures the funds don’t pass through your hands and any early withdrawal penalties, while still maintaining the same IRA balance and investing both physical gold and stocks/funds simultaneously. Furthermore, this enables you to split transfers into different IRAs such as standard and gold IRAs if desired.


Though the Thrift Savings Plan offers numerous investment options, including physical gold investments, there is no direct way for participants to do so. Instead, paper assets such as stocks and mutual funds provide some protection but this might not be sufficient against economic instability or collapse.

Most experts advise investing ten percent of your retirement assets in precious metals. To do so, transfer your TSP account into a self-directed gold IRA provided by a reliable dealer.

The best way to accomplish this task is through direct trustee-to-trustee transfers, also known as trustee-to-trustee transfers. This method is simpler and faster than the traditional 60-day rollover process; moreover, it enables you to divide up your TSP assets among multiple IRAs more easily; plus giving more control over investment decisions while improving tax efficiency. Just ensure your chosen firm is reliable.

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