Why Consider a TSP Rollover To Gold?
Many pre-retirees had their fingers burnt in the 2007-2008 financial collapse when they saw the value of the stocks and paper assets within their retirement plans tumble. This included TSP participants and many have since realized the benefits of holding assets which traditionally hedge their investment savings from future collapses, with physical gold being the most common and popular example.
The good news though is that once you move or retire from federal service you can transfer or rollover your Thrift Savings Plan to an individual retirement plan (IRA). This will give you the opportunity to include gold and other precious metals in your fund henceforth. This is why the TSP Rollover to Gold IRA concept has taken off and become increasingly popular in recent years.
Which Type of IRA For Your TSP Rollover To Gold?
A Roth IRA will give you the opportunity to invest in gold indirectly through paper gold – gold stocks , gold ETFs and gold derivatives.
If you want to invest in physical gold (coins or bars) however, you’ll need the vehicle of a self-directed IRA.
As well as giving you the opportunity to invest in physical precious metals, a self-directed IRA will allow you to select which assets to invest your retirement funds in. This will allow you to set up a diversified and personally chosen retirement portfolio which can also offer you tax benefits.
A Gold IRA, the specific type of IRA that you will need for your TSP rollover to gold, is a self directed IRA (as opposed to a regular IRA – traditional or Roth) which has a precious metals company as its custodian. Within this account you will be able to buy and sell bullion.
The TSP Rollover To Gold IRA Process
You have 2 options for converting your TSP into a retirement fund that will permit the inclusion of precious metals in their physical form.
1. TSP Transfer
Here, your current IRA custodian (this may be for the TSP or for a different IRA) sends a distribution check to the new custodian. There is no limit on the amount of times this can be done. Many, many people have already done this successfully and are now enjoying the benefits that a self directed IRA offers.
2. TSP Rollover
With this method your existing custodian sends your retirement funds to you and it is then your responsibility to place the funds into one or more IRAs within 60 days. If you exceed that deadline the IRS will consider the transaction to be a withdrawal and you will be liable to pay taxes on it.
Let the experts at Regal Assets assist you to rollover from TSP to a Gold IRA today