How to Convert Your Thrift Savings Plan to a Gold IRA
You can convert your Thrift Savings Plan to a gold IRA. The Thrift Savings Plan or the TSP is a program from the government for federal employees or military member’s retirement. It provides you with some basic functionality in investment, even you can invest in physical silver and gold as your retirement plan to save you from the recession, economic collapse, and monetary devaluations.
1. TSP Plan Definition
This retirement plan is offered by The United States government for military employees and the workers of the armed services. This retirement plan is similar to 401(k) where employees can defer their money from the payroll into an account of retirement investment. They also have the choice to match their investment types of programs offered by the federal government.
When you choose to contribute, your money will then be placed into the TSP or Thrift Savings Fund. You can mix and match some investment options based on your needs. There will be six types of TSP investment you can try. They are called the L, I, S, C, F, and G funds. Each of them will have their own levels of risks. And if you would like to roll over the TSP investment into an IRA or other plan.
2. Leaving TSP Fund
The options of investment in the Thrift Savings Plan are limited though you can mix and match several choices into one. If you want to mix it with other kinds of investment, the open opportunity is given by the L funds or the individual fund that forms these funds, or the combination of the two investments.
People cannot invest in precious metals while at the same time investing their money in TSP. Thus, investing money in an IRA will give you more flexibility and control.
3. Methods to Move
When you are considering to convert your Thrift Savings Plan to a gold IRA, there are two methods you can try. The first one is the Rollover. In this method, you will withdraw your fund from your TSP account and deposit the money into the IRA. Make sure that you mark your deposit not as a contribution, but as a rollover.
To have this, you need to complete the process within 60 days. If more than that, then the IRS will see the money as a withdrawal, then you have to pay taxes. This method may bring a problem, especially when there is a mistake that thinks you take your money as withdrawal and not invest it in other plans. It will trigger many tax payments, and make you end up in a loss of your retirement money.
Another method is a direct method that will move your cash or TSP assets to the IRAs. In this method, you will not receive the money physically, but it will be directly moved to the new account. By using this way, you don’t have to be afraid of the 60-day-due-date.
Convert Your Thrift Savings Plan to a Gold IRA Fund
Remember that you can have more than one IRA, which means you can divide your money to invest in several allocations. And for silver and gold investment, experts recommend giving at least 10% of the investment. When you convert your Thrift Savings Plan to a gold IRA, you better choose a respected yet well-known dealer.