how to move your tsp to gold ira while still employed

How To Move Your TSP To Gold IRA While Still Employed

Moving your TSP to a gold IRA while still employed means that you are making an in-service withdrawal. There are two types of in-service withdrawals you can use to complete the process. Here, you will learn how to move your TSP to gold IRA while still employed with these two methods.

Financial Hardship In-Service Withdrawals

Financial hardship in-service withdrawal is the first method you can use to move TSP to a gold IRA. In this method, you have to pay income tax and a 10% early withdrawal penalty tax. Remember! You are doing this process while you are an employee.

You are allowed to do this move if you have negative cash flow. It means that you need money to fill your daily needs. The company often checks your net income. You may move your TSP to gold if your income is less than your expenses.

The information you need to ensure that you have negative monthly cash flow is including the gross monthly income, net monthly income, and total fixed monthly expenses. You are also allowed to do this process when you have extraordinary expenses, including eligible medical expenses, personal casualty losses, and legal expenses.

The Rules to Move TSP to Gold IRA with a Financial Hardship Withdrawal Method

Ensure that you withdraw more than $1.000. The company will not approve your request if you withdraw less than $1.000. The money has to be taken from your contributions, including your TSP money or the earnings on the contributions.

Choose only one type of withdrawal, although you have traditional money and Roth money. Make sure that the withdrawal for covering a genuine financial hardship. The amount of the financial hardship withdrawal is limited based on your financial need. You are not allowed to make another financial hardship withdrawal from your account for six months.

Aged-Based In-Service Withdrawal

How to move your TSP to gold IRA while still employed, yet you are 59.5 years old now? It means you can use age-based in-service withdrawal or 59.5 withdrawal. Like the financial hardship withdrawal method, you still have to pay income tax unless you transfer or roll it over to a gold IRA. The difference is that you don’t need to pay a 10% tax penalty.

The Rules To Move TSP to Gold IRA with 59.5 Withdrawal

Ensure that you are at least 59.5 years old. You also need to have a withdrawal number option whether you have both types of money or one type. For those who only have one type of money, withdraw a specific dollar amount from your vested account balance of at least $1.000.

It is okay if you want to withdraw your entire vested account balance. For those who have both traditional and Roth money, you can withdraw at least $1.000 or withdraw the entire vested traditional balance. It is the same case with your Roth balance.

Once you complete all the requirements, visit tsp.gov and log into your account. This website supports you with features to start your withdrawal. Complete all the requests and submit them online immediately. Wait for approval from the institution. You are successfully moving TSP to Gold IRA once you receive the approval. Now, you know how to move your TSP to Gold IRA while you are employed and it is possible to do.

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