Q. I have been a retired CSRS employee for more than two years and understand that I can transfer my traditional IRA to the Thrift Savings Plan, where the expenses are much lower. Some portion of my traditional IRA contributions in my early career years was tax-deductible. How would that be treated when I move the funds to the TSP and eventually start withdrawals? Or do you recommend I transfer the traditional IRA to TSP since some of my funds are tax-deductible?
A. I think you mean that your IRA contains money that has already been taxed. That is, contributions that were NOT tax-deductible. The TSP won’t accept transfers from accounts that contain this kind of money.
