TSP status after switch to private sector


Q. I am a federal employee (FERS employee from January 1988 to the present) who will likely be leaving federal employment for a private sector position in a different city. What happens to TSP? I can either leave my money in the TSP account or roll it over; in any case, I am not touching the balance until I retire.

A. You may, and probably should, maintain your TSP for life. Later, when you leave private sector employment, you may, and probably should, move your retirement plan balance(s) to the TSP account and manage it there.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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