Transfering TSP to Vanguard


Q. I am eligible to retire next year at age 50 as a law enforcement officer under FERS. I plan on taking life expectancy payments from my TSP/401(k) as soon as I retire. If, upon retirement, I elect to transfer my TSP balance to a company like Vanguard, will I still be able to withdraw life expectancy payments from Vanguard and avoid the 10 percent early withdrawal penalty?

A. Yes, but why would you give up access to the G Fund for the rest of your life? There are good reasons to stick with the TSP and maximize the amount of retirement money you hold there. I can’t think of a good reason to leave the TSP for an IRA.


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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 and view his blog at

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