Q. I deposited a little money into my Thrift Savings Plan, tax free, about five years ago, when I was in the military serving in Iraq. Since this money is in effect post tax, would it be possible to transfer it from my traditional TSP account to a Roth TSP account, thus allowing it to accrue tax-free interest? A. It is possible. Consult a competent tax adviser for advice about if, when and how you should do it.
Browsing: TSP transfer
Q: I am a Federal Employees Retirement System employee retiring on April 30, under the Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay at age 55. Can I take some or all of my Thrift Savings Plan balance and transfer it to a self-directed individual retirement account? What is the process for doing that? What are the estimated costs and penalties? A: You may roll over your TSP assets to an IRA following separation at at 55 with no penalty. Use Form TSP-77 to request a partial withdrawal or Form TSP-70 to request a full withdrawal of your account assets.
Q: I realize that you can leave your funds in the Thrift Savings Plan until age 70 1/2. But can you continue to contribute to the plan in retirement? If so, how? Can you have a certain amount taken out of your retirement check? If not, what is the advantage of keeping the money in the plan? Wouldn’t it be better to take it out when you retire, reinvest it and continue to contribute to the new fund until you need the money? A: You can’t continue to contribute to the TSP after you separate from service. You can transfer…
Q: I am under the Federal Employees Retirement System and have money in the Thrift Savings Plan. I returned to government service after 16 years in the private sector (I was under the Civil Service Retirement System from 1975 to 1987 but was placed in FERS in 2004 when I returned). I have retirement accounts outside TSP, but I find TSP to be easy to manage. I have considered transferring my other 401(k) accounts into TSP, but I have also heard concerns that Congress may target TSP as a source of “revenue.” I will be considering retirement in the next…