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 seven to 10 years and would like to manage my funds from one place. Are you aware of any negatives I should consider?
A: The rumor you’ve heard also applies to private-sector retirement plans and individual retirement accounts. I don’t think that it’s worth worrying about at this point. The TSP is the best place to save for retirement, and I encourage you to transfer you outside balances into it whenever possible.