Tax-deferred IRA


Q. I plan to retire next year and am considering the transfer of my entire TSP into a tax-deferred IRA. Once I leave federal service, I will not be able to contribute to my TSP account any longer. If I make the transfer of my TSP into a tax-deferred IRA, can I still make contributions to the new IRA and reduce my taxable income in retirement? Or for tax purposes, would it be better for me to leave my TSP where it is and just withdraw an annuity directly from it?

A. Why not keep your TSP and open an IRA? When you are finished contributing to the IRA, you can transfer the balance into your TSP account and manage it there for the rest of your life.


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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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