Q. I am currently employed with 10 years service accrued in the Federal Employee Retirement System. If I were separated/left federal employment for the private sector, would I be allowed to roll over the entire contents of my 401(k) account (acquired via my new employment) into my Thrift Savings Plan? Similarly, if I were to retire from federal employment, would I be allowed to roll over the entire contents of any 401(k) account(s) (acquired as a result of any previous private-sector employment) into my TSP? A. As long as you maintain your TSP account, whether employed, separated or retired from federal…
Browsing: pretax contributions
Q. I retired in 2007 and am in the Civil Service Retirement System. Am I permitted to continue to contribute monthly to my Thrift Savings Program? May I roll over the entire contents of my Individual Retirement Account into TSP? Can I then make monthly contributions into TSP from my checking account? A. You may not contribute to the TSP after you retire, but you may transfer eligible IRA balances into the TSP at any time. To be eligible, the IRA must contain only pretax money.
Q: Thank you for agreeing to respond to my New Jersey Thrift Savings Plan taxation question. New Jersey does not permit federal employees to contribute pretax dollars into TSP accounts. Its position is that TSP was not established under a Internal Revenue Code 401(k) plan. As this impacts many thousands of federal workers in the state, my question is: Presumably at retirement, New Jersey TSP participants will be taxed at the federal level for all TSP distributions, and at the state level for distributions minus contributions which NJ previously taxed (let’s hope so; that alone may be a recordkeeping nightmare).…