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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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430943298743  
#1 Posted : Wednesday, November 24, 2021 6:14:41 PM(UTC)
430943298743

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Hello

I have been employed by the federal government for 2.75 years. Thus, I am not yet vested in TSP. I am going to accept a new job at a different federal agency. I have contributed the max to TSP during my employment.

My employer has matched 5% of my salary (Agency Automatic and Agency Matching Contributions) during this time.

Question - If I change agencies, will I lose any of Agency Automatic and Agency Matching Contributions?

Thank you, Eric

Edited by user Wednesday, November 24, 2021 6:16:04 PM(UTC)  | Reason: Not specified

FS0201  
#2 Posted : Wednesday, November 24, 2021 6:33:38 PM(UTC)
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Originally Posted by: 430943298743 Go to Quoted Post
Hello

I have been employed by the federal government for 2.75 years. Thus, I am not yet vested in TSP. I am going to accept a new job at a different federal agency. I have contributed the max to TSP during my employment.

My employer has matched 5% of my salary (Agency Automatic and Agency Matching Contributions) during this time.

Question - If I change agencies, will I lose any of Agency Automatic and Agency Matching Contributions?


No, not if you are moving to another federal agency. More information here.
The excuse of, "I read it on FederalSoup..." won't work. Please do your due diligence.
430943298743  
#3 Posted : Wednesday, November 24, 2021 7:12:26 PM(UTC)
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Thank you, FS0201. Your clear answer and the article you posted are helpful. It appears that my matching contributions are not at risk in making this decision.

I do have one more question on rolling over my TSP balance to a qualified IRA account. My understanding is that I can only do this only if there is a break in service. Is that correct?

If so, is there a minimum break in service? For example, could I do this with a one day break in service?

If so, my understanding is that I could transfer all of my contributions, plus the Agency Matching Contributions. But I could not transfer the Agency Automatic Contributions, as I will not be vested. Is that correct?

Finally, do you know of any downside in taking a break in service, i.e. will I be losing out on other benefits if I decide to do this?

Thanks again! I realize this is very detailed, but if you can point me in the right direction, I would appreciate it.
someoldguy  
#4 Posted : Thursday, November 25, 2021 8:03:51 AM(UTC)
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Probably not realistic with a one-day break in service. It takes a while (quite a while) for the agency to notify TSP, and TSP does not process transactions very quickly. So in practical terms it might take a couple of months.
DISCLAIMER: You read it on an open internet forum :)
430943298743  
#5 Posted : Saturday, November 27, 2021 10:12:19 PM(UTC)
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Thanks for the prompt reply!
Citrine  
#6 Posted : Sunday, November 28, 2021 6:25:44 AM(UTC)
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having a break in service might reduce the number of jobs you can apply for.
roger.d  
#7 Posted : Sunday, November 28, 2021 1:52:26 PM(UTC)
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Originally Posted by: Citrine Go to Quoted Post
having a break in service might reduce the number of jobs you can apply for.


Can you provide more information on this?
Socialist governments traditionally do make a financial mess. They always run out of other people’s money. --Margaret Thatcher
Citrine  
#8 Posted : Sunday, November 28, 2021 3:07:03 PM(UTC)
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some jobs are advertised for current employees only.
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