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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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Alteredkarma  
#1 Posted : Tuesday, April 2, 2019 4:56:12 AM(UTC)

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I am still several years away from retiring and I am wondering if it is possible to move mt TSP funds out of the TSP to another IRA (non-government) prior to retirement? I have searched the internet, but I cannot find anything definitive that states yes or no. Can anyone shed some light on this? Are my TSP funds locked from movement until I retire?
TheRealOrange  
#2 Posted : Tuesday, April 2, 2019 5:28:11 AM(UTC)
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Originally Posted by: Alteredkarma Go to Quoted Post
I am still several years away from retiring and I am wondering if it is possible to move mt TSP funds out of the TSP to another IRA (non-government) prior to retirement? I have searched the internet, but I cannot find anything definitive that states yes or no. Can anyone shed some light on this? Are my TSP funds locked from movement until I retire?

I believe that situation is covered by the TSP's "in-service withdrawal" rules. There are two types of in-service withdrawals: (1) financial hardship withdrawals; and, (2) age-based withdrawals. Since you did not indicate any financial hardship, my guess is that you would have to qualify for an age-based withdrawal. To qualify for that one-time withdrawal, you would have to be at least age 59½ while you are still employed. With an age-based withdrawal, you are required to pay income tax on the taxable portion of your withdrawal unless you transfer or roll it over to an IRA or other eligible employer plan, which you appear to want to do. Unless you are age 59½, I do not think you can make a rollover withdrawal of the type you desire. That's just my best guess based on the TSP informaiton available, so perhaps other here will know more.

Edited by user Tuesday, April 2, 2019 10:23:31 AM(UTC)  | Reason: Not specified

thanks 1 user thanked TheRealOrange for this useful post.
10years2retire on 4/2/2019(UTC)
ObiOne  
#3 Posted : Thursday, May 9, 2019 1:17:47 PM(UTC)
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Your question is slightly flawed because you ask if you can "move my TSP funds out of the TSP to another IRA (non-government)" The TSP is not an IRA. It is the equivalent of a 401k. So are you asking if you can move it to another 401K account? Generally you can, though it would probably be foolish to since the TSP has some of the lowest management costs out there. And you are talking about a roll-over, I think, not a withdrawal, as the previous poster assumed.
This website explains roll overs pretty well: https://finance.zacks.co...p-private-401k-1238.html

Edited by user Thursday, May 9, 2019 1:19:10 PM(UTC)  | Reason: Not specified

Rikaku  
#4 Posted : Wednesday, July 24, 2019 2:31:43 AM(UTC)

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It would be a roll over, and relatively easy to do.

I disagree with the poster saying it would be foolish to do. The days of TSP being the best in class for low fees are pretty much over. TSP expense ratios are low, for sure, but so are other firms like Vanguard and Fidelity. The C fund has an expense ratio of 0.04%; the same fund at Vanguard (VOO) has an expense ratio of 0.03%. By rolling over to an IRA you gain diversity in investments and easier access to your money.
teeeeej  
#5 Posted : Monday, July 29, 2019 3:11:39 PM(UTC)
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Originally Posted by: Rikaku Go to Quoted Post
It would be a roll over, and relatively easy to do.

I disagree with the poster saying it would be foolish to do. The days of TSP being the best in class for low fees are pretty much over. TSP expense ratios are low, for sure, but so are other firms like Vanguard and Fidelity. The C fund has an expense ratio of 0.04%; the same fund at Vanguard (VOO) has an expense ratio of 0.03%. By rolling over to an IRA you gain diversity in investments and easier access to your money.


No G Fund equivalent at Vanguard. You might want access to the G Fund when you are retired.
roger.d  
#6 Posted : Tuesday, July 30, 2019 4:50:10 AM(UTC)
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The G Fund is listed as a short term treasury investment.


G Fund as of Dec 2018 expense ratio .04%

1yr---------5yr---------10yr--------inception
2.91$------2.35%-----2.28%-------5.03% (4/01/1987)


Vanguard Short Term Treasury expense ratio .20%

1yr--------5yr-------10yr--------inception
4.07%---1.19%----1.28%----3.90% (10/28/1991)



Vanguard Long Term Treasury. expense ratio .20% as of 6/30/2019
1yr----------5yr------10yr ---- inception
12.10%----5.53%----6.32%-----7.56% (05/19/1986)


Might be a Fugi to Braeburn apple comparison because of the different "as of" time frame. May need to revisit this at the 1st of the year.









Learn to discipline yourself, so someone else doesn't have to
teeeeej  
#7 Posted : Wednesday, July 31, 2019 4:32:26 PM(UTC)
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Originally Posted by: roger.d Go to Quoted Post
The G Fund is listed as a short term treasury investment.


G Fund as of Dec 2018 expense ratio .04%

1yr---------5yr---------10yr--------inception
2.91$------2.35%-----2.28%-------5.03% (4/01/1987)


Vanguard Short Term Treasury expense ratio .20%

1yr--------5yr-------10yr--------inception
4.07%---1.19%----1.28%----3.90% (10/28/1991)



Vanguard Long Term Treasury. expense ratio .20% as of 6/30/2019
1yr----------5yr------10yr ---- inception
12.10%----5.53%----6.32%-----7.56% (05/19/1986)


Might be a Fugi to Braeburn apple comparison because of the different "as of" time frame. May need to revisit this at the 1st of the year.





Absolutely the wrong comparison. G Fund is more like a Stable Value fund. Like a money market fund with better guaranteed interest rate.

It is not at all equivalent to a short or long term treasury bond fund. Both of which are subject to massive principal loss should interest rates increase. G Fund will not have principal loss.
roger.d  
#8 Posted : Saturday, August 3, 2019 3:46:07 AM(UTC)
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Originally Posted by: teeeeej Go to Quoted Post
Originally Posted by: roger.d Go to Quoted Post
The G Fund is listed as a short term treasury investment.


G Fund as of Dec 2018 expense ratio .04%

1yr---------5yr---------10yr--------inception
2.91$------2.35%-----2.28%-------5.03% (4/01/1987)







Absolutely the wrong comparison. G Fund is more like a Stable Value fund. Like a money market fund with better guaranteed interest rate.

It is not at all equivalent to a short or long term treasury bond fund. Both of which are subject to massive principal loss should interest rates increase. G Fund will not have principal loss.


Thank you for your input.


The Battelle Stable Value Fund seeks to provide current and stable income, while maintaining a stable share value of $1.

Vanguard Battelle StableValue Fund. ER: .24

1yr------------3yr-------------5yr---------10yr---------inception 6/96

2.73%-------2.57%-------2.64%--------3.07----------4.60%

Returns as of 6/30/2019

Edited by user Saturday, August 3, 2019 3:49:54 AM(UTC)  | Reason: Format

Learn to discipline yourself, so someone else doesn't have to
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