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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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VAer1  
#1 Posted : Saturday, October 17, 2020 10:56:26 AM(UTC)
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Can I transfer part of "TSP Roth Balance" to "Roth IRA"? If yes, how should I do that? How much is penalty?

Still in service, in my 40s, not qualified for withdraw. But the question is about transferring. I really would like to move some TSP Roth Balance to Roth IRA, so that I can directly investing on stock, instead of limited TSP Plans. I would like to take some risk to invest TSP Roth money(transferring some of balance, not all).

Thanks.
roger.d  
#2 Posted : Saturday, October 17, 2020 4:35:44 PM(UTC)
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https://www.google.com/u...aw2gAta2CmzTvK000EapbXwO


I believe it is only possible if you are age. 59.5

Are you maxing out your IRA?
VAer1  
#3 Posted : Sunday, October 18, 2020 5:33:58 AM(UTC)
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Originally Posted by: roger.d Go to Quoted Post
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.tsp.gov/publications/tspfs05.pdf&ved=2ahUKEwi--fCs77zsAhWIZs0KHTe8Cy8QFjALegQIFRAB&usg=AOvVaw2gAta2CmzTvK000EapbXwO


I believe it is only possible if you are age. 59.5

Are you maxing out your IRA?


The age 59.5 requirement sounds like withdrawing, but my question is transferring to Roth IRA.

Yes, max out already. But it is more about transferring money out of Roth TSP to IRA Roth, so that I can take more control of the TSP money.
roger.d  
#4 Posted : Sunday, October 18, 2020 6:54:17 AM(UTC)
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As I stated, I do not believe you can make a transfer to an IRA while you are working. There is no information on the TSP website about transferring funds to an IRA while you are employed by the government.

Contact the TSP office for their answer.

ThriftLine: 1-877-968-3778 (toll free) (M - F) 7:00 a.m. to 9:00 p.m., eastern time
TheRealOrange  
#5 Posted : Monday, October 19, 2020 3:22:16 AM(UTC)
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Originally Posted by: VAer1 Go to Quoted Post
Can I transfer part of "TSP Roth Balance" to "Roth IRA"? If yes, how should I do that? How much is penalty?

Still in service, in my 40s, not qualified for withdraw. But the question is about transferring. I really would like to move some TSP Roth Balance to Roth IRA, so that I can directly investing on stock, instead of limited TSP Plans. I would like to take some risk to invest TSP Roth money(transferring some of balance, not all).

Thanks.

I don't think you can do a rollover/transfer until you leave federal service. Note that a transfer is simply a type of withdrawal with varying tax consequences. From TSP:

Transferring or rolling over your withdrawal

After you leave federal service, you may be able to transfer or roll over all or part of your partial or full withdrawal amount to an IRA or eligible employer plan.

I could not find anything indicating that you could make such a transfer while still employed unless you have already reached age 59 1/2 (age-based in-service withdrawal). Your best bet probably would be to contact TSP directly and discuss your options.
VAer1  
#6 Posted : Tuesday, October 20, 2020 3:06:43 AM(UTC)
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Originally Posted by: TheRealOrange Go to Quoted Post
Originally Posted by: VAer1 Go to Quoted Post
Can I transfer part of "TSP Roth Balance" to "Roth IRA"? If yes, how should I do that? How much is penalty?

Still in service, in my 40s, not qualified for withdraw. But the question is about transferring. I really would like to move some TSP Roth Balance to Roth IRA, so that I can directly investing on stock, instead of limited TSP Plans. I would like to take some risk to invest TSP Roth money(transferring some of balance, not all).

Thanks.

I don't think you can do a rollover/transfer until you leave federal service. Note that a transfer is simply a type of withdrawal with varying tax consequences. From TSP:

Transferring or rolling over your withdrawal

After you leave federal service, you may be able to transfer or roll over all or part of your partial or full withdrawal amount to an IRA or eligible employer plan.

I could not find anything indicating that you could make such a transfer while still employed unless you have already reached age 59 1/2 (age-based in-service withdrawal). Your best bet probably would be to contact TSP directly and discuss your options.


Thanks.

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