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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 02, 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 02, 2019 5:28:11 AM(UTC)
TheRealOrange

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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 02, 2019 10:23:31 AM(UTC)  | Reason: Not specified

thanks 1 user thanked TheRealOrange for this useful post.
10years2retire on 4/2/2019(UTC)
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