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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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kedward777  
#1 Posted : Thursday, December 26, 2019 6:35:06 AM(UTC)
kedward777

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I will be 56 this year (MRA) with 36 years of service (4 years military conversion paid). Can I rollover a percentage of my TSP (say $150k) from my TSP to an external 401k (at my local Credit Union) prior to retiring (still may work a few more years) without paying taxes or penalties? If so where are rules written for this? How often can I rollover funds from my TSP to a 401k?

I see a lot of documents about transferring into the TSP, but the TSP site is very quiet about rolling over funds out of the TSP...

Edited by user Thursday, December 26, 2019 6:40:23 AM(UTC)  | Reason: Not specified

Endless Summer  
#2 Posted : Thursday, December 26, 2019 6:51:08 AM(UTC)
Endless Summer

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Originally Posted by: kedward777 Go to Quoted Post
I will be 56 this year (MRA) with 36 years of service (4 years military conversion paid). Can I rollover a percentage of my TSP (say $150k) from my TSP to an external 401k (at my local Credit Union) prior to retiring (still may work a few more years) without paying taxes or penalties? If so where are rules written for this? How often can I rollover funds from my TSP to a 401k?

I see a lot of documents about transferring into the TSP, but the TSP site is very quiet about rolling over funds out of the TSP...


From what I've been able to find you can make "Age Based In-Service Withdrawals" at age 59.5. The money is not taxed if you take it from a traditional IRA in your TSP and put it into a traditional IRA.

That seems to be the only option to accomplish what you were trying to do.
someoldguy  
#3 Posted : Thursday, December 26, 2019 7:28:29 AM(UTC)
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Originally Posted by: kedward777 Go to Quoted Post
I see a lot of documents about transferring into the TSP, but the TSP site is very quiet about rolling over funds out of the TSP...
This topic made me want to do a little digging... here's a link to a document about doing a rollover OUT of TSP:

Transfers From the Thrift Savings Plan to Eligible Retirement Plans (TSPFS5)

That document is not exactly crystal-clear but apparently you can only make an "eligible rollover" based on age or after you separate from service.

I guess that means that the TSP is set up rather differently from a regular IRA/401(k)

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