If I quit my job

[Afishegg]

Question. Recently I recieved my TSP quarterly news letter in the mail and I believe it mentioned that if I quit the fed gov and go to work somewhere else (say home depot) where they offer a 401k plan, I can just opt to have them move the money I allocate and the money my employer matches into my tsp. In effect I keep my tsp and get to "replace" my current employers plan with my tsp plan and still get my employers match invested into my tsp, it's as if I never left the government. I perused the tsp.gov website but it is a little vague to me. Anyone know for sure the answer?

 

[Birchtree]

You can take your deferred comp plan (TSP) to your new employer and if you leave and go back to your Uncle - then the plan can follow you. It's mobile investing for your retirement. However, if you take a Roth 401K plan you cannot mix tax deferred with a post tax plan. A Roth 401K plan is relatively new and the absolute best way to go - although there is no AGI reduction as you would get with TSP. Deferred compensation is just that - you eventually have to pay the tax on distribution.

 

[KevinD]

I don't think you can do what you describe. If you quit the Gov you can transfer your TSP to your new employer's 401K or you can keep your TSP where it is. But you can't add money to TSP till you separate from the new employer.

Say you work for HD for a while and have some money in their 401K. Then you quit and go to work for Lowes. You can move your HD 401K to the TSP but not till after you quit.

Then there are the deferred comp rules Birch was talking about.