Roll overs?

[JTH]

Tom, or anyone else whop can answer this question, I have a friend who retired out of the miltary, here's the question.

Can the TSP account be rolled over to a 401k. Or must it be rolled to a Roth or traditional IRA. If not, what's the best course of action to take?

 

[Cheng]

You might find the answer here:

http://militaryfinancenetwork.com/2009/12/09/thrift-savings-plan-tsp-ira-rollover/

 

[Frixxxx]

JTH,

http://tsp.gov/uniserv/features/chapter13.html

Is the military options and covers this topic. More informaiton than I care to post.

If it is a deferred tax investment, it will be elligible to be rolled over to a different tax deferred acccount.

If rolled into a Roth, it willbe cashed out, taxed, then moved.

Rod is the expert for Active duty, but he's been quiet for a few months!

Hope this helps!

 

[tsptalk]

From www.tsp.gov

You can request a partial withdrawal in an amount of $1,000 or more. Partial withdrawals are paid only as a single payment. You can have the TSP transfer all or part of the payment to a traditional IRA, eligible employer plan, or Roth IRA (if you are eligible).

An eligible retirement plan is either a traditional IRA, eligible employer plan, or Roth IRA.

A "traditional IRA" is an individual retirement account that accepts before-tax dollars. You will not pay tax on the money you transfer to a traditional IRA until you withdraw it. A traditional IRA is described in § 408(a) of the I.R.C. or an individual retirement annuity described in I.R.C. § 408(b). It does not include a Roth IRA, a SIMPLE IRA, or a Coverdell Education Savings Account (formerly known as an education IRA).

An "eligible employer plan" includes a plan qualified under Internal Revenue Code (I.R.C.) § 401(a), including a § 401(k) plan, profit-sharing plan, defined benefit plan, stock bonus plan, and money purchase plan; an I.R.C. § 403(a) annuity plan; an I.R.C. § 403(b) tax-sheltered annuity; and an eligible I.R.C. § 457(b) plan maintained by a governmental employer.

A “Roth IRA” accepts only after-tax dollars, but provides tax-free earnings. In addition, there are certain rules and restrictions that apply to a Roth IRA. You are not eligible for a Roth transfer if either of the following conditions applies: (1) your modified adjusted gross income is over $100,000 or (2) you are married and file a separate return. Further, you must pay taxes on the funds you transfer to a Roth IRA; the tax liability is incurred for the year of the transfer.