Greatheart
New member
Anyone know if you can transfer your TSP funds to an IRA while still in service? I am a CSRS employe in case that might make a difference.
Thanks
Thanks
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Transfer from TSP to IRA while still in service
- Thread starter Greatheart
- Start date
W
Wizard
Guest
I am confused by your question because of the "service" part. Are you dual? I.E. Military reserve and fed?
If you are just fed you can not do a roll over/transfer until your employment has terminated or you retire.
If you are just fed you can not do a roll over/transfer until your employment has terminated or you retire.
mlk_man
Banned
I blelieve you can only do this if you are over 59 and half.
How will my in-service withdrawal be taxed?
Age-based in-service withdrawal payments are considered "eligible rollover distributions" for Federal income tax purposes and, as such, are subject to mandatory 20 percent Federal income tax withholding. However, you can avoid withholding on all or any portion of an age-based in-service withdrawal payment by transferring it directly to a traditional IRA or eligible employer plan.
A financial hardship in-service withdrawal is considered a non-periodic payment for Federal income tax purposes. The TSP will withhold 10% for Federal income tax from these payments unless you submit IRS Form W-4P, Withholding Certificate for Pension or Annuity Payments, requesting a different amount of withholding or a waiver of withholding. (Form W-4P must be submitted to the TSP with your in-service withdrawal request.) In addition, if you make a financial hardship in-service withdrawal before age 59½, you may be subject to a 10 percent early withdrawal penalty tax. This penalty tax is in addition to the ordinary income tax you will have to pay. Financial hardship in-service withdrawals are not eligible to be transferred.
For more detailed information about the tax rules affecting in-service withdrawals, read the tax notice "Important Tax Information About TSP In-Service Withdrawal Payments."
How will my in-service withdrawal be taxed?
Age-based in-service withdrawal payments are considered "eligible rollover distributions" for Federal income tax purposes and, as such, are subject to mandatory 20 percent Federal income tax withholding. However, you can avoid withholding on all or any portion of an age-based in-service withdrawal payment by transferring it directly to a traditional IRA or eligible employer plan.
A financial hardship in-service withdrawal is considered a non-periodic payment for Federal income tax purposes. The TSP will withhold 10% for Federal income tax from these payments unless you submit IRS Form W-4P, Withholding Certificate for Pension or Annuity Payments, requesting a different amount of withholding or a waiver of withholding. (Form W-4P must be submitted to the TSP with your in-service withdrawal request.) In addition, if you make a financial hardship in-service withdrawal before age 59½, you may be subject to a 10 percent early withdrawal penalty tax. This penalty tax is in addition to the ordinary income tax you will have to pay. Financial hardship in-service withdrawals are not eligible to be transferred.
For more detailed information about the tax rules affecting in-service withdrawals, read the tax notice "Important Tax Information About TSP In-Service Withdrawal Payments."
mlk_man
Banned
What are the rules for an age-based withdrawal?
While you are employed by the Federal Government, you can make a one-time-only withdrawal of all or any portion of your vested account balance if you are 59½ or older. Your request must be for at least $1,000 or for your entire vested account balance (even if your balance is less than $1,000).
If you make an age-based withdrawal from your account, you will not be eligible for a partial withdrawal from that account after you separate from service.
While you are employed by the Federal Government, you can make a one-time-only withdrawal of all or any portion of your vested account balance if you are 59½ or older. Your request must be for at least $1,000 or for your entire vested account balance (even if your balance is less than $1,000).
If you make an age-based withdrawal from your account, you will not be eligible for a partial withdrawal from that account after you separate from service.
W
Wizard
Guest
Did not know about the 59.5 rule.
Good stuff. Wonder if that rule will be around 28 years from now?
Good stuff. Wonder if that rule will be around 28 years from now?
W
Wizard
Guest
mlk_man said:I"m sure we'll be working under a different system by then. How did it work on Star Trek? I don't remember them even getting paychecks.........
Are using the bathroom.
Greatheart
New member
Sorry about the confusion
I am a fed. No military service. I just wanted to know if there was any way to take my TSP out and transfer it to an IRA while still working. I was pretty sure I couldn't do it but I figured I'd ask anyway. I am doing much,much better in my IRA's and would like to add my TSP to that pot. Guess I will just leave it all in the I fund.
Thanks for answering
Wizard said:
I am a fed. No military service. I just wanted to know if there was any way to take my TSP out and transfer it to an IRA while still working. I was pretty sure I couldn't do it but I figured I'd ask anyway. I am doing much,much better in my IRA's and would like to add my TSP to that pot. Guess I will just leave it all in the I fund.
Thanks for answering
divgolfish
New member
Re: Sorry about the confusion
Hi I am about to retire and was thinking of rolloing over to an IRA. You said you have done much better with the IRA. What are you working with to do better? Stocks , Indexes , or Mutual funds. Thanks
Hi I am about to retire and was thinking of rolloing over to an IRA. You said you have done much better with the IRA. What are you working with to do better? Stocks , Indexes , or Mutual funds. Thanks
