TSP Rollover Options

[kannon8833]

I may be in a situation where I can retire at either my MRA of 56 or perhaps even at 55 due to early voluntary retirement. I am in FERS and would like to transfer my TSP to a traditional IRA with a financial service provider to have more options of investing the money.

What are my options, if any?

The tsp.gov site information is not clear to me. When I read it sounds that, unless some unusual circumstances (like medical or death), that I cannot do a rollover to a traditional IRA until I reach 59 1/2 yrs old. That means I have to let the money stay in for 3 or 4 yrs after I retire.

Is our money trapped until 59 1/2?? So much for fly fishing at age 57.

Thanks

 

[ocean]

kannon,

You can rollover to IRA using TSP-77 form once you leave the government position either retiring or something else. No need to wait until you reach 59 1/2. I was in the same boat that I retired in Sep 2011 at 56 under FERS. I transferred most of my TSP fund to IRA and the process took less than 1 month. Now I am managing my own portfolio with dividend income in mind. Good luck to you.

Ocean

 

[Boghie]

kannon,

You can rollover to IRA using TSP-77 form once you leave the government position either retiring or something else. No need to wait until you reach 59 1/2. I was in the same boat that I retired in Sep 2011 at 56 under FERS. I transferred most of my TSP fund to IRA and the process took less than 1 month. Now I am managing my own portfolio with dividend income in mind. Good luck to you.

Ocean

Steel On Target, Ocean. When you separate from Federal Service you can roll your TSP (which is really just a 401(k)) to a Traditional IRA - whether self-directed or managed. The reason for separation does not matter. You can even keep it in the TSP holding account and still manage it as you do now.

However, just to be clear, the pension portion of your retirement (FERS) is not vested till you attain a year count in Federal Service. Personally, I would prefer a higher match than a pension for this reason. Your TSP (401(k)) is yours and no politician can jigger it and the vesting is short. Your TSP assets are in Al Gore's 'Lock Box'.

By the way Ocean, thank you for the AutoTracker tool. It is a great tool for investing. And, it is a fun tool for competition - just not this year for me at least. I'm keeping silent. Nobody wants to buy my investment letter anymore.

 

[Scout333]

kannon,

You can rollover to IRA using TSP-77 form once you leave the government position either retiring or something else. No need to wait until you reach 59 1/2. I was in the same boat that I retired in Sep 2011 at 56 under FERS. I transferred most of my TSP fund to IRA and the process took less than 1 month. Now I am managing my own portfolio with dividend income in mind. Good luck to you.

Ocean

Ocean and fellow TSP'rs, Spouse has recently retired and is considering rolling her 401K into a regular IRA. Any suggestions for providers? She's not a frequent flyer and tends to leave her funds alone. Safety and convenience are big considerations, as well as low fees, etc.

 

[Kaufmanrider]

If I retire, I know I can rollover my TSP into an IRA, but can I take 72T (monthly payment on life expectancy) and still be able to depost money into the account?

I can retire next year (49 LEO, 25years Gov. plus 6 military). I might work part time, and I might not. If I take monthly payments and I have extra money at the end of the year (or if I have part time employment money) can I contribute up to the 5,000 limit while taking 72T distributions?



Thanks,