Withdrawl Help?!?!

[CFenton1982]

imported post

Well I seperated from active duty this past August, and was told thatI could transfer my tsp account to my Edward Jones Roth IRA. Is this true, if so are there any penalties? Please help because I am unable to fund my account do to the separation.



Charlie

 

[mlk_man]

imported post

You will havetorollit over to a regular IRA first then you can transfer it to a Roth once the money has been deposited. Keep in mind that once you transfer it to a Roth,you'll have to pay taxes on it because TSP is funded with pre-tax dollars were as a Roth is funded with after tax dollars. If you do not wish to pay taxes you can just keep it in your IRA.

 

[Birchtree]

imported post

CFenton 1982,

The simplest thing to do would be to leave your funds in TSP. Who knows you might end up working for Uncle in a different capacity in the future. The fees in TSP are way lower than you can find anywhere else and your account will still grow if you are an active participant. You may not be able to add funds currently, but you can surely trade if you want and make money that way. Anything you do inside a Roth IRA will cost you fees - but dividend reinvestment is a real plus if you buy individual stocks. Once you invest in the private sector you are struggling uphill constantly, everyone is willing to help for a small commission and the advice is often self motivated and not beneficial. Stay with TSP and continue to learn the ways of practical investing, all it takes is time and effort. Do a Birchtree - sit back and put your feet up and let the money and manure pile up. Take care.

Dennis

 

[Show-me]

imported post

I would agree with Dennis that the TSP is a good place for your money to “sit” with a very low fee. If you are active in managing your account I would prefer a discount broker with Traditional, ROTH, or Individual account or all three linked. Plus the investment choices are endless. I would certainly weigh how actively you plan to manage your account and your success rate.

:^

 

[CFenton1982]

imported post

Thanks for the info. Am I still eligable for allocating the funds? I read a lot of the info on this site, and would still like to swap funds throughout the TSP. Thanks Charlie.

 

[CFenton1982]

imported post

bump

 

[mlk_man]

imported post

Charlie, I moved this topic to the correct thread so that you might get a better response to your question.

Good luck,

M_M

 

[mlk_man]

imported post

My personal belief is, and I don't know this to be true or not, but as long as one has money in a TSP account they will be able to move that money aroundamong the various funds. I would think it would be illegal for them to say "your money goes here and that's that".

 

[retiredcg]

imported post

Charlie -

M_M's "personal belief" about your swapping your funds around in the TSP even after you're retired is right on the money! Sometimes it takes a little "digging" around in all that info on the TSP website to find out, but if you look at page two of this booklet:

http://www.tsp.gov/forms/tspbk02.pdf

Under the section entitled "Leaving Your Money in the TSP", the booklet mentions not only about leaving the money in the TSP (until you're forced to start withdrawing at 70.5 years old); but it also clearly speaks ofshifting around yourmoney between the funds as long as you have money in there.

BTW, I also heartily agree with Dennis about hanging on to yourTSP and the lower "maintenance" fees than other investment programs... Good luck! :^

 

[CFenton1982]

imported post

Well thanks again for the outstanding advice. I will do my best to allocate the funds accordingly while trying to obtain positive returns. I just turned 23 so well have to see how far these funds get me at 70.5 :^

 

[mlk_man]

imported post

You seem like you're on the right track Charlie. I wish I'd paid more attention when I was 23! I did seven years in the 80's and I don't think we had a TSP option. All I had was that crappy VEAP. Not even the GI bill. Oh well, no regrets, best thing I ever did!

Thanks for the info retiredcg!

Good luck guys,

M_M

 

[pyriel]

imported post

mlk_man wrote:

You seem like you're on the right track Charlie. I wish I'd paid more attention when I was 23! I did seven years in the 80's and I don't think we had a TSP option. All I had was that crappy VEAP. Not even the GI bill. Oh well, no regrets, best thing I ever did!

Thanks for the info retiredcg!

Good luck guys,

M_M

Daddy (MM),I was just crunching the numbers on how old you are but I got lost...;-)

 

[Pill]

imported post

IF POSSIBLE I WOULD GET A JOB WITH UNCLE SAM AGAIN AS A CIVILIAN! IF YOU DONT HAVE MUCH IN TSP I BELIEVE IT WOULD BE OK TO ROLL IT OVER BUT IF YOU HAVE A DECENT AMOUNT I WOULD AGREE WITH THE REST TO LEAVE IT ALONE AND STAY WITH TSP.

GOOD LUCK WITH YOUR SEPERATION AND THANKS FOR SERVING OUR COUNTRY!

 

[mlk_man]

imported post

pyriel wrote:

mlk_man wrote:

You seem like you're on the right track Charlie. I wish I'd paid more attention when I was 23! I did seven years in the 80's and I don't think we had a TSP option. All I had was that crappy VEAP. Not even the GI bill. Oh well, no regrets, best thing I ever did!

Thanks for the info retiredcg!

Good luck guys,

M_M

Daddy (MM),I was just crunching the numbers on how old you are but I got lost...;-)

If I had known I was gonna live this long, I'd of taken better care of myself....

 

[pyriel]

IF POSSIBLE I WOULD GET A JOB WITH UNCLE SAM AGAIN AS A CIVILIAN! IF YOU DONT HAVE MUCH IN TSP I BELIEVE IT WOULD BE OK TO ROLL IT OVER BUT IF YOU HAVE A DECENT AMOUNT I WOULD AGREE WITH THE REST TO LEAVE IT ALONE AND STAY WITH TSP.

GOOD LUCK WITH YOUR SEPERATION AND THANKS FOR SERVING OUR COUNTRY!

You don't have to get a job with uncle sam after you retire. Just find a retirement vehicle now that will supplement your future retirement income. Although TSP and ROTH and traditional IRA are good ways to do that, they really don't help you much if you plan on retiring earlier than 59.5 years.

This is why I like real estate. If I could get $200-$300 per properties per month in a form of passive income, I can be set for life. The main thing is to lower down the risk before getting into real estate. Just like being here at TSPTalk, we learn to lower down the risk by jumping out of stocks and going into G fund if the market is tanking. You can also minimize the risk in real estate by doing your due diligence and learning all the intricacies of real estate ownership.

If you analyze or compare returns from all of mutual funds, stocks, TSP, or ROTH portfolio against actual ownership of a passive income real estate property, you'll find out that the latter will win hands down.

Pyriel