What other options for TSP account are available?

2019-07-22T16:26:12-04:00

So I am out and know that I cannot contribute to my TSP anymore. Unfortunately even though I did contribute while I was in I am not sure that I contributed enough. I am now employed with a company that matches 50% of deferrals of my 6% contribution. (I am now maxed at this for their contribution) I want to know if anyone has withdrawn their TSP to invest elsewhere? i.e. Vanguard, Edward Jones, T. Rowe etc. I ask as I got my quarterly statement this week and for the last quarter I earned a whopping $35. What experiences does anyone have with moving the TSP and investing it elsewhere? (For reference I only have about $6K in my TSP)

Response by CW5 Jack Cardwell made Jul 22 at 2019 4:33 PM

2019-07-22T16:33:53-04:00

How are your funds invested in TSP? You have many choices. If you move it make sure it is going into a retirement fund. Before you move it out look at the fees charged in the account you are moving into. TSP does have low fees.

Response by Capt Brandon Charters made Jul 22 at 2019 4:48 PM

2019-07-22T16:48:44-04:00

Great question. Looping in a couple folks I know who have a lot of knowledge on this topic. 2d Lt Cinthia W. LTC Steve Mannell

Response by Lt Col Scott Shuttleworth made Jul 22 at 2019 5:50 PM

2019-07-22T17:50:42-04:00

You may be able to roll it to another fund without tax or penalty. Also look to see if any or all of the contrbutions were during a deployment...if so, those contributions were and are tax free and they can just cut you a check. However, whatever you do if they give you forms to fill out carefully read every line because once the move is made, there isno turning back and could involve tax penalties. I would talk to the TSP folks directlyand let them know what your situation is and go from there. then I would talk to a certified financial counselor, not a barracks counselor like me and others here on RP. I do agree with one post though...if you decide to leave it in TSP I would roll it to another fund like the C, S, or I fund. Cheers.

Response by CAPT Kevin B. made Jul 22 at 2019 10:34 PM

2019-07-22T22:34:20-04:00

Always go to the source materials. BTW, I rolled my CS TSP at 59 1/2 to commercial management. I could do that while still employed. I then rolled the residuals out when I retired. Same risks but thousands more configurations to choose from. Tended to get 2-4% more a year at the same risk.

https://www.tsp.gov/PDF/formspubs/tspfs05.pdf

tspfs05.pdf

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Response by MSgt Michael Smith made Jul 23 at 2019 10:11 AM

2019-07-23T10:11:41-04:00

If I were you I would just wait till next year then roll it over into your 401K. That way you don't incur any penalties. That is what I did. Then I rolled it back into TSP once I got a Federal Job.