I’ve called reps at the TSP several times over the last couple weeks and I didn’t have the same response. Several reps were definitely lacking in financial information (sounded like reading off a script). Anyway, they understood rollover directly to an institution as a transfer. The indirect rollover option is where they send you a check and withhold taxes.
Hi Haws, I just turned 59 1/2, called TSP to move my TSP balance to IRA and TSP customer service call it a rollover out to a IRA. TSP mails a check directly to Fidelity to both traditional and Roth accounts. It does take a week to establish the accounts and another week or two for the checks to be processed / mailed to Fidelity.
Really? They actually called it a roll over? So I guess we both contribute Roth and traditional, so they figure out what each was after all that time. Very interesting. That's exactly what I want to do with my TSP too. I think that you made a wise decision. Thanks for the insight.
They will mail checks to a Roth? I guess moving Roth $ to a Roth account? TSP denies they will do conversions, so I’ve assumed they won’t send a check from traditional to a Roth account, or., have they changed their rules? That would make Roth conversions a lot easier!
In the military I had TSP, not that I’m out I have a 401k. Should I Transfer those fund from TSP to my 401K or best to leave it in there? It’s not much, like 5k.
Noooooo I am locked out of my account I changed my phone and email literally was on the phone with them for hours they are terrible the new website is garbage my password doesn’t work it’s just a nightmare I am getting my cash out into schwab gonna do a transfer I am still in the feds but gonna get it over into Schwab’s ira
I recently used the updated TSP website to make a partial withdrawal and direct Trustee to Trustee transfer from my TSP 401(k) [pre-tax] account into my Roth IRA [post-tax]. I transferred the full amount rather than having TSP or new Trustee withholding because I have monies set aside to pay the taxes. My Roth IRA Trustee has classified the receipt of the money as a Roth Conversion Direct Purchase and will document this on an IRS Form 5498. My concern revolves around TSP’s documentation: TSP classifies any type of action other than withdrawal as a Rollover regardless if it going to another 401(k) / Traditional IRA or a Roth IRA. The IRS instructions seem to consider what I have done as a Normal Distribution (CODE 7) vs a Direct Rollover (CODE G). Which is correct? How to I (and through this help others) to ensure I/we do not run afoul of the IRS? Thanks in Advance.
What is the tax form we need from our IRA firm to show we made up the 20% out of our own pocket when the TSP sent us a 80% rollover check instead of standing directly to our bank? We funded the full 100% into an IRA but had to make up the 20% ourselves because of their mistake.
His explanation was bit sloppy as he mixed converting before 72 and converting after 72. So answer to your question is yes but you likely don't want to convert entire traditional TSP or 401(k) to Roth as you're better off having *_some_* traditional TSP/IRA money.
I have a question for you I am a new federal employer and I have been investing in my TSP. I have a Roth IRA with the Audi so my question is should O transfer it all into the tsp?
@@willart4552 Also your spouse is entitled to half of your TSP if you get divorced. For example I had to have my wife sign in agreement that she was ok with me transferring funds out of my TSP. So I would go first to the ROTH IRA then to the ROTH TSP.
GREAT VIDEO. I have a Roth IRA account. So will the TSP allow me to transfer from my traditional TSP account to my Roth IRA account since I don't have a traditional IRA account?
When opening an IRA do I need to make a Traditional IRA account or the Rollover IRA account before transferring the TSP 401k over? The TSP I have has both Traditional and Roth, so would I also need to make a Roth IRA account before transferring?
I'm so confused haven't seen this addressed anywhere. So what if I want to transfer money from TSP to a traditional IRA, but my IRA is not tax deductible because my income is too high. So what happens then? The money in my Traditional IRA is after tax so can pre-tax money coexist in the same IRA as after-tax money?
When you retire or leave GOV employment you may move your traditional TSP to traditional IRA. It may be easier to to move your t-TSP to a different IRA custodian then your current t-IRA custodian.
If I do a transfer from traditional TSP to traditional IRA do I have to transfer the whole balance at once or can I do multiple transfers over several years? I'm special provisions and going to retire at age 50 but don't want to lock up all my money in a new IRA until age 59 1/2
Are there any "gotchas" with doing a direct transfer from TSP IRA to a fidelity IRA? For instance, if don't leave enough in TSP, will they close my account? What about if I want to transfer back from fidelity to the TSP later on, are there any tax implications or characterization implications? For instance, in maryland they don't tax 401k withdrawls, but they do tax ira withdrawls, will I affect this Maryland tax advantage if I move in/out/in of TSP?
Great questions! There's a lot of details to discuss within these questions. We would be happy to meet with you one-on-one to help discuss these with you. If it's any extra help, here is a link to more TSP videos: TSP Videos: hawsfederaladvisors.com/tsp-investing-articles/ One-on-one Meeting: hawsfederaladvisors.com/work-with-us/
@@howardkenneth5569 You need to keep $200 minimum balance to keep TSP account otherwise if it drops below $200, they'll cut you check for sub-$200 amount and close your account. Suggest you keep at least $200 in G Fund since G Fund doesn't drop. Transferring from traditional TSP to traditional IRA or vice versa is not a federal taxable event.
Have searched everywhere to no avail. I am retired Fed with a traditional TSP account only and age 64. Can I make a partial transfer of my TSP to fund a Crypto IRA while the remaining funds remain in TSP?
Hey Dallen I'm new to your channel. I'm a federal employee more specifically I'm a Federal Police Officer. Heres my question, can I convert my traditional TSP contributions to a Roth TSP. If yes how do I do that? Thanks
Hi Haws, I have a question related to ROTH IRA. People who make too much money can't contribute to ROTH IRA. (I know people can do backdoor ROTH.) I'm wondering why? What's their purpose for doing that? Thanks!
I had a Retirement documents preparation to the Postal Service with the help of a Rep from Postal Benefit Group yesterday. She advised me to Rollover 80% of my TSP to Fidelity and Guaranty with a guaranteed 13% gain the first year which I will have no access to the money for that period and after that I can start withdrawing anytime or continue investing with them. Is this normal? They have been in the business of helping Postal Employees for the last 15 years. Any suggestions or similar experience? Not sure if it's the right approach. Thanks
Iam 59.5 yrs I plan on working until 66 yrs. I have a 45K sitting in a Madison group IRA (45K). Can I transfer the IRA into my TSP or should I keep it where its at.
I f I convert my private Traditional to ROTH, is there limits or restrictions other than being age 59 1/2 + on with drawing the funds, would I be able to make withdraws from my ROTH within the first year? I thought I read something about conversion money needed to be in the ROTH for a certain length of time.
72 is the age , for RMD. Could you please tell us what that number or percentage is, that you will be required to take out at 72. Base it on an easy number. Let's say 500,000. What would be the RMD at age 72 for that amount? Thank you for your help and videos. You're doing a great job.
@@PlanYourFederalBenefits Is this true even for uniformed service members? I am recently retired from the Marines (age 47) and am contemplating transferring my TSP over to my Vanguard Traditional IRA. My other question is does all this still apply even if I have tax-exempt contributions inside my TSP?
So I'm thinking about TRANSFERING my TSP to a traditional IRA in the future. But I have $60k in my TSP (traditional), but now any future money I put in there from my check (10%) goes to the ROTH TSP. The USPS puts 5% match in the traditional side of my TSP. I know, it's complicated. And everything gets put into the same pile ($60k) . I don't like the idea of MDA that the TSP forces on your retirement account, and the limited amount of investment funds. Thanks for all the free information!
When you do a rollover it will ask you if you want $ to come out of ONLY traditional, ONLY Roth, or the proportion of your account .. I cannot think of any reason to pick that last option.
Different subject:::When you do a withdraw from the TSP i know that the Fed takes 20% but will the TSP folks send a percentage to your state to cover there taxes?
Likely better to move your traditional TSP to traditional IRA so you avoid the immediate 20% Federal tax bite. As already answered state tax is not automatically removed.
@@alrocky Withdrawals from a rollover IRA will also require paying taxes. The IRA company may not withhold the taxes, so the individual will need to pay estimated quarterly taxes themselves. Six in one hand, half a dozen in the other.
How do I avoid capital gains, should I change my tsp to a Ira or move to a tax free state before retirement? I own a home right now so can I keep my home and do the Ira or sell my home and move to a tax free state? What recommendations do you have
I’ve called reps at the TSP several times over the last couple weeks and I didn’t have the same response. Several reps were definitely lacking in financial information (sounded like reading off a script). Anyway, they understood rollover directly to an institution as a transfer. The indirect rollover option is where they send you a check and withhold taxes.
The TSP is grossly incompetent.
Hmmm
Love your videos always learn something Keep them coming
Glad they are helpful!
Hi Haws, I just turned 59 1/2, called TSP to move my TSP balance to IRA and TSP customer service call it a rollover out to a IRA. TSP mails a check directly to Fidelity to both traditional and Roth accounts. It does take a week to establish the accounts and another week or two for the checks to be processed / mailed to Fidelity.
Really? They actually called it a roll over? So I guess we both contribute Roth and traditional, so they figure out what each was after all that time. Very interesting. That's exactly what I want to do with my TSP too. I think that you made a wise decision. Thanks for the insight.
@@joseCalderon1976 yes and no tax paid on the traditional TSP transfer since both are traditional retirement investment accounts.
They will mail checks to a Roth? I guess moving Roth $ to a Roth account? TSP denies they will do conversions, so I’ve assumed they won’t send a check from traditional to a Roth account, or., have they changed their rules? That would make Roth conversions a lot easier!
In the military I had TSP, not that I’m out I have a 401k. Should I Transfer those fund from TSP to my 401K or best to leave it in there? It’s not much, like 5k.
Noooooo I am locked out of my account I changed my phone and email literally was on the phone with them for hours they are terrible the new website is garbage my password doesn’t work it’s just a nightmare I am getting my cash out into schwab gonna do a transfer I am still in the feds but gonna get it over into Schwab’s ira
Great to learn this stuff now, thanks!
I recently used the updated TSP website to make a partial withdrawal and direct Trustee to Trustee transfer from my TSP 401(k) [pre-tax] account into my Roth IRA [post-tax]. I transferred the full amount rather than having TSP or new Trustee withholding because I have monies set aside to pay the taxes. My Roth IRA Trustee has classified the receipt of the money as a Roth Conversion Direct Purchase and will document this on an IRS Form 5498.
My concern revolves around TSP’s documentation: TSP classifies any type of action other than withdrawal as a Rollover regardless if it going to another 401(k) / Traditional IRA or a Roth IRA. The IRS instructions seem to consider what I have done as a Normal Distribution (CODE 7) vs a Direct Rollover (CODE G). Which is correct? How to I (and through this help others) to ensure I/we do not run afoul of the IRS? Thanks in Advance.
Am I allowed to Transfer money into my TSP after I retire?
What is the tax form we need from our IRA firm to show we made up the 20% out of our own pocket when the TSP sent us a 80% rollover check instead of standing directly to our bank? We funded the full 100% into an IRA but had to make up the 20% ourselves because of their mistake.
I don’t believe that an IRA rollover triggers a tax event .. are you thinking of a withdrawal?
Re: mistake #3...so if you want to move your TSP to a Roth, the full transfer must be complete before RMD kicks in at age 72?
His explanation was bit sloppy as he mixed converting before 72 and converting after 72. So answer to your question is yes but you likely don't want to convert entire traditional TSP or 401(k) to Roth as you're better off having *_some_* traditional TSP/IRA money.
@@alrocky thank you.
What you didn't cover is the fact that your ROTH TSP growth is reclassified as Traditional if you transfer it before the age of 69 and 1/2.
59.5
I have a question for you I am a new federal employer and I have been investing in my TSP. I have a Roth IRA with the Audi so my question is should O transfer it all into the tsp?
I would transfer it out to a Roth IRA at fidelity or Schwab etc
@@willart4552 Sorry for the typo.
@@willart4552 Also your spouse is entitled to half of your TSP if you get divorced. For example I had to have my wife sign in agreement that she was ok with me transferring funds out of my TSP. So I would go first to the ROTH IRA then to the ROTH TSP.
GREAT VIDEO.
I have a Roth IRA account. So will the TSP allow me to transfer from my traditional TSP account to my Roth IRA account since I don't have a traditional IRA account?
Yes but you'll have to pay taxes on it. I think it will also count as income so can bump you into a higher tax bracket.
I would transfer it to a traditional ira first and then plan the conversion with a cpa to limit your tax liability.
When opening an IRA do I need to make a Traditional IRA account or the Rollover IRA account before transferring the TSP 401k over? The TSP I have has both Traditional and Roth, so would I also need to make a Roth IRA account before transferring?
Thank you.
I'm so confused haven't seen this addressed anywhere. So what if I want to transfer money from TSP to a traditional IRA, but my IRA is not tax deductible because my income is too high. So what happens then? The money in my Traditional IRA is after tax so can pre-tax money coexist in the same IRA as after-tax money?
When you retire or leave GOV employment you may move your traditional TSP to traditional IRA. It may be easier to to move your t-TSP to a different IRA custodian then your current t-IRA custodian.
Thanks !!!!
Is there a way for finding out how much your RMD will be?
Yes, there is a table that the IRS puts out
If I do a transfer from traditional TSP to traditional IRA do I have to transfer the whole balance at once or can I do multiple transfers over several years? I'm special provisions and going to retire at age 50 but don't want to lock up all my money in a new IRA until age 59 1/2
No. It will ask you if you want to transfer the whole amount or only a portion.
Might want to put a battery in that clock!
I didn't like the ticking :)
What is the allowable contribution to a roth prior to age 72?
ROTH TSP OR ROTH IRA?
Are there any "gotchas" with doing a direct transfer from TSP IRA to a fidelity IRA? For instance, if don't leave enough in TSP, will they close my account? What about if I want to transfer back from fidelity to the TSP later on, are there any tax implications or characterization implications? For instance, in maryland they don't tax 401k withdrawls, but they do tax ira withdrawls, will I affect this Maryland tax advantage if I move in/out/in of TSP?
Great questions! There's a lot of details to discuss within these questions. We would be happy to meet with you one-on-one to help discuss these with you. If it's any extra help, here is a link to more TSP videos:
TSP Videos: hawsfederaladvisors.com/tsp-investing-articles/
One-on-one Meeting: hawsfederaladvisors.com/work-with-us/
@@PlanYourFederalBenefits How much do you charge?
@@PlanYourFederalBenefits Why don't you just include the info in your talk? It is almost like you are setting people up to be burned by the rules.
@@howardkenneth5569 You need to keep $200 minimum balance to keep TSP account otherwise if it drops below $200, they'll cut you check for sub-$200 amount and close your account. Suggest you keep at least $200 in G Fund since G Fund doesn't drop. Transferring from traditional TSP to traditional IRA or vice versa is not a federal taxable event.
Have searched everywhere to no avail. I am retired Fed with a traditional TSP account only and age 64. Can I make a partial transfer of my TSP to fund a Crypto IRA while the remaining funds remain in TSP?
You can make a partial distribution from your TSP and roll it to a IRA
Hey Dallen I'm new to your channel. I'm a federal employee more specifically I'm a Federal Police Officer. Heres my question, can I convert my traditional TSP contributions to a Roth TSP. If yes how do I do that? Thanks
TSP does not allow traditional TSP to Roth TSP conversion. Contributing future income to Roth TSP is effectively similar tax wise.
Hi Haws,
I have a question related to ROTH IRA.
People who make too much money can't contribute to ROTH IRA.
(I know people can do backdoor ROTH.)
I'm wondering why? What's their purpose for doing that?
Thanks!
The backdoor Roth allows people to use the Roth IRA and invest after-tax money even when they make too much money to invest into the Roth directly.
I had a Retirement documents preparation to the Postal Service with the help of a Rep from Postal Benefit Group yesterday. She advised me to Rollover 80% of my TSP to Fidelity and Guaranty with a guaranteed 13% gain the first year which I will have no access to the money for that period and after that I can start withdrawing anytime or continue investing with them. Is this normal? They have been in the business of helping Postal Employees for the last 15 years. Any suggestions or similar experience? Not sure if it's the right approach. Thanks
Yikes sounds like you were sold an annuity.
Iam 59.5 yrs I plan on working until 66 yrs. I have a 45K sitting in a Madison group IRA (45K). Can I transfer the IRA into my TSP or should I keep it where its at.
Yes you may roll over traditional IRA to your traditional TSP and generally a good idea.
I f I convert my private Traditional to ROTH, is there limits or restrictions other than being age 59 1/2 + on with drawing the funds, would I be able to make withdraws from my ROTH within the first year? I thought I read something about conversion money needed to be in the ROTH for a certain length of time.
5 years for a Roth to be vested. It’s after the 5 year mark that you won’t be taxed on that money’s gains.(when you withdraw it)
72 is the age , for RMD. Could you please tell us what that number or percentage is, that you will be required to take out at 72. Base it on an easy number. Let's say 500,000.
What would be the RMD at age 72 for that amount? Thank you for your help and videos. You're doing a great job.
Look up the rmd table for 2021 and then divide the account balance by the amount showed for each age.
19k for a 500k balance at 72.
Ok thanks Aaron.
So at 72 years old
The percentage is 25.6 of your total.
500,000 ÷ 25.6= $19,531.25
That would me the RMD
@@brianturner7940 yes
Something I'm not clear on is, can you do a TSP to IRA transfer prior to retirement?
Yes, you can if you are over 59 and 1/2.
@@PlanYourFederalBenefits Great, thanks for the reply.
@@PlanYourFederalBenefits Is this true even for uniformed service members? I am recently retired from the Marines (age 47) and am contemplating transferring my TSP over to my Vanguard Traditional IRA. My other question is does all this still apply even if I have tax-exempt contributions inside my TSP?
Yes .. but the rules are differnt for how often you can do it. I think it’s quarterly if you are still working .. but check the TSP site.
@@Erginartesia Thanks for the reply. It's already done.
So I'm thinking about TRANSFERING my TSP to a traditional IRA in the future. But I have $60k in my TSP (traditional), but now any future money I put in there from my check (10%) goes to the ROTH TSP. The USPS puts 5% match in the traditional side of my TSP. I know, it's complicated. And everything gets put into the same pile ($60k) . I don't like the idea of MDA that the TSP forces on your retirement account, and the limited amount of investment funds. Thanks for all the free information!
New rules TSP does not force MDAs out of Roth anymore.
When you do a rollover it will ask you if you want $ to come out of ONLY traditional, ONLY Roth, or the proportion of your account .. I cannot think of any reason to pick that last option.
Different subject:::When you do a withdraw from the TSP i know that the Fed takes 20% but will the TSP folks send a percentage to your state to cover there taxes?
No.
Likely better to move your traditional TSP to traditional IRA so you avoid the immediate 20% Federal tax bite. As already answered state tax is not automatically removed.
The tsp is terrible during the withdrawal phase. You can't even pick what funds you want to pull from.
@@alrocky Withdrawals from a rollover IRA will also require paying taxes. The IRA company may not withhold the taxes, so the individual will need to pay estimated quarterly taxes themselves.
Six in one hand, half a dozen in the other.
How do I avoid capital gains, should I change my tsp to a Ira or move to a tax free state before retirement? I own a home right now so can I keep my home and do the Ira or sell my home and move to a tax free state? What recommendations do you have