Awesome explanation. I'm probably going to move all my TSP (both the traditional and Roth) out of the TSP when I'm like 62. TSP is too limited, and even if you have Roth, they force you to take yearly minimum distributions at your later years. I think it's at age 70 I believe? I'll most likely rely on my Pention and maybe social security? But I'm only 47. I'm going to keep investing for the next 15 years since I only got $63k in my TSP right now (Sept 2023). By the time I'm retired, my house will be paid off a long time ago and my consumer debt will be zero. Hopefully I can stay healthy, but I have a lot of life insurance if something happens to me (I have a wife, a 16 year old daughter and a 7 year old son). From what I've seen, I'm doing better than most people in the US, which is sad. Wish me luck! I only have $102k left in my mortgage. Thank you for the good advice!
Thank you for this video, honestly. Cause im about to get out of the military and i didn't know where to start with my retirement plan, but youre video has saved me from probably initiating a taxable event and losing my segregation of non taxed combat pay, which is gonna save me alot of money. Best video ive seen on the topic, very concise and structured. You're the man
Great explanation- Currently invested in TSP with another 20yrs to go, but never too soon to plan your exit strategy into retirement. A traditional IRA with growth & high yield dividend ETFs will hopefully make for nice passive income for years to come.
I have 2 TSP accounts. One from when I was on active duty and then another from civilian federal service. I'm considering rolling the accounts into an IRA. I found your video straight-forward and educational. Thank you.
3 questions: 1. Are you saying you have to be retired from the government before you’re able to do a roll over? 2. Can you roll over just the portion of your TSP that is a Roth TSP to a Roth IRA or does it have to come from traditional as well? 3. When doing a direct or indirect rollover does the TSP take out 20% for taxes on both? Thanks
Q1&2 No, after you leave government service (quit or otherwise no longer employee) you may roll traditional TSP to traditional IRA and Roth TSP to Roth IRA. Q3 If you withdraw directly from TSP, you with suffer 20% federal tax withholding. Instead transfer from t-TSP to t-IRA.
What about tax-exempt funding that was invested while you were deployed? Even though all my TSP is in a Traditional IRA, does the tax exempt portion go (rollover) into a Roth IRA?
I have the same question. It seems logical that the tax-exempt combat contributions should be rolled into a new Roth. Maybe he will see this new question and answer for both of us.
My wife and I are both retired from govt and have TSP accounts. She sips of hers monthly and I haven’t touched mine. We are both in the G fund and looking to make our money go farther. So as long as I stay with a traditional IRA I will be ok?
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Awesome explanation. I'm probably going to move all my TSP (both the traditional and Roth) out of the TSP when I'm like 62. TSP is too limited, and even if you have Roth, they force you to take yearly minimum distributions at your later years. I think it's at age 70 I believe? I'll most likely rely on my Pention and maybe social security? But I'm only 47. I'm going to keep investing for the next 15 years since I only got $63k in my TSP right now (Sept 2023). By the time I'm retired, my house will be paid off a long time ago and my consumer debt will be zero. Hopefully I can stay healthy, but I have a lot of life insurance if something happens to me (I have a wife, a 16 year old daughter and a 7 year old son). From what I've seen, I'm doing better than most people in the US, which is sad. Wish me luck! I only have $102k left in my mortgage. Thank you for the good advice!
Thank you for this video, honestly. Cause im about to get out of the military and i didn't know where to start with my retirement plan, but youre video has saved me from probably initiating a taxable event and losing my segregation of non taxed combat pay, which is gonna save me alot of money. Best video ive seen on the topic, very concise and structured. You're the man
Hey thanks glad to help
Great explanation- Currently invested in TSP with another 20yrs to go, but never too soon to plan your exit strategy into retirement. A traditional IRA with growth & high yield dividend ETFs will hopefully make for nice passive income for years to come.
Glad it was helpful!
I have 2 TSP accounts. One from when I was on active duty and then another from civilian federal service. I'm considering rolling the accounts into an IRA. I found your video straight-forward and educational. Thank you.
No problem! Would you roll one TSP to another TSP?
@@FIREPsyChat No, I think I want to move out of TSP and into IRA.
Great info.
Yy
ou keep mentioning 10% penalty in this video. I thought no penaly if a retiree withdraw at 59.5 or older, Right ?
3 questions:
1. Are you saying you have to be retired from the government before you’re able to do a roll over?
2. Can you roll over just the portion of your TSP that is a Roth TSP to a Roth IRA or does it have to come from traditional as well?
3. When doing a direct or indirect rollover does the TSP take out 20% for taxes on both?
Thanks
Q1&2 No, after you leave government service (quit or otherwise no longer employee) you may roll traditional TSP to traditional IRA and Roth TSP to Roth IRA.
Q3 If you withdraw directly from TSP, you with suffer 20% federal tax withholding. Instead transfer from t-TSP to t-IRA.
What about tax-exempt funding that was invested while you were deployed? Even though all my TSP is in a Traditional IRA, does the tax exempt portion go (rollover) into a Roth IRA?
I have the same question. It seems logical that the tax-exempt combat contributions should be rolled into a new Roth. Maybe he will see this new question and answer for both of us.
You can move money at 59.5 even if you are still employed in the federal government! are you new or something?
Wait, I was under the impression you could roll over while still in service. Is that not correct?
My wife and I are both retired from govt and have TSP accounts. She sips of hers monthly and I haven’t touched mine. We are both in the G fund and looking to make our money go farther. So as long as I stay with a traditional IRA I will be ok?
Consider moving some 50% or more of TSP balance from G Fund to L Income Fund.