In this episode of theSITREP, Paul covers rollover options with Thrift Savings Plan. Paul is joined by U.S. Air Force Veteran, Mike Jerue, who serves as the Deputy Chief Investment Officer at Thrift Savings Plan.

Listen to the complete Thrift Savings Plan Podcast here:

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ADDITIONAL THRIFT SAVINGS PLAN VIDEOS

What is Thrift Savings Plan

Pension vs. Thrift Savings Plan

Contributions with Thrift Savings Plan

Thrift Savings Plan After Government Service

How to Set-Up Your Thrift Savings Plan

IRA & Thrift Savings Plan Contributions

Thrift Savings Plan Beneficiaries

Thrift Savings Plan Contributions After Service

Roth vs. Traditional Thrift Savings Plan

IRA vs. Thrift Savings Plan

403b vs. Thrift Savings Plan

Thrift Savings Plan Rollovers

Are TSP Contributions Tax Deductible

401k, 457 & 403b vs. Thrift Savings Plan

TSP Maximum Contributions

Individual Funds (G, F, C, S, I Fund) & TSP

TSP L Funds

TSP Retirement Calculators

Roth vs. Traditional Withdrawals

How to Change TSP Contribution Amounts

Thrift Savings Plan Loans & Withdrawals

Age to Withdraw TSP

Thrift Savings Plan Vesting Period

(RMDs) Required Minimum Distribution & TSP

TSP After DoD Service

TSP Company Holdings

Thrift Savings Plan DoD Rollover

How to Access Thrift Savings Plan

Retroactive Contributions to TSP

Catch-Up Contributions with TSP

Changing Contributions with TSP

Thrift Savings Plan Mutual Funds

THRIFT SAVINGS PLAN TOPIC LINKS

For TSP overview, visit:

For TSP contributions, visit:

For TSP L Funds, visit:

For TSP investment funds, visit:

For TSP rollovers, visit:

For TSP holdings of companies, visit:

For TSP mutual fund window, visit:

For TSP annuity, visit:

For TSP required minimum distribution (RMD), visit:

For TSP loans, visit:

For TSP hardship withdrawals, visit:

For TSP death benefits, visit:

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Thrift Savings Plan Rollover | IRA Rollover | TSP | theSITREP

Planning for retirement can be a daunting task, but having the right financial tools at your disposal can make all the difference. One such tool is the Thrift Savings Plan (TSP) offered to federal employees and members of the uniformed services. However, what happens to your TSP account when you leave federal service? This is where a TSP rollover comes into play, allowing you to transfer your TSP funds into an Individual retirement account (IRA) for greater flexibility and control over your retirement savings.

A TSP rollover involves moving your TSP funds into an IRA, whether a traditional IRA or a Roth IRA. This transfer allows you to continue growing your retirement savings outside of the limitations imposed by the TSP. By rolling over your TSP funds into an IRA, you gain access to a wider range of investment options, including stocks, bonds, mutual funds, and even real estate investment trusts (REITs). This diversification can potentially increase your investment returns and provide a more tailored approach to meet your specific retirement goals.

There are several advantages to rolling over your TSP into an IRA. Firstly, by moving your funds into an IRA, you gain more control over your investment choices. TSP investment options are limited to a handful of index funds, while IRAs offer a much broader range of investment options. This allows you to customize your portfolio according to your risk tolerance, investment preferences, and long-term goals.

Secondly, rolling over your TSP into an IRA grants you the flexibility to withdraw funds as needed during retirement. With the TSP, there are strict rules regarding withdrawals, such as mandatory minimum distributions once you reach a certain age. In contrast, IRA rollovers offer more flexibility, allowing you to withdraw funds without penalty after the age of 59½. This can be particularly beneficial if you have unexpected expenses or if you want to travel or pursue your passions during retirement.

Another advantage of a TSP rollover is the potential for tax benefits. By rolling your TSP funds into a traditional IRA, you can potentially defer taxes on your contributions and earnings until you withdraw funds during retirement. This can help lower your tax liability during your working years and potentially result in tax savings during retirement, especially if your income decreases in retirement. On the other hand, if you roll over into a Roth IRA, you pay taxes on the rollover amount now, but you won’t have to pay taxes on qualified withdrawals in retirement, potentially providing tax-free income during your golden years.

To initiate a TSP rollover, you’ll need to open an IRA account with a qualified financial institution or brokerage firm. They will guide you through the rollover process and help you select the right investment options based on your financial objectives. It’s essential to research and compare different IRAs to find the one that suits your needs best, considering factors such as fees, investment options, and customer service.

Before making a decision, it’s important to assess your individual circumstances and consult with a financial advisor or tax professional to understand the potential benefits and drawbacks of a TSP rollover. Factors such as your age, retirement goals, current tax situation, and financial needs must be taken into consideration. A financial professional can help you evaluate whether a TSP rollover is the right move for you or if it makes more sense to leave your funds in the TSP.

In conclusion, a TSP rollover into an IRA can provide federal employees and members of the uniformed services with greater control and flexibility over their retirement savings. By taking advantage of the wider range of investment options, potential tax benefits, and more lenient withdrawal rules, a TSP rollover can help maximize your retirement savings and provide a solid foundation for your golden years. However, it’s crucial to seek professional advice and thoroughly consider your individual circumstances before making any decisions regarding your TSP or retirement savings.