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Different Ways of Moving Money to Your TPS Account

January 16, 2019

[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]Although the separated workers cannot make savings to their TSP, which is only made through payroll deductions, they still have the allowance of rolling money into their TSP accounts and to keep managing it. These rollovers are only done on qualified accounts, and they are not treated as contributions to TSP.

You will be allowed to roll the money into your TSP account even if you have started taking distributions. You should, however, note that not all employer plans and IRAs are qualified for this allowance. If you have a Roth balance in your TPS, you will be allowed to roll the Roth plan from your previous or subsequent employer into the TSP. You are however not allowed to roll a Roth IRA into your TSP balance. That is just how the law demands.

If as a federal worker you have a traditional balance in your TSP account, which most people do, you are permitted to roll pre-tax money from your employer and IRAs plans into your TSP. The money will include everything entailed in a basic deductible IRA, (which means that you could deduct your contributions from your earnings for federal income tax) and the income portions of a non-deductible IRA (where the IRA deductibles are nondeductible).

You can also roll over your pre-tax money into any employer-sponsored plan from a previous or subsequent employer.

Some people tend to wonder if after leaving TSP, they could go back after separation. The answer to this is no. You cannot go back just anyhow. You have to get a job, be re-employed and then create a new TSP account. In such case, you will be categorized as a re-employed annuitant, and you could be allowed or denied the chance to contribute to the TSP. It is best if you look for resources and understand more on the same.

Most individuals wish that they could go back into the TSP after separation. For example, you could opt to roll your account into IRA as you search for better withdrawal choices. Later, TPS comes with more defined and better withdrawal options which promote flexibility for all. At this point, you will want to get back to TPS, and you find it better.

If you are already a retiree who does not wish to return to federal service for re-employment, you will have no chances of getting back. However, if you still have some desires for getting back to the federal services, you could get re-employed and try out your luck to see if you will be granted the chance to contribute to the TSP.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”35753″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]