What Can You Roll Over Into the TSP?

February 24, 2019

[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]TSP participants are eligible to rolling money over into their TSP from other plans and IRAs both while employed and after retirement. They also have the chance to push money out of the TSP to other eligible plans and IRA one time while employed and once (or twice) after retirement.

The Thrift Investment Board recommends that the TSP participants stay in the TSP after retirement and roll more money into their TSP from qualified plans or IRAS they might have.

Here is a list of scenarios when you are allowed to roll into your balance of your TSP;

-Funds from a traditional employer-sponsored saving plan, for example, 401(k) account that you had before or after your federal career;

-Money from your Traditional IRA where you have had the chance to deduct your IRA contributions also known as Traditional deductible IRA from your federal income tax;

-The earnings constituents from a Traditional IRA where you cannot deduct your IRA, also known as Traditional non-deductible IRA from your federal income tax;

Also, you are eligible to rolling money from a Roth employer-sponsored plan like the Roth 401(k) that you probably had before or after your federal career into your traditional TSP’s Roth balance. However, you are not eligible to roll any of the following either in your TSP or Roth account.

-Any funds from a non-qualified plan

-Any funds from Roth IRA

-Any contributions from your Traditional non-deductible IRA

-Any money that does not officially belong to you, regardless of whether it is in a qualified plan, for example, your spouse’s plan

Rollovers that shift money to the TSP do not count in the yearly elective deferral limit ($18,500 last year)

To roll money to your TSP, you need form TSP 60 for rollovers into your balance and form TSP 60-R for rollovers in your Roth balance

What about moving money out of your TSP into other eligible plans or accounts. Rollovers in the TSP have always been allowed since its start. Today, you can do any kind of rollover, whether in or out of TSP directly, such that money moves directly from one saving account to the next.

However, there are rules on the number of times that one is allowed to make the rollovers, and these rules are expected to last till the TSP Modernization Act in September 2019. You have two chances to withdraw from TSP, and by withdrawal, it means the method used to roll money out of TSP.

You have to use the necessary withdrawal form based on whether you want to roll over the partial or full amount and elect for withdrawal to be successful. You then must be the owner of the account to which you intend to move your TSP funds and let the custodian fill in the transfer details on the form. The filled amount should then move directly from the TSP into the chosen account. TSP comes handy with a publication which can be accessed from the Forms of Publications section on the TSP’s website, and you may be required to offer it to the new chose plan’s custodian before the transfer of funds.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”35980″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]