The Worst TSP and IRA Rollover Mistakes

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I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.

[@eandrgoodwin]

It sure would be nice if they allowed Roth conversion WITHIN the TSP!!! That would make life easier!

[@billh4285]

I did my first Roth Conversion in April. When I called TSP, I used the words "Direct Transfer" which they understood was not a rollover. There are also some tax rules people should be familiar with when doing this. Number Crunch Nerds has some excellent, in-depth videos on this.

[@jerrys2346]

Good explanation. I knew 75% of this but the extra 25% education was worth the price of admission!

[@carriebeard9926]

Very helpful!

[@David-cv3bp]

Great explanation, so many just don’t understand.

[@jonathanfiscus3221]

Great video! So many options to consider.

[@PlanYourFederalBenefits]

Glad it was helpful!

[@jt2quick]

As always...another great video...Learned something new today.... You keep up the fire, Mr. Haws...and have a great wekeend to boot!!!!

[@PlanYourFederalBenefits]

Glad you enjoyed it

[@jt2quick]

@@PlanYourFederalBenefits ooh..heck yeah... Your videos are like a Crunchyroll Series and can't wait for the next episode.... Keep it up....

[@Vicshade]

Good information as always. So helpful.

[@PlanYourFederalBenefits]

Glad you think so!

[@paulettepierre6758]

I turn 59 1/2 next month but still have 5 years to retirement. I decided I want to start doing in-service rollovers so I have more investment choices. I have both Traditional and Roth Tsp so I will be doing both on a quarterly basis. I’ve already opened my rollover IRA with Fidelity. You have to make sure you have it open for 7 days prior to directly rolling it over.

[@eandrgoodwin]

In-service rollovers? I didn’t know you could do that.

[@zenawarrior7442]

Another great video, thanks😊

[@PlanYourFederalBenefits]

Thanks for watching!

[@zenawarrior7442]

@@PlanYourFederalBenefits Always welcome!👍

[@sdh41]

My recent experience has been for doing a traditional IRA, if you "move your money" (not going to use either "transfer" or "rollover" yet) from TSP to a traditional IRA at a financial institution such as Schwab, Fidelity, etc., AND you use the TSP website to do it, unless I am missing something, the word "Transfer" is not used on the website - only "Rollover" and the options are "Rollover mailed to you" or "Rollover mailed to institution" (moving mine to an institution). The account at the institution receiving the TSP money must be established because the TSP website will ask for the Institution name and address, PLUS the account number. Using the TSP website for this does have a quirk that does cause a delay of about a week for the transaction to occur - I am currently waiting - but the "moving of money" can be done using the website. Caveat - This has been MY experience... yours may vary.

[@BA-pz3lo]

im gonna be 48 when i retire from the army. so i have to wait until im 59 to do this?

[@sdh41]

@@BA-pz3lo Answering the question you asked (as I do not know your full situation), no, you do not have to wait until 59, but as @PlanYourFederalBenefits says, make sure you understand the steps to be taken because a misstep in the process can potentially create nasty tax consequences. Neither I or my wife is 59, but I'm moving mine now (as stated above) and my wife moved hers at the end of '22.

[@exvan3571]

Are the people currently running the TSP competent, or were they the lowest bidder for the contract? The latest TSP website is awful and they don't seem to care. Makes one wonder about the rest of it.

[@davezombie1215]

What really blows the mind is the TSP is now run by Accenture which was previously Arthur Anderson. This is the same firm that was involved in the Enron scandal and went defunct in the early 2000.

[@LoLwanderer]

Hi I'm around 30 with 3 years of service, so a long way to go for me. I thank you for your videos but I have my doubts about whether I can trust the system will persist in its present form long enough for me to collect the benefits as they are offered today. Your thoughts?

[@noway5976]

No guarantees there won’t be some changes while employed, although I believe the long term overall benefit of federal employment will outweigh any negatives.

[@LinhPhuong-js4no]

Hello, is there a 5 years rule under TSP Roth , thank You!

[@PlanYourFederalBenefits]

Great question. Yes, here is a video about it: kzbin.info/www/bejne/kKOre5pjmMR4oZo&ab_channel=HawsFederalAdvisors

[@p56900]

TSP now says transfer is done online and us called Rollover out ...have you helped a client with that new online "transfer" method?

[@PlanYourFederalBenefits]

Yes

[@baileykubose449]

I called my tsp and asked to transfer not roll over and the rep states they don’t do transfer. How do I get you to represent me? Thank you

[@PlanYourFederalBenefits]

You're always welcome to schedule a meeting with us through this link: app.hawsfederaladvisors.com/whatservicemakessense

[@edwardboakye6598]

How to calculate ROTH TSP investment

[@PlanYourFederalBenefits]

Your latest LES (Leave & Earnings Statement) should tell you how much you are invested in the Roth TSP.

[@user-os3nr4yw3k]

Please I recently gained employment at the VA. I currently have 2 retirement accounts. Will it be wise to transfer them to TSP traditional account or will it be wise to transfer the higher account to Traditional TSP and leave the second as is? Thanks.

[@PlanYourFederalBenefits]

Great question. It might be nice to transfer your retirement fund to one account just so its easier to keep track of your investments. The most important thing is that you take advantage of the employer match and keep contributing to the TSP.

[@user-os3nr4yw3k]

@@PlanYourFederalBenefits thank you

[@thkchristensen]

What about a 72T? If you transfer all your Traditional TSP to a Traditional IRA can you use a 72T to withdraw $$ under 59 1/2 without penalty?

[@PlanYourFederalBenefits]

Great question. If you transfer your TSP funds into an IRA account before you turn 59.5, you cannot make IRA withdrawals without penalty (even if you're retired). Here is a great video with more information: kzbin.info/www/bejne/rJnUp5Z4np15l7c&pp=ygUraGF3cyBmZWRlcmFsIGFkdmlzb3JzIHRzcCBlYXJseSB3aXRoZHJhd2Fscw%3D%3D

[@BA-pz3lo]

im gonna be 48 when i retire from the army. so i have to wait until im 59 1/2 to move my TSP money to my Schwab account?

[@PlanYourFederalBenefits]

Great question. No, you can transfer your traditional TSP money to a traditional IRA before 59.5 without penalty. You just can't withdraw money for personal use before 59.5 without the 10% penalty.

[@appleblows1]

I see you can transfer from Traditional TSP to Traditional IRA and do a Roth conversion. My question is, can you transfer from Roth IRA back to Roth TSP?

[@PlanYourFederalBenefits]

Great question. No, you cannot transfer your Roth IRA to the TSP.

[@appleblows1]

@@PlanYourFederalBenefits TSP needs to change and allow Roth conversion within TSP.

[@David-cv3bp]

I thought even within the TSP you could move money to the Roth TSP?

[@PlanYourFederalBenefits]

Sadly, no. Not if you've already contributed that money to the traditional TSP.

[@paulettepierre6758]

If you have a Roth TSP but not if it’s the traditional.

[@SmoothMP5]

Dallen, I have watched many of your videos and your wealth of knowledge is amazing. Now this is the first time I making a comment. Two things I was wondering, do you have any videos helpful for filling out the blue book and also are you sure you’re not Italian because you use your hands more than I do while talking lol 😂. I also just want to thank you for making us federal employees a little smarter with every video. Keep up the good work buddy.

[@eagleschic4926]

So should I open a traditional IRA with a brokerage firm now? I’m 6yrs from retirement. Thank you.

[@PlanYourFederalBenefits]

Great question. Here's a video that goes over the pros and cons of each: kzbin.info/www/bejne/ppW9Yaloo8ySl5o&pp=ygUfaGF3cyBmZWRlcmFsIHNwb3VzYWwgdHNwIHZzIGlyYQ%3D%3D