Leave TSP funds in TSP or move to Edward Jones

[Pepper_cat]

It was many years back but, as I recall, I had to go with a check. Same when I rolled a portion of the TSP over to Schwab (so I could write checks to charities with the RMDs to get top of the line tax deductions). The TSP has some excellent funds but they are a PITA for withdrawals, roll overs, and roll ins.

It appears a check is still the only way to transfer IRA funds into TSP. Mail check to them and can take up to two weeks for the deposit to show in the account.

Official TSP reply:

The TSP has never offered the option for participants to transfer funds into their TSP accounts electronically. TSP transfers are documented by the TSP's recordkeeping system but held by the United States Department of the Treasury (Treasury). Please be aware that, while the Treasury does issue other types of TSP disbursements by electronic funds transfer (i.e., single payments, installment payments, and loans issued directly to participants from the TSP), the Treasury will not issue TSP transfers to or from IRAs at designated financial institutions or eligible employer plans by electronic funds transfer or wire transfer. The TSP is not a financial institution and does not have routing numbers for wire transfer. Consequently, all IRA and eligible employer plan transfer payments must be received by check.

 

[donheff]

I find TSP no worse and sometimes even better than many of the other tax deferred account custodians.

Good point. Even though I said the TSP is a PITA, that is only compared to institutions like Vanguard and Schwab. When I rolled an IRA into the TSP, the IRA custodian was more of a PITA. DW has a large 401K administered by Mass Mutual. We plan to roll it to Schwab before RMDs come around. We would do it now but it is a king sized PITA. Written forms, mailed checks, all the hurdles that stretch out the period the funds are in limbo. When we make that move we plan to first go to cash in the 401K on an up day and simultaneously convert other IRAs and my TSP to all equities to keep the overall portfolio closer to our chosen AA during the transition. Once the rollover funds are available at Schwab we will straighten things out.

I normally keep all of my TSP in the G fund. It is the cash like bond portion of our overall portfolio. I recommend that anyone rolling their TSP into an IRA for convenience consider keeping a portion with the TSP in the G fund for this purpose.

 

[Lawrencewendall]

Official TSP reply:

The TSP has never offered the option for participants to transfer funds into their TSP accounts electronically. TSP transfers are documented by the TSP's recordkeeping system but held by the United States Department of the Treasury (Treasury). Please be aware that, while the Treasury does issue other types of TSP disbursements by electronic funds transfer (i.e., single payments, installment payments, and loans issued directly to participants from the TSP), the Treasury will not issue TSP transfers to or from IRAs at designated financial institutions or eligible employer plans by electronic funds transfer or wire transfer. The TSP is not a financial institution and does not have routing numbers for wire transfer. Consequently, all IRA and eligible employer plan transfer payments must be received by check.

I think this is old info. I've electronically transferred from TSP to FIDO for the last 2 years as previously mentioned. Maybe TSP cut a physical check to FIDO. Dunno. Was transparent to me.

 

[nash031]

I've been retired from active duty life for almost two years, and have kicked around the idea of moving my TSP over to Vanguard for consolidation/simplification. I haven't done it yet, largely because of the G fund, which currently represents our bond allocation. I will soon roll a good portion of my TSP funds to Vanguard, but keep the G fund as the bond allocation.

Just a couple points to clarify in this older thread regarding fees:

G-fund and all TSP fund fees are now 0.049%. Still very low, but not as low as they once were.

VTSAX is 0.03%, Total Bond Market is 0.05%.

So the fees aren't really a valid argument to stay with TSP... right now. They're basically a wash. So for me, this decision has boiled down to:

Reasons to stay:
- Access to the G fund for our bond allocation.

Reasons to go:
- Consolidation and simplification of overall portfolio management.
- Ability to execute Roth conversions when able.
- Additional fund access at Vanguard not available at TSP (very minor because TSP has funds that are mostly good enough).

Just providing some food for thought here... Oh, and yes, get the heck away from EJ. Obvi.

 

[Pepper_cat]

I think this is old info. I've electronically transferred from TSP to FIDO for the last 2 years as previously mentioned. Maybe TSP cut a physical check to FIDO. Dunno. Was transparent to me.

The info I provided was a reply I received from TSP representative when I asked the question to TSP earlier this month.

 

[retiredunder50]

The info I provided was a reply I received from TSP representative when I asked the question to TSP earlier this month.

from https://www.tsp.gov/tsp-basics/move-money-into-tsp/
Ways to move money into your TSP account

Transfer money directly into the TSP

A transfer or “direct rollover” occurs when the eligible plan sends all or part of your money to the TSP. Use Form TSP-60, Request for a Transfer Into the TSP, for tax-deferred amounts. To transfer Roth money, use Form TSP-60-R, Request for a Roth Transfer Into the TSP.
Roll Over Traditional Money into the TSP

A “rollover” is when you receive eligible money directly from your traditional IRA or plan and then you later put it into your TSP account. You cannot roll over Roth money into the TSP and you must complete your rollover within 60 days from the date you receive your funds. Use Form TSP-60, Request for a Transfer Into the TSP, to roll over eligible traditional money.


from the instruction page:
"If you are making a transfer (direct rollover), you must
then provide the entire package to your IRA trustee or plan
administrator to complete Section III and send us the completed
form with a check."


looks like the transfer is direct from your IRA brokerage house to TSP, but in the form of a check

 

[Lawrencewendall]

from https://www.tsp.gov/tsp-basics/move-money-into-tsp/
Ways to move money into your TSP account

Transfer money directly into the TSP

A transfer or “direct rollover” occurs when the eligible plan sends all or part of your money to the TSP. Use Form TSP-60, Request for a Transfer Into the TSP, for tax-deferred amounts. To transfer Roth money, use Form TSP-60-R, Request for a Roth Transfer Into the TSP.
Roll Over Traditional Money into the TSP

A “rollover” is when you receive eligible money directly from your traditional IRA or plan and then you later put it into your TSP account. You cannot roll over Roth money into the TSP and you must complete your rollover within 60 days from the date you receive your funds. Use Form TSP-60, Request for a Transfer Into the TSP, to roll over eligible traditional money.


from the instruction page:
"If you are making a transfer (direct rollover), you must
then provide the entire package to your IRA trustee or plan
administrator to complete Section III and send us the completed
form with a check."


looks like the transfer is direct from your IRA brokerage house to TSP, but in the form of a check

I guess we're talking apples and oranges. I moved money OUT of TSP not INTO it.

 

[deserat]

I have a decent friend that is an EJs advisor. They spend a lot of time looking for clients and he told me once that older folks are great "marks" and you can find these folks by seeing "fat squirrels and long cars" in some older, established neighborhoods. Yes...they still solicit business DOOR TO DOOR.

Also, this is a picture from his Facebook. Do you want to help pay for an EJs advisors sweet ride?

They don't call him fast Eddie for nothing! Fat squirrels and long cars, indeed...sheesh.

 

[retiredunder50]

I guess we're talking apples and oranges. I moved money OUT of TSP not INTO it.

Thanks. I was quoting Peppercat as the TSP reply he references seems to be mostly focused on transfers IN to the TSP. That TSP reply aligns with what is currently on the TSP site with respect to inbound transfers (direct rollovers).

 

[retiredunder50]

With the improved withdrawal access, the relatively low fees & the unique G fund, the TSP is pretty good. There is a problem that couples should consider upon the death of the TSP account owner. If the beneficiary is your spouse, the spouse can basically continue on with TSP. However, when the spouse passes, the spouse's beneficiaries will have to pay taxes on the lump sum they receive.


https://www.tsp.gov/publications/tspbk33.pdf page 9


Payment of Death Benefits From
Your Account
Death benefit payments made from your beneficiary
participant account must be paid directly to your
beneficiary(ies). These payments are subject to certain
tax restrictions and cannot be transferred or rolled over
into an IRA or eligible employer plan. In addition, your
beneficiary(ies) will have to pay the full amount of taxes
on the taxable portions of the payment in the year it is
received. Your beneficiaries will not owe taxes on Roth
contributions, qualified earnings on Roth contributions,
and tax-exempt contributions in the account. For
detailed information about the rules associated with
death benefit payments, read the TSP tax notice Important
Information About Thrift Savings Plan Death Benefit Payments.
You may also want to consult a tax advisor.


You might want to leave your spouse instructions to get the funds into an IRA upon your death.