martyb
Thinks s/he gets paid by the post
Can you do that? I didn't think you could add any more funds to TSP after retirement. My only IRA's are ROTH, so I don't guess that's an option for me even if it's possible do add $$ at retirement.
COLA cool off?
- Thread starter mickeyd
- Start date
Gardnr
Recycles dryer sheets
It's even better than that. 0.015% for all the funds! You just can't beat the TSP for low expenses, can ya?
http://www.tsp.gov/rates/fundsheet-ifund.pdf
http://www.tsp.gov/rates/fundsheet-sfund.pdf
Gardnr
Recycles dryer sheets
Yep, you can transfer from any eligible retirement plan, including a traditional IRA and an eligible employer plan (like a 401K) to an existing TSP acct.
http://www.tsp.gov/forms/tsp-60.pdf
I'm strongly considering doing this with my current employer 401K plan when I leave. The ultra low expenses for the index funds are pretty attractive. I'd also utilize the S & I funds like Nords. That's what I currently have my TSP invested in, helping to meet those portions of my overall AA.
Nords, Gardnr--Thanks a lot for the tip. I was sure I'd read that contributions to TSP were only allowed while you were employed (or on AD), but I see that is not the case. This is great news--I can dump $$ from my present solo401K into my existing TSP once I stop working.
Interesting that you can only do it with an existing TSP account, it looks like you can't open a TSP account after leaving govt service. This should be another "must do" for anyone leaving the military--put a small contribution into TSP to get your foot in the door and keep this tremendous option open for the future.
Now I'm going to investigate the [-]loopholes[/-] wording of the regs that might let me terminate and re-open my solo401K as a way to do this transfer now rather than waiting.
Interesting that you can only do it with an existing TSP account, it looks like you can't open a TSP account after leaving govt service. This should be another "must do" for anyone leaving the military--put a small contribution into TSP to get your foot in the door and keep this tremendous option open for the future.
Now I'm going to investigate the [-]loopholes[/-] wording of the regs that might let me terminate and re-open my solo401K as a way to do this transfer now rather than waiting.
I put this into the "too good to believe" category, right next to restarting Social Security.
My fledgling TSP contributions got booted out in 2002 because I didn't know I could dump in my IRA. Won't make that mistake with spouse!
Gardnr
Recycles dryer sheets
You're quite welcome!
To be absolutely clear and concise, they aren't "contributions", they're just transfer of already contributed money to a qualified plan. Contributions being basically defined as new money from your earned income. It appears you understand that but I thought I'd ensure clarification to avoid confusion for others.
Yep, I think that a lot of people don't appreciate the TSP in terms of the extremely low costs. They often just complain about the lack of choice in the plan without appreciating the high value of low costs. In my opinion too many choices does not serve people well anyway. A well balanced portfolio made up of the existing funds covers the full range of the market without any fancy bells and whistles. Just too boring for some folks. But we know how most people lose money by chasing things around, don't we?
The L funds would be a good choice for many people as well. They'd better served using them rather than jumping around and/or trying to time the market based on their emotional reactions. Or just as bad, just parking their money in the G or F fund when they're in their 20s and 30s.
I just wish we'd had the TSP available back when I was a young pup! I played a lot of catch up in the last eight years or so.
