TSP Withdrawals

[kannon]

Was hoping to find someone on here who has made a withdrawal from their TSP.

I am planning to do a Roth conversion from my TSP. From what I read and downloaded required forms, you have to withdraw from TSP, then send to your traditional IRA (at Vanguard for us) and then do a Roth Conversion (also at Vanguard).

Ok, that I understand. And I was hoping to use the withdraw to rebalance our TSP. And here's my question. From the paperwork I have filled out, it looks like when you withdraw from your TSP the amount is distributed across your different holdings automatically. In other words, I can't say take x from G Fund and Y from C Fund. Can someone please verify that please??

So I guess with rebalance of TSP you have to do a withdraw and then interfund transfers. Definitely a little more flexibility outside of TSP.

Thanks

 

[zinger1457]

The easiest way is to do a direct transfer from your TSP account to your IRA account at Vanguard. Yes, when doing a withdrawal the TSP will take an equal % from each fund you're invested in so I guess it depends on what you're trying to accomplish in doing a rebalance. You will end up with the same % invested in each fund before and after the withdrawal.

 

[yakers]

Just rebalance the TSP after the transfer, can be as little as one day out of the desired AA in the whole process. The TSP is not particularly flexible but the work arounds ar OK for most purposes. I moved part of my TSP to an IRA to do conversions QCDs and hold some asset classes not in the TSP but overall the TSP is a great program.

 

[Lawrencewendall]

Was hoping to find someone on here who has made a withdrawal from their TSP.

I am planning to do a Roth conversion from my TSP. From what I read and downloaded required forms, you have to withdraw from TSP, then send to your traditional IRA (at Vanguard for us) and then do a Roth Conversion (also at Vanguard).

Ok, that I understand. And I was hoping to use the withdraw to rebalance our TSP. And here's my question. From the paperwork I have filled out, it looks like when you withdraw from your TSP the amount is distributed across your different holdings automatically. In other words, I can't say take x from G Fund and Y from C Fund. Can someone please verify that please??

So I guess with rebalance of TSP you have to do a withdraw and then interfund transfers. Definitely a little more flexibility outside of TSP.

Thanks

I did a roth conversion to Fidelity in January. Set up the account in Fidelity, jumped on tsp.gov and set up the conversion (0% taxes withheld). TSP calls it a transfer. Required downloading paperwork which I sent to Fidelity in November. Paperwork is only valid for 45 days. Took about 3 weeks to get the paperwork back from Fidelity which was then sent to TSP in late December to have the "transfer" show as 2020. Additionally, set up a 3k monthly distribution from TSP (automatic 20% taxes) which just about covers the taxes for the total amount at 12%. Not sure if this has to be an annual nutroll.