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Can I Roll Over Tsp to Ira While Still Working

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Dot

#1 Posted : Friday, August 19, 2011 6:09:48 AM(UTC)

Angel1955

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I am over 70 1/2  - getting ready to retire because of health - per Dr - need to rest and relax - -

Since it is age based can I pull it all out and transfer to IRA - I have found a financial planner who my daughter has and really likes.  I just want the money to be accessible when I want it - I nderstand that even with the IRA I will still have to accept payments due to my age???
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    junkmail

    #2 Posted : Friday, August 19, 2011 5:43:27 PM(UTC)

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    Yes, you are eligible to transfer an age-based in-service withdrawal from your TSP account to an IRA.  See https://www.tsp.gov/PDF/formspubs/tspbk12.pdf for more information.
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      mudpie

      #3 Posted : Wednesday, August 31, 2011 4:28:09 AM(UTC)

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      You can roll-over money between any qualified retirement accounts as often as you like.

      "Bring back TSP day trading" Wink

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        zinger1457

        #4 Posted : Friday, September 2, 2011 11:12:50 PM(UTC)

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        mudpie wrote:

        You can roll-over money between any qualified retirement accounts as often as you like.

        "Bring back TSP day trading" Wink

        While you are still working you can rollover any qualified IRA accounts into your TSP but you cannot rollover your TSP to an IRA.  The exception is the one time partrial withdrawal allowed for workers over 59.5.

        zinger14572011-09-04 06:49:58
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          Not retiring yet

          #5 Posted : Monday, September 5, 2011 7:20:05 AM(UTC)

          Not retiring yet

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          TSP.ORG    Best thing to read.   Angel,  in your position,  best thing to do is start withdrawals from TSP/  monthly payments.   Can't do that with an IRA,  unless you have enough to make annuity payments large enough for what you need.    You really need to read TSP   OR GO TO  that financial advisor.  and not the one your daughter likes.  Find one on your own.  You will learn more that way.

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            Dot

            #6 Posted : Monday, September 5, 2011 9:00:17 AM(UTC)

            Angel1955

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            Ah - Now I can type a comment - TSP said the way it stands now I would get about $250.00 a month - well half of a house payment - -
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              zinger1457

              #7 Posted : Monday, September 5, 2011 9:00:37 AM(UTC)

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              Not retiring yet wrote:

              Angel,  in your position,  best thing to do is start withdrawals from TSP/  monthly payments.   Can't do that with an IRA,  unless you have enough to make annuity payments large enough for what you need.

              When it comes to withdrawals you can do everything with an IRA that you can with TSP plus a lot more.  If I take monthly payments from my IRA then decide I need a liitle more for an emergency, no problem.  Try doing that with TSP once you are set up for monthly payments.  With an IRA if I don't need monthly payments I can make withdrawals as often as is needed, once a year, twice a year, or just let it sit there.  With TSP you can do a one time partial withdrawal and that's it, if you need money from your account after that you have to do a full withdrawal (monthly payments, annuity, full withdrawal, or combination).
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                Dot

                #8 Posted : Monday, September 5, 2011 4:18:28 PM(UTC)

                Angel1955

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                Maybe I should just take it and put the $70,000 under my mattress :+}  I GOT THE IMPRESSION THAT THE IRA WAS JUST AS FIRM ABOUT GETTING MONEY WHEN NEEDED - I have about decided to retire on Jan 2 2012 - only thng is - TSP sAid I had to get my paper work to them by December 31st in order to get my first auto distribution - at 10% too - but will there be a problem between Dec 31st and Jan 2nd as my social security checks will stop a month ahead - I do understand that an IRA costs more money for admin. fees then TSP - this having to make a quick decision due to health is a pain - and appreciate all the information I receive that people have experienced -
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                  Not retiring yet

                  #9 Posted : Tuesday, September 6, 2011 7:10:05 AM(UTC)

                  Not retiring yet

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                  Originally posted by Zinger1457.

                  When it comes to withdrawals you can do everything with an IRA that you can with TSP plus a lot more.  If I take monthly payments from my IRA then decide I need a liitle more for an emergency, no problem.  Try doing that with TSP once you are set up for monthly payments.  With an IRA if I don't need monthly payments I can make withdrawals as often as is needed, once a year, twice a year, or just let it sit there.  With TSP you can do a one time partial withdrawal and that's it, if you need money from your account after that you have to do a full withdrawal (monthly payments, annuity, full withdrawal, or combination).


                  This is not the first link Angel has posted.  She is over 70 1/2.  She and husband will both be retired, when she retires.  She will lose her husband/s SS  as soon as she retires.    TSP  she cannot make a partial withdrawal at the minute.  She has NO IRA at the minute.   She has health issues, and financial problems.    What we haven't learned from Angel, is   her husband's SS stops,  but does she get SS?  Does she get any pension from anywhere?  Without knowing that, we have to surmise the best solution.   TSP  you can make a partial withdrawal (moving money to an IRA is partial) then take monthly payments.   Find Angel's other discussions and you will find some of her situation, but, not all the answers.

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                    Knight

                    #10 Posted : Tuesday, September 6, 2011 8:01:17 AM(UTC)

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                    Why move it to then take monthly payments, can't you take monthly payments from the TSP?

                    Also doesn't the required minimum kick in if you are 70.5 years old? Is that better or worse with an IRA vs TSP? I don't know.

                    Knight2011-09-06 16:08:35
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                      Not retiring yet

                      #11 Posted : Tuesday, September 6, 2011 8:40:46 AM(UTC)

                      Not retiring yet

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                      Still employed.  BUT, the decision Angel is having trouble with, is, how to access her $$ quickly after she retires.     This might help NOW  - - Acceptable Reasons for Withdrawing

                      To qualify for a financial hardship in-service withdrawal, you must have

                      a financial need that results from at least one of the following conditions:

                      • Negative monthly cash flow .

                      • Medical expenses (including household improvements needed for

                      medical care) that you have not paid and that are not covered by

                      insurance .

                      • Personal casualty loss(es) that you have not paid and that are not

                      covered by insurance .

                      • Legal expenses (that you have not yet paid) for separation from your

                      spouse or divorce .

                      While these conditions are explained below, they are described in more

                      detail on Form TSP-76 (TSP-U-76 for members of the uniformed services),

                      Financial Hardship In-Service Withdrawal Request . You can obtain this

                      form from the Forms & Publications section of the TSP Web site, from

                      your agency or service, or by calling or writing to the TSP .

                      Negative Monthly Cash Flow

                      You have a negative monthly cash flow if your monthly income is less

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                        job forlife

                        #12 Posted : Tuesday, September 6, 2011 12:28:18 PM(UTC)

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                        You pay no fees right now with TSP when you roll to an IRA then fees apply for every transaction since you'll have to work thru a broker. You can't touch the money or you'll have to pay taxes
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                          FlatBroke

                          #13 Posted : Tuesday, September 6, 2011 1:56:56 PM(UTC)

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                          job forlife wrote:

                          You pay no fees right now with TSP when you roll to an IRA then fees apply for every transaction since you'll have to work thru a broker.

                          That's not necessarily true. If the OP stays away from LOADED mutual funds, she may not have to pay any fees. Since she mentioned going with Vanguard in another thread, she will likely not incur any fees with them.
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                            FlatBroke

                            #14 Posted : Tuesday, September 6, 2011 2:05:00 PM(UTC)

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                            Angel1955 wrote:

                             I GOT THE IMPRESSION THAT THE IRA WAS JUST AS FIRM ABOUT GETTING MONEY WHEN NEEDED

                            I don't understand the statement. What do you mean by that?
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                              Not retiring yet

                              #15 Posted : Wednesday, September 7, 2011 4:47:11 AM(UTC)

                              Not retiring yet

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                              Flatbroke - -    What she means is,  it is just as difficult to take money out of an IRA as it is to get money out   TSP.   In looking for comparisons, I found this: Eligibility
                                                 Now-anyone under age 70 1/2 with earned income can contribute to a IRA.                     You'll qualify if you work full or part time and can use the IRA account in addition to a retirement plan at work such as a 401k or a 403b plan or self employed retirement plans. If that is the case, then at this point,  Angel  needs to decide how to take her money out of TSP.    And since we don't know if the husband is alive (beneficiary  rules), or children (same, beneficiary rules).   Or if Angel is the sole person involved with this situation.  We also don't know -  If Angel loses her husband's SS because she retires, then does her own SS $$  replace her husbands?   or is her figure for SS that much different than her husbands?  And if she is civil service, with NO SS, then what about her own pension?  There are many unanswered questions, that factor in to any decision.  BUT IF SHE CAN'T contribute to an IRA, then all that is left at this point, is TSP, and either her SS, and pension.  Or her TSP, and her SS, with no pension.   (I believe Angel mentioned a daughter, and a financial planner,  but, she needs to find another one who doesn't have to wait for Angel to retire.)

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                                Dot

                                #16 Posted : Wednesday, September 7, 2011 10:37:14 AM(UTC)

                                Angel1955

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                                Let's see now - 41 yrs CSRS - $75,000 TSP - I have minimal SS - had to go to Senator to find out how many quarters I had -40 -  every time I sent in a question on MINE -  got something back on husbands - I am the sole person - over 71 -  - do have a little home equity  CD - savings - no disbursements as I am still "working"  If I am going to be taxed either way TSP or IRA why not take it all out at one time - I know dumb - I think I will take the CD which is over 8 years old and only made $500.00 on $20,000 - and pay off $10,000 I owe on 8 % credit card - -
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                                  zinger1457

                                  #17 Posted : Wednesday, September 7, 2011 11:24:14 AM(UTC)

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                                  Angel, if you take the entire amount out of your TSP all at once it may very likely take you to a higher tax bracket.  You will not only pay higher taxes on the $75K but you will also owe more taxes on any other income you earned this year.

                                  From what I've read so far it sounds like you really need some help from a fee based financial advisor, not one who makes money off the investments they recommend.  Don't take what I or anyone else recommends on this forum as fact, I see a lot of misinformation being given out.
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                                    crs1

                                    #18 Posted : Wednesday, September 7, 2011 11:51:47 AM(UTC)

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                                    zinger1457 wrote:

                                    Angel, if you take the entire amount out of your TSP all at once it may very likely take you to a higher tax bracket.  You will not only pay higher taxes on the $75K but you will also owe more taxes on any other income you earned this year.

                                    Be careful here. If the $75K takes her to a higher tax bracket, remember this is a marginal tax bracket, meaning every dollar of income over the threshold for entering that bracket is taxed at the higher rate. All income below that threshold is taxed the same as before.
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                                      Not retiring yet

                                      #19 Posted : Thursday, September 8, 2011 9:44:11 AM(UTC)

                                      Not retiring yet

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                                      Angel, I will just say, this person, who is on my federal retirement, and was the source for the information of best date to retire, and the reasons.  is: About the Author

                                      Edward A. Zurndorfer is a Certified Financial Planner and Enrolled Agent in Silver Spring, MD. He is a seminar speaker at federal employee retirement seminars throughout the country for the National Institute of Transition Planning, Inc. , and an author of numerous publications on federal employee benefits.                                                                                                                                                                                                                                                                         Perhaps, you can find a way to contact him.
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                                        Knight

                                        #20 Posted : Thursday, September 8, 2011 8:35:25 PM(UTC)

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                                        Ed has a forum (pay and benefits) right here on Fed Soup. Contact him there. Knight2011-09-09 04:42:11
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                                          Can I Roll Over Tsp to Ira While Still Working

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