I am presently AD with 5 years in, and 5 left in. I have about $3000 in TSP. I have found T.Rowe Price mutual funds to make alot more sense for investment...similar risk with MUCH MUCH MUCH higher returns.
Yes, I've read all the TSP literature and whatnot, and know that the next step is to call them. BUT---has anyone had success pulling all out of TSP and rolling that $$ into another IRA without RELAD?
Brian- As I assumed, they will not allow me to transfer the $ over to another IRA until I am RELAD. Question for ya... I have been putting into TSP for about 5yrs. I have been experimenting with T.RowePrice for about a year. Their mutual funds seem to be very sturdy and just as low-risk as TSP...but with very higher overall return. For long term investing (for retirement in about 20+) wouldnt a guy like me be best off putting my dough into something like TRowe, with higher returns? I havent chatted with u in awhile, but if you dont want to discuss this here, hit me at jasonjgreene@gmail.com
I have been retired for almost a year now and still do not know where to put the TSP money!
TSP accounts are a "safe bet," but not aggressive enough for someone like you looking for the long haul. No you can't get them out, but you can move them around to the fund with the higher returns.
I'd just let them be, stop putting as much in and start a Roth IRA in one of those funds you think are better. I wish I had not put money into American Century funds. Their Gift Trust turned out to be a dog, a very poorly managed fund that never did get fixed while the market was booming.
I currently have several mutual fund accounts with TRowe Price and invested in TSP 2030 L-fund. I plan on rolling my money in TSP into the Roth IRA account I have set up with TRowe Price. TRowe Price has free investing guide specialist that can give you more assistance.
Rollovers are good, but you are not allowed to roll a TSP fund(s) into a Roth, new or existing. Because the amount you invested in the TSP funds was not counted on your gross income taxes, it must roll over into a traditional IRA. That is the downside of TSP.
Once you are separated or retired you can roll your money from your TSP account into anything you want. Traditional IRA rollover applies when you are rolling over your money from a traditional IRA into TSP.
Yup, you're right! You can do as you wish with the funds, but if it does not roll over into a traditional IRA, there is that tax penalty.
Interesting, I also read where you may withdraw from a traditional IRA for: Disability, Higher Education, First time home buyer, some medical expenses,etc.
Originally posted by Jason_Greene: Been putting into Cappital Appreciation for a year, also a few bucks occasionally into Emerging European and Mediteranean...
Capital Appreciation was the first fund I ever invested in. It has a great long term record. However, it has a new manager. David Giroux just took over last June...so that stellar long-term record doesn't really mean much now that there is a new manager. Just something to keep in mind.
I'll be selling my Capital Appreciation shares (In Roth)come the end up this year...and I'll roll that money in with my 08 contribution into my Vanguard target-retirement fund. I prefer indexing now...that way I won't have to track manager-turnover.
I'll be honest, when I was AD there was no TSP. Now that I am in the Federal Government and have TSP, the one VERY important thing to keep in mind is that TSP is the only 401-K type of account that you can cash in before you are 59 1/2 if you retire from the Fed Government. All others, you have to wait until you are 59 1/2. But if you are in the Fed Government and you retire w/ the minimal age (56 for me) and no less the 10 years of service, you can cash it in because it is part of the current Federal retirement package w/o penalties. At the same time, I do not know if you are AD and retire or RELAD and get a job w/ Uncle Sam, if you can role it into the account you establish as a Fed employee or you have to keep them separate.
