I am asking if any investors out there who have rolled their TSP into an SDIRA account. I do not have the clear guidelines as to whether or not it can be done. I sent TSP an inquiry regarding this matter, asking if their support team can point me in the right direction.
If anyone has done it, how was it done successfully?
I do not recommend this. If you are still working for the federal government, are under 59 1/2 , and contributing to the TSP this could be considered a withdrawal which would be taxable and incur early withdrawal penalties.
You may want to consider contributing to an IRA outside of the TSP if you meet income guidelines.
Check with your CPA or financial advisor.
Yes I have done it and no it is not a taxable event. All you are doing is rolling it over from one type of qualified retirement plan to another. When you talk to TSP just make sure you say it is a rollover conversion, not a withdrawal (that goes for any plan that you attempt to rollover).
How much are you talking about? Over 100,000 or more? If it isn’t enough to pay cash plus rehab a property in your market I’d leave it where it is. Lower cost and personally for myself it’s just another avenue I have for retirement.
I rolled my entire TSP account over to a financial advisor who managed my non federal government accounts. It was not a SDIRA, but it works the same way. Just fill out the form from the TSP website and send it in. It took about 3 weeks though for the account to fully close and the $ to be transferred.
We do it all the time. No problem.
@Chauncy Gray As long as you have separated from service Rolling a TSP to an IRA (self directed or otherwise) is fine. In some cases you do miss out on earlier retirement distributions from the TSP but that's not usually a problem. Another thing you'll want to verify is whether your TSP is all pre-tax or whether there is any Roth money in there. If there's Roth money that needs to be rolled separately into a Roth IRA (which could be self directed as well).
Thank-you for sharing the information.
I appreciate the help. I wasn't sure as to how often TSP encounters investors wanting to do a rollover into an SDIRA.
Hello @Account Closed,
It is under $100,000.
I will reach out to you.
Thank-you, @Scott Jensen!
@Lynnette E., I will do a little more research. Thank-you for sharing!
Originally posted by @Chauncy Gray:
Hello @Eric C.,
It is under $100,000.
With that zero amount I would just leave it where it is and let it grow and that you’re 59 1/2 retirement bucket.
Take your mind I am also a strictly buy and hold individual. So my advice is slanted towards that. However with the amount of money you can roll over in their fees associated with a self-directed IRA what can you actually do?