Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
I have an idea but I'm not sure it'll work legally or if I'm missing some information.
I work for the government and currently contribute 5% (tax deferred) into my Thrift Savings Plan (TSP) since my agency matches up to 5% (100% of first 3% then 50% of other 2%). This account has been growing steadily (but not as fast as I'd like). There aren't many investment vehicles in a TSP aside from the funds the few funds they have.
Would it be possible or even legal (I know, seek professional legal advice yada yada) to continue contributing 5% (or more) into my TSP to take advantage of the "free money" being matched by the government and then roll the balance every year into a tax deferred SD-IRA so I can invest that money freely?
I have an idea but I'm not sure it'll work legally or if I'm missing some information.
I work for the government and currently contribute 5% (tax deferred) into my Thrift Savings Plan (TSP) since my agency matches up to 5% (100% of first 3% then 50% of other 2%). This account has been growing steadily (but not as fast as I'd like). There aren't many investment vehicles in a TSP aside from the funds the few funds they have.
Would it be possible or even legal (I know, seek professional legal advice yada yada) to continue contributing 5% (or more) into my TSP to take advantage of the "free money" being matched by the government and then roll the balance every year into a tax deferred SD-IRA so I can invest that money freely?
If TSPs are anything like 401ks, it will depend on the rules of your particular plan. Rollovers of funds out of the account may or may not be allowed. Maybe ask your benefits/HR dept?