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 Post Posted: Sat Oct 10, 2015 8:11 pm 
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Joined: Aug 23, 2011
Posts: 764
Flag: United States - South Dakota (41)
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Hello Folks!

Being CSRS I didn't take a lot of advantage of TSP so my balance is relatively small at around $32K. Never the less...the last year I have been working on my non-TSP investment strategies and had reasonable success. I've been trading in Vanguard and Fidelity. I prefer Fidelity because the book keeping is much more straight forward with a single account. Vanguard has 2 accounts. One is for Mutual funds, Money markets and sweeps and the other is for ETFs, Stocks and such. Fidelity works pretty darn straight forward with my Quicken while Vanguard is always a PIA to reconcile.

That being said, I'm not shutting Vanguard out of the running. I'm curious to see if anyone on TSPcenter has made the roll over. Where and why did you pick your destination and re-investment choice?

Being 61 I'm not sure that my time line for continued managing an Roth is in my favor. And unless someone can tell me I'm wrong, I'm not sure I want to pay the federal tax out of my current savings to roll into a Roth. Rolling into a traditional IRA keeps the tax man out of the picture. Our income bracket is 25% and we are nearly at the top of it. If I understand the conversion to Roth I would pay the federal tax on the entire amount which nearly all of it would be 28%. That would require about $10.3K out of my savings/investments. If I am misunderstanding the tax implications of TSP to Roth, I'm all ears.

BTW...I'm familiar with the 5 year rule on principle withdrawal. As I see it, if I make 28% return over 5 years then I've recovered my tax to convert but I'm a little concerned about both making those returns and not needing them and paying a penalty during that 5 years. Of course, it would be closer to 4 years since any part of a year counts as year 1.

Rolling into a traditional IRA would be simple and without any tax implications on the roll over. I would still have the entire $32K and change available to manage and if either I or my wife passed away before pulling it out would be done at a lower tax bracket. In the last 2 years my real life, non-TSP return as been 5-6% on average but would have been higher had the last couple months not been so rough.

Anyway...the floor is open.

_________________
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.


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AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)

S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)

DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)

EFA (I Fund)
iShares MSCI EAFE Index (EFA)