adding to TSP after Retirement
Moderator: Aitrus
adding to TSP after Retirement
Several postings here have said that once a Federal Employee Retires he can no longer add to his TSP. I recently took a retirement class and was told you can create a traditional IRA after retirement, add money to it, and roll over to the TSP. Is that not correct. Only problem with creating a new IRA on the outside is the limits based on income.
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- Posts: 4330
- Joined: Tue Aug 19, 2008 8:51 pm
Re: adding to TSP after Retirement
I suspect the standard rules for any IRA/401k apply here. First, you would need employment income from which money could be contributed to a new IRA/401k. Then you would have to change employers to roll your new IRA/401k into your existing TSP account. I would personally not recommend it. If you roll the "new" IRA/401k from the employer sponsored program into a brokerage account you can take advantage of ETFs and individual stocks. Wouldn't you have liked to own a thousand shares of Netflix purchased 1 January in a tax deferred status? Can't currently do that in the TSP. But you could have done it in a self directed rollover IRA/401k.
Re: adding to TSP after Retirement
crondanet5 wrote:I suspect the standard rules for any IRA/401k apply here. First, you would need employment income from which money could be contributed to a new IRA/401k. Then you would have to change employers to roll your new IRA/401k into your existing TSP account. I would personally not recommend it. If you roll the "new" IRA/401k from the employer sponsored program into a brokerage account you can take advantage of ETFs and individual stocks. Wouldn't you have liked to own a thousand shares of Netflix purchased 1 January in a tax deferred status? Can't currently do that in the TSP. But you could have done it in a self directed rollover IRA/401k.
Instead of rolling your IRA into your TSP account when you retire, why not create or maintain a IRA brokerage account, and then when you retire, just roll your TSP into this account? Then you can trade on this account and hopefully make a few percent a year. While I will not be high risk in this scenario, I would definitely try to take advantage of any 2008/09 type crashes to make good money even in retirement.
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