My brother just accepted his first fed job with the USAF and has a decent chunk in a 401k from his previous job. What should he do with it?
Can it come into the TSP? Could it go to something like Vanguard without tax implications? Thanks in advance!
I've only ever been a Fed since college, so I've never thought about moving retirement $
If it was me, I'd roll it into a brokerage company which will have far more fund flexibility and less restrictions (like the 2 IFT limit) than the TSP comes with. Note, there is a time limit to do it penalty free so he might want to look into this sooner than later. Here is Vanguard's advice for rolling it over: https://investor.vanguard.com/401k-roll ... -roll-over
I agree with strohz
The important thing is to make the account grow with prudent research and nimble moves. It is not a passbook savings account, it is a brokerage account. Work it.
If I remember correctly, this 60 day time frame relates to the fact that his 401K may send him a check. Once he receives the check he has 60 days to mail it to the TSP.You cannot roll over Roth money into the TSP and you must complete your rollover within 60 days from the date you receive your funds.
I am almost positive the 60 days has nothing to do with the actual date/time he left his previous employer. I would call the TSP to clarify.
Following Daily Seasonal # 139921 as a general guideline.TimboSlice wrote: "People really need to stop overthinking this."
His private IRA cannot simply (wire) transfer into the TSP.
They will cut him a check for the amount in his private IRA.
He has if memory serves me correctly you have 60 or 90 days (I can't remember which one) to forward the check to TSP and have them deposited into the TSP account.
Tell him to keep good records, because I got audited twice because I rolled over two different IRA's into the TSP. And each time it was because the IRA funds were given to me in check form, so the IRS (thought) I ran with the cash, so tried to count it as additional income. I was able to show all the funds went into the TSP during that 60,90 day window so it went away, but anytime IRA funds and cut to you via check, it will trip an IRS audit.
I wish the TSP allowed private IRA companies to wire transfer, but unfortunately they do not. So it will catch the attention of the IRS.
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Agreed.polom319 wrote:I agree with many, move your 401K into a brokerage account instead of TSP. Many more options to make the most of your money.
Check out ARKK and ARKG. These are ETFs that are actively managed. There are a few other ARK funds if you want to do your research. Yes, the management fees are a little higher (ARKK Expense Ratio 0.75% vs TSP 0.042%), but the returns on these are very good. I only wish I knew about these two years ago.
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Pending AllocationsUnder development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".
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