lost check

[whelandw]

I have a rollover to Schwab IRA "in Progress". Submitted $100K withdrawal to rollover to external IRA at a my Schwab brokerage. Received the confirmation the request was made on 11 December 2025. I also made an additional $100K withdrawal the next day for a different IRA at Fidelity. The money showed up at Fidelity within 4 days. Still waiting for the Schwab account to receive the money (should have been there by 21 December). Have called Schwab several times to see if check had arrived. Thank you USPS.

5 January I called the TSP and after a 30 minute wait for a representative to answer the call, the TSP plan is to cancel the original check and issue a replacement. The rep said it may take 10 days before the request reaches the treasury, then cancel the original check and reissue new check. It may be another 4+ weeks or longer before the check is sent to Schwab. My money has been unavailable for 3 weeks already and I may be looking at another month before I can deploy in the IRA.

Can't understand why the TSP hasn't gone to electronic distribution. My husbands RMDs are sent electronically to the bank, why not to the brokerage.

Sorry for the rant. Just be aware it may happen to you too.

Debby

[Bubba823]

Yet another reason why I left the TSP after I retired. In my case, I started doing rollovers from the TSP to my Vanguard IRAs about a year before I retired. I played it safe on the first one by doing just $1,000. On the next one I rolled over all of my Roth TSP balance to my Roth IRA. After that, I rolled over all but about $500 from my Traditional TSP balance to my Traditional IRA. I had done my research on the whole process, so I knew what to expect. I had both of my Vanguard IRAs set up with the TSP well in advance of the transactions. Luckily, all of my transactions made it safely to my Vanguard accounts in about ten (10) business days. But I was very nervous while waiting for the checks to arrive. Each of my checks went directly into the appropriate IRA’s settlement funds. Shortly after I retired, I moved the rest of my money from my Traditional TSP to Vanguard. I know that conventional wisdom is NEVER close out your TSP account. But my decision was based on thoroughly evaluating my personal financial situation. That included consideration of the TSP being protected from creditors. My 10-year Vanguard return has beaten any of the TSP funds over the same timeframe and my Vanguard expense ratios are also less than those of the TSP. I also invested in a $2M umbrella policy that runs about $300 annually. I know many will say that nobody else has the G-Fund. However, given the fact that TSP does not allow withdrawals strictly from the G-Fund unless that’s where all your money is sitting, I am very happy to keep my cash reserves in my Settlement Fund where it earns about the same as the G-Fund. No regrets.

[Bubba]

Yet another reason why I left the TSP after I retired. In my case, I started doing rollovers from the TSP to my Vanguard IRAs about a year before I retired. I played it safe on the first one by doing just $1,000. On the next one I rolled over all of my Roth TSP balance to my Roth IRA. After that, I rolled over all but about $500 from my Traditional TSP balance to my Traditional IRA. I had done my research on the whole process, so I knew what to expect. I had both of my Vanguard IRAs set up with the TSP well in advance of the transactions. Luckily, all of my transactions made it safely to my Vanguard accounts in about ten (10) business days. But I was very nervous while waiting for the checks to arrive. Each of my checks went directly into the appropriate IRA’s settlement funds. Shortly after I retired, I moved the rest of my money from my Traditional TSP to Vanguard. I know that conventional wisdom is NEVER close out your TSP account. But my decision was based on thoroughly evaluating my personal financial situation. That included consideration of the TSP being protected from creditors. My 10-year Vanguard return has beaten any of the TSP funds over the same timeframe and my Vanguard expense ratios are also less than those of the TSP. I also invested in a $2M umbrella policy that runs about $300 annually. I know many will say that nobody else has the G-Fund. However, given the fact that TSP does not allow withdrawals strictly from the G-Fund unless that’s where all your money is sitting, I am very happy to keep my cash reserves in my Settlement Fund where it earns about the same as the G-Fund. No regrets.

You have to do always do whats best for you.

[evilanne]

Can't understand why the TSP hasn't gone to electronic distribution. My husbands RMDs are sent electronically to the bank, why not to the brokerage.

Debbie, I agree that it is ridiculous not to have electronic transmission from TSP. They have the capability to send your withdrawal or distributions directly to your bank or financial institution. They really do not want you to withdraw any money from TSP & it is to their advantage, they issue the check & take it out of your account so they can draw interest on your money for 10-14 days.

Per AI: You can do electronic rollovers from the TSP to an IRA or brokerage, but the process is specific: the TSP issues a U.S. Treasury check directly to your receiving institution (IRA/brokerage), requiring coordination, and historically, they couldn't do electronic transfers directly to brokerages like a simple ACH, forcing a check method for security and regulatory reasons, though their online system is now more streamlined for direct rollovers. The key is that you initiate it online, they send a check, and the new firm must accept it, keeping Traditional funds with Traditional and Roth with Roth for tax reasons.

My credit unions follows a similar process of sending a check. Still, if I can transfer multiple IRAs from one brokerage to another and actually transfer assets stocks & mutual funds. in addition to cash (certain funds may not be able to transfer but there is never an issue with cash), I don't see why they cannot sent cash directly to the appropriate account electronically.

[whelandw]

Hi EvilAnn - I have been transferring my TSP periodically into Fidelity IRA for many years. (Been retired since 2011). No problem. I even opened a Merrill Edge account years ago so that I can continue my preferred reward status at Bank of America without having to keep much cash in the account; their interest on cash is nil. All the rollover accounts have grown quite well (most over 30% with a mix of index, mutual funds and individual stock picks). Sure can't complain.
TSP is in the process of reissuing the check, but I still haven't received a notification that the check is one its way to Schwab. I wouldn't have sent the money to Schwab except I have an account managed by Edelman and it will be easier to have them cut a QCD check when I finally reach 73 yo. (There are no QCDs from TSP).
Hubby gets his RMD check each month from the TSP at BOA, no problem. He dislikes change so he is staying with TSP. Personally I like investing and like to think it is keeping this old mind a bit sharper, I hope!
Debby