Leaving federal service for private sector - transfer TSP?

Managing your TSP and alternate investment options after retirement or separation from service.

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spin360
Posts: 15
Joined: Sat Sep 04, 2010 8:48 pm

Leaving federal service for private sector - transfer TSP?

Post by spin360 »

I'll be leaving the federal workforce after 8 years to test out the waters in private sector. My new company offers 5% 401k that vests from day 1 without any contribution from my end. I've got about $100k in my TSP--should I roll it into my new 401k or keep it going in TSP? Will I still have access to my TSP account once I leave?

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evilanne
Posts: 1886
Joined: Thu May 14, 2015 6:52 pm

Re: Leaving federal service for private sector - transfer TS

Post by evilanne »

You will still have access to your TSP account. The choice is yours but I would research the options in your new 401K or anywhere else you are considering transferring your money to. Look at the fees and the rules applicable to each options. Many companies will allow you to transfer your retirement balances from other retirement accounts into their plans. If you like TSP and how it works, you might want to keep at least some money there in case you change your mind in the future. Once you close it, there is no going back. I like the simplicity, low fees and being able to manage it myself but it is up to you and your personal situation..

Cpayne09
Posts: 46
Joined: Mon May 05, 2014 1:51 pm

Re: Leaving federal service for private sector - transfer TS

Post by Cpayne09 »

I don't like any of my parent's/uncle's 401Ks. They have the most rediculous interfund transfer rules i've ever seen... but then again, i'm sure it's there for a reason.

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mattch45
Posts: 68
Joined: Sat Nov 21, 2015 3:01 pm

Re: Leaving federal service for private sector - transfer TS

Post by mattch45 »

My past 401ks were not as flexible and had higher fees than the TSP.

In fact, I think that after you leave federal employment, you can continue to regularly roll over the balance of your new 401k into the TSP (assuming it's an eligible plan for transfer). Can anyone confirm that, or am I making things up again?

spin360
Posts: 15
Joined: Sat Sep 04, 2010 8:48 pm

Re: Leaving federal service for private sector - transfer TS

Post by spin360 »

mattch45 wrote:My past 401ks were not as flexible and had higher fees than the TSP.

In fact, I think that after you leave federal employment, you can continue to regularly roll over the balance of your new 401k into the TSP (assuming it's an eligible plan for transfer). Can anyone confirm that, or am I making things up again?


If I can continue to control my TSP account and roll my future 401k into it, that would be perfect!

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G $16.56 0.00% 0.34%
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