I think you are going to have same issues following any plan whether it is TSP or in an outside IRA.ND_Steel wrote: Am I missing something?
Based on these numbers, I am leaning to doing a direct rollover. While I understand the concepts of playing the probabilities in TSP, it is still a bit stressful and risky to me. I have tried to follow a plan a little, but if my move out of stocks according to the plan hasn't gone my way I find it difficult to jump back in at a higher price...thus abandoning the plan in hopes that the market drops (that's where I'm at now...no China deal for the time being please ).
Would a direct roll over have an tax implications or would it simply be still designated as a 401k tax-deferred (as most of my TSP is traditional)? Some of it is tax-exempt from contributions in a war zone. How is this taken into account? Probably questions for T Rowe and TSP, but appreciate any objective opinions from the knowledgeable here as well.
Sorry, a lot above to digest...always appreciate your conversations and thoughts.
A Trustee to Trustee rollover has no Tax Impact. You just do not want them to send you a check. If you decide to rollover, suggest you follow ArrieS advice of leaving a small amount in TSP so you can go back to the TSP later if the grass isn't greener on the other side.
--If you have any after tax money in Military account, that cannot be combined with Civilian account. If you do have after tax/deployment money, you need to make sure to document that in any new account or see if it can be separated into a Roth Account.
--Based on your age, you will be limited on how you can access you TSP or IRA money without 10% penalty before you reach 59.5. To avoid penalty, funds must qualify for exception--most common would be SEPP or life expectancy payments that is based on your account balance and age.