Leaving Federal Service or Retiring? What Happens to Your TSP?
You dedicated years to federal or military service. Now it's time to understand the choices available for the retirement savings you've worked to build.
If you're separating from service or already retired, you may be eligible to roll over your TSP into an IRA and explore different retirement planning opportunities.
Before withdrawing or transferring your money, find out what options may be available to you.
Free consultation • No obligation • No transfer required
Your Service Has Ended. Your Retirement Planning Hasn't.
Your Thrift Savings Plan was designed to help you build retirement savings throughout your federal or military career.
After leaving service, your financial needs and goals may change. Reviewing your TSP can help you understand whether keeping it or considering an IRA rollover makes sense.
Why Consider a TSP to IRA Rollover?
An IRA may provide different planning opportunities, depending on the provider and your retirement goals.
More Investment Choices
An IRA may offer a wider range of investments than the TSP's available fund lineup. More choices do not automatically mean better results or lower costs.
Consolidate Retirement Accounts
If you have eligible retirement savings from other employers, an IRA rollover may help you bring accounts together for easier organization and review.
Customize Your Retirement Plan
Explore strategies that may fit your retirement income needs, investment preferences, and long-term financial goals.
Important: TSP offers relatively low expenses and features such as the G Fund. An IRA rollover may not be an improvement for everyone. Compare costs, protections, withdrawal rules, and available benefits first.
Thinking About Cashing Out Your TSP? Understand the Tax Consequences First.
A traditional TSP withdrawal is generally subject to federal income tax and may trigger an additional early-distribution tax unless an exception applies.
An eligible direct rollover into a traditional IRA can generally preserve tax deferral. Understanding your choices before taking a distribution may help you avoid unnecessary tax consequences.
Who May Qualify for a TSP Rollover?
Eligibility depends on your employment status, available distributions, and the tax treatment of your TSP funds.
Separated Federal Employees
After leaving federal employment, eligible TSP distributions may be rolled into an IRA or another eligible retirement plan.
Federal Retirees
Retired federal employees may have options to keep their funds in TSP, take withdrawals, or roll over eligible distributions.
Former Military Members
Military personnel who have separated from service may have rollover options, subject to TSP rules and the tax character of their account balances.
Current Federal Employees
Certain in-service withdrawals may be available under TSP rules, including age-based withdrawals for eligible participants age 59½ or older.
What Should You Review Before Leaving TSP?
TSP has features that deserve careful consideration before transferring retirement funds.
TSP Investment Costs
TSP is known for relatively low investment expenses. Compare the total costs of your existing TSP and any proposed IRA before moving.
The G Fund
The G Fund is a unique government securities investment option available through TSP. An IRA does not provide the same G Fund investment.
Withdrawal & Tax Rules
Traditional and Roth balances, early-distribution exceptions, required minimum distributions, and military tax-exempt contributions may affect your rollover decision.
Why a review matters: Some TSP benefits and withdrawal rules may not carry over to an IRA. For example, certain early-distribution exceptions available to employer plans do not apply to IRAs.
Before You Move Your TSP, Know What You're Keeping and What You Could Lose.
You spent years building your retirement savings. Take the time to compare your options before making a withdrawal or rollover decision.
Find out whether your account may qualify for an IRA rollover and explore what may fit your retirement goals.
Common Questions About TSP Rollovers
Answers to important questions about TSP withdrawals, IRA rollovers, and federal retirement savings.
Can I roll over my TSP into an IRA?
Generally, eligible TSP distributions can be rolled into an IRA. Traditional TSP funds can generally be directly rolled into a traditional IRA, while designated Roth TSP funds can generally be rolled into a Roth IRA.
Can I roll over my TSP after retiring from federal service?
Generally, after separating from federal service, you may roll over eligible TSP distributions. You may also be able to keep your funds in TSP, subject to applicable rules.
Will I pay taxes if I transfer my TSP to an IRA?
An eligible direct rollover from a traditional TSP account into a traditional IRA generally does not create immediate federal income tax. Roth conversions and other transactions may be taxable.
Should I keep my money in TSP or roll it into an IRA?
It depends on costs, investment choices, withdrawal needs, creditor protections, and retirement goals. TSP offers relatively low expenses and unique features such as the G Fund, which should be compared carefully.
Can military members roll over their TSP?
Eligible distributions from military TSP accounts may generally be rolled over after separation from service. Special tax rules can apply to tax-exempt contributions made during qualifying combat-zone service.
Can I transfer my TSP while still working for the federal government?
Some in-service withdrawals are available under TSP rules, including certain age-based withdrawals after reaching age 59½. Eligibility and withdrawal restrictions must be confirmed.
Can I roll over only part of my TSP?
Eligible participants may have options for partial withdrawals or rollovers, subject to TSP rules. Required minimum distributions and certain other amounts are not rollover eligible.
What happens to my Roth TSP if I roll it over?
Eligible designated Roth TSP distributions can generally be rolled into a Roth IRA. Different tax rules apply to qualified and nonqualified Roth distributions.
Is there a penalty for rolling over my TSP?
An eligible direct rollover generally avoids the 10% early-distribution tax. However, moving funds may involve fees or the loss of certain TSP features and withdrawal benefits.
How do I know if I qualify for a TSP rollover?
Your employment status, distribution eligibility, account balance types, and applicable TSP rules matter. Request a complimentary consultation to explore your options and identify what information is needed.
Three Steps to Explore Your TSP Options
You can request a review without committing to any rollover.
Request Your Review
Complete a short form with basic information about your TSP and retirement goals.
We Contact You
Our team will contact you at your preferred time to help arrange your complimentary consultation.
Explore Your Options
Discuss eligibility, potential IRA rollover benefits, and important considerations with a qualified professional.
Your TSP May Have More Options Than You Realize.
Whether you're preparing to retire, leaving federal service, or have already separated, understanding your TSP choices can help you plan your next steps.
Explore whether your account may qualify for an IRA rollover before making a decision.
No obligation to move funds or purchase a product.