Originally Posted by
block30
Sorry, my previous post was meant to read "just for giggles I looked up Thrift Savings Plan"...I think I omitted some words and my post sounds a bit awkward.
I've been doing more reading like this piece:
https://www.tsp.gov/planparticipatio...benefits.shtml
and I see what Satpak says above (and others may have said before in the thread).
However, just to be sure I am understanding this-I could take the Roth IRA I have with American Funds, or the Roth 401k from Fidelity through my civilian employer, and roll them over into TSP? I am setting up a Roth TSP account, not a traditional, by the way.
Thanks, dumb question I know, I just want to be sure I am understanding correctly.
Not a dumb question.
Surprisingly, it looks like the TSP cannot accept a rollover from a Roth 401K......From the TSP website:
https://www.tsp.gov/planparticipatio...erations.shtml
Remember, you may only roll over traditional money into the TSP. The TSP cannot accept rollovers from a Roth 401(k), Roth 403(b), Roth 457(b), or a Roth IRA.
-AND-
The TSP cannot accept transfers from Roth IRAs
*VERY IMPORTANT* when you transfer/rollover IRAs from one custodian to another......if you do decide to do it (and I'd ditch American tomorrow if it was me)......always try to do a "trustee to trustee" transfer meaning that the new custodian directly receives the money your transferring/rolling over without YOU as an intermediary. That entails contacting the custodian that you're transferring TO and filling out their paperwork and letting them handle the transfer with the OLD custodian. That way, you don't get any nasty surprises (taxes, penalties) and there is no withholding of taxes with you being required to make up the difference for the transfer.