Has anyone rolled their military TSP plan into Delta's 401K? It looks like the fees and plans are very similar.

 

I have been thinking about doing the same. I am not sure about he fees, though; haven’t researched it enough yet. But it would be nice to house it all in the same place. I stopped contributing to TSP a while back.


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For a second I thought this thread was about being drunk in songtan and your buddies trying to roll you back to the tarumi before the cops shut the gates

 

are they? I thought the TSP had the lowest fees out there.

 

I looked briefly at rolling it to an IRA, but the fees just didnt make sense (TSP is extremely low cost). Honestly never considered the 401k. Curious what you come up with.

 

Just one of many articles on the topic:

https://www.washingtonpost.com/business/as-brokers-urge-ira-rollovers-ex-workers-ditch-their-low-fee-federal-retirement-plan/2014/08/14/53c68dd0-2239-11e4-958c-268a320a60ce_story.html?utm_term=.2a863c57a100

 

Not to mention you can inadvertently take away your ability to make back-door roth contributions if you roll it to an IRA. No broker will tell you about that, only your tax man after you've done it.

 

TSP Expense ratios for all funds are .038% and a couple are at .039%.

Our DPSP Offers an S&P 500 Index fund at .01% a Small & Mid Cap Index fund at .03% and a Bond Index at .02%.

Life cycles funds are .06% and actively managed funds have expense ratios anywhere between .29% to .93%

There is a quarterly maximum administrative fee on the plan of $4.25, so $17 annually. It can't go higher than that unless it is changed in the contract with fidelity. However, this is a maximum and I've never seen a $4.25 quarterly fee. Mine tend to be $1 here, $0.11 there, etc.

For me, having everything in one place is worth it, especially since we have lower cost alternatives depending on what you're looking for. Also, you can roll your TSP into a Fidelity Brokerage Link account which allows you to use your Delta contributions or your TSP Roll over contributions to buy lower cost ETFs such as Vanguard ETFs. The cost is $4.95 to execute these trades and many of the vanguard ETFs have similar expense ratios to that of TSP funds.

I think the article has validity in that these companies will sell you into a specific fund which will have a higher expense ratio. If you can get your money into the DPSP and not let them dictate where you should put the money and do your own research I think you can come out on par with TSP if not better.

 

Thank you so much for the detailed response. I was coming across similar numbers, but as seen above, everyone recommends staying in the TSP. I just wanted to make sure I wasn't missing something. I think I'm going to roll it all into the Delta program.

Cheers!

 

My experience has been really outstanding with Fidelity. They will really do the majority of the leg work to get things transferred and handle the details of these things if there are ever taxes involved. I've found the support to be so good that I left Merrill Edge which offered me 30 commission free trades per month and sent it all to Fidelity even though I pay $4.95 per trade with them. Merrill left me high and dry a couple times in figuring out some very complex tax issues that they could have easily done as they have the resources to do it, Fidelity on the other hand did all the leg work. Just give the Fidelity DPSP Customer Service number a call and they'll tell you exactly what needs to happen.