UASIT

The other posters are correct...Keep the TSP.....You can keep the TSP and its the best deal out there...Keep the funds there if you can and start a new 401K at your company...TSP is crazy cheap compared to Vaguard - that should tell you something about how cheap it is...Vanguard is known for their low fees...

block30

Retirement Fees: How much are 401(k) fees costing you? - CNNMoney

I just found this...I plugged in my own company, some random ones, and just giggles Thrift Savings Plan. TSP came out the best, as far as I can tell. Not sure the validity of the website, but it does bode well for the TSP.

globalexpress

Fees, whether it's the fee you paid an advisor or the expense ratio of the mutual funds you invest in, or your trading costs, or loads that you pay on investments, are HUGE when compounded over time. An innocuous 1% fee charged by your financial advisor can be tens of thousands of dollars, or even over a hundred thousand dollars over your lifetime. That's why it is so critical to keep your costs to a minimum.

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.

globalexpress

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.

block30

Again, MUCH appreciated for your insights, and that of everyone else. I'm glad this thread was started!!

Yeah, it would be hard to ditch my American Funds. My family and I know the brokers decently well, and its a pretty small town where I grew up. I still visit their office about once a year, and see them around town when I go visit my dad. My dad and I have even hunted their land, and my dad I think still does. So I think I will just "go quiet" for now.

They know I'm in the military, and I'd wager they are aware of the TSP, so it kind of sucks that they didn't mention it. If a business recommends me to someone better suited, I usually try to patronize that first business in some manner as an appreciation of their honesty. So if they had mentioned the TSP I'd be more inclined to invest a few bucks a year with them as sort of small thanks.

Thanks again!

satpak77

just curious, how much education does military provide their members regarding TSP and fund options, etc ?

block30

All I can speak for is my own perspective as a current traditional guardsman, but I would say very little. When I'm called up on Active Duty orders I know Armed Forces Network plays their own version of commercials for TV and radio. Basically AFN commercials are SUPER corny and politically correct versions of what you see and hear on civilian networks...just a little a little teaser to get you thinking. And thinking about TSP I certainly had been, and it was on my short list of things to get into. This thread made me realize just how good TSP is, and I am switching away from American Funds and moving towards TSP in addition to my employer matched Roth 401k.

In short, I think the military could/should do MUCH better reaching out about TSP. Again, just my opinion. I'm just a worker bee, not a spokesperson for any branch or subdivision of the military.

EDIT...I had posted a few months ago asking about National Guard retirement because I honestly only knew what I could find on the internet. I went to the retention office on my base to get the information straight from the horses mouth so to speak. All I was told was look on the internet, and your benefits kick in when you turn 60. The same person handed me some sheets to sign up for TSP because "its a good deal." Gee thanks. So yeah, I had to seek out the information (not the end of the world) but not much information was forth coming. I preferred to get something "official" from my base versus just tooling around the internet, but the forums have turned out to be a great source of guidance on many subjects. Before people attack me for using the forums to make decisions; I think the forums are just a part of using all available resources, and there are some really great people out there once you weed through all the damn trolls!

PorkSoda

Thanks to all for the good advice regarding my original post in this forum thread! I appreciate the help!

UASIT

All the TSP funds did pretty well this year...Except the G, F, and L Income fund...

FedSmith.com - For the Informed Fed!