Thread: Roll over TSP and *seasoned accounts*

Originally Posted by Blarney

OK, maybe I'm nuts but I could have sworn that I read several months ago (but cannot seem to find the answer now) that in order to have your TSP rolled over into another qualified
IRA after retirement, that the account has to be *seasoned* meaning the account needed to be open for three years prior to your request in order for TSP to roll it over. Any of you out there that ran into this or was I
just hallucinating or having a bad dream. I can't seem to find the answer on the TSP site now. Doesn't seem right but I need to know. If I already had an active account outside of TSP I wouldn't worry about it but.. I'm looking
at heading to the barn in a year and a half and would rather rollover to a better plan with much better withdrawal options and flexibility. Yeah yeah yeah, I know all bout the expenses or not..yada yada yada.. Any of you retired folks out there ever heard of this???

I think you are referring to the 5-year rule on Roth IRAs, which is easily identifiable on the irs.gov site. This talks about how to invest in Roth IRAs and withdrawals of the tax free interest portion until it is 5 years old. Check irs.gov

http://www.irs.gov/publications/p590/ch02.html

Thanks Frixxxx, Yes, that is where I read this in the first place. I misunderstood what I read. Sigh of relief......Thanks a bunch!! It's nice to have intelligent/informed people on this board!! Ever think about going to work at TSP.gov?? LOL.

Originally Posted by Blarney

Thanks Frixxxx, Yes, that is where I read this in the first place. I misunderstood what I read. Sigh of relief......Thanks a bunch!! It's nice to have intelligent/informed people on this board!! Ever think about going to work at TSP.gov?? LOL.

Thanks blarney, I have actually contemplated leaving civil service to work at Edward Jones. But we're all here to share what we know!

Your mention of 3-year "seasoning" made me wonder if you had been reading about needing to be "vested" for 3 years before you could take the .gov contribution to your tsp with you if you were to leave. How many years do you have in at this point?

Blarney,

What Frixxx and Alevin said !

FWIW...In my personal experience, I rolled an ancient, untouched traditional IRA, containing a whopping $1K, over to a USAA traditional IRA in 2010, to consolidate my accounts when I relocated to FL.

In 2012, when I retired, I did a partial withdrawal/rollover of most of my TSP to that same "new" IRA...no 3 year "seasoning" required !

Best of luck to you !


Stoplight...

Originally Posted by alevin

Your mention of 3-year "seasoning" made me wonder if you had been reading about needing to be "vested" for 3 years before you could take the .gov contribution to your tsp with you if you were to leave. How many years do you have in at this point?

alevin, Frixxx called it right. I actually read the part about seasoning from the SSA site while I was researching the mechanics of actually rolling TSP over. I've been in FERS since 1985 so I've been vested for a loooooooooooooooooooooooong time now. Throw in eight years in the Army and I'm at thirty eight years now. Thanks for all the input!!