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Thread: Problem making a direct tranfer into TSP from previous employer

  1. #1

    Default Problem making a direct tranfer into TSP from previous employer

    My daughter recently was hired by the VA and is now a TSP contributor. She has had a problem transferring money from her 403 (b) plan to the TSP. First they would not accept the TSP-60 to tranfer monies. She had to request a letter of dertermination on the company letterhead and submit this with another TSP-60 to TSP plan administrators as stated on the back of TSP-60 to open the door for monies to be accepted into her account. The plan provider still refuses to send monies unless my daughter fills out a distribution request on the paperwork of the previous plan provider. She has to modify the paperwork a bit as the transfer request paperwork is more designed for a withdrawal rather than a direct transfer and we want to fill this out accurately to insure direct transfer of all monies and not a withdrawal to her where 20% is withheld by the previous plan provider. It's a a bit of a hassle and I'd be enraged if my money were sitting somewhere for as long as hers has been while she is waiting for things to be straightened out. I'm curious if any of you have had or know someone who has had similar difficulty or have any opinion on this. I might do a little research and potentially get some attention to this problem. TSP was aware of the issue and immediately pointed out that i should request that letter of determination but said most plan providers will accept the TSP-60 without question.


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  3. #2

    Default Re: Problem making a direct tranfer into TSP from previous employer

    Been on the phone with TSP and IRS and am finding the practice of companies stonewalling transfers is pervasive. I suggest we find as much info as possible and see if we can link a fact sheet for employees who encounter this problem.

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  5. #3

    Default Re: Problem making a direct tranfer into TSP from previous employer

    Thanks offtrack. I have not been through that process, but please keep us posted. A fact sheet sounds like a good idea.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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  7. #4

    Default Re: Problem making a direct tranfer into TSP from previous employer

    I've not posted to this thread lately since situation is not resolved and I'm waiting for information from IRS and others. I had a good conversation with a rep at TSP who echoed that the problem in transferring funds is frequent. I would expect the same problems were I to try to direct transfer IRA from a private custodian to another private custodian. It might benefit you to check with your provider's rules to anticipate such problems.

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