Possible to Transfer some assets from TSP to IRA…

[Boghie]

I know you can rollover assets from your TSP account to an IRA once you separate from government service.

However, is it possible to transfer some assets from your TSP account to an IRA while still in government service? I still want the assets to be in a retirement account, but I may want to hold some assets in actual cash or other hard assets for a period of time. I might want to place assets in real estate, other currencies, our currency, etc… I am concerned about holding my safe investments in debt instruments. The ‘G Fund’ is a debt instrument.

Just thinking…

[Bullitt]

Good question. I'm sure we'd get blasted in taxes if we took, for example, $4000 to front load a Roth IRA every year. I know some guys on the MB take loans to front load their Roth.

[Boghie]

Good question. I'm sure we'd get blasted in taxes if we took, for example, $4000 to front load a Roth IRA every year. I know some guys on the MB take loans to front load their Roth.

But the thought is to take 10% of the TSP account and move it to a Traditional IRA where I can invest in something other than debt instruments and equities.

Maybe some actual cash, some FOREX, hard assets, a money market, maybe REITs, etc...

If we double dip the recession could become a state of mind. That is, a depression...

Anyone think that our current government balance sheet will permit Keynesian borrowing to 'stimulate' the economy? Who will cheer a new WPA? My guess is that the GenXers will force major cutbacks via either direct democracy or a ‘Going Gault’ process. We see this with the Tea Party movement. Look at California’s tax receipts when they raised rates and mandated a 10% increase in withholding. Also, Bernanke just stated that he wouldn’t further inflate the money supply to support more government borrowing. Finally, in a depression mode, who wants to place their life savings in debt?

Obviously, this is a worst case scenario – but, I want to know my options so I can move rapidly. I don’t want to be sitting on my roof waiting for rescue…

[tsptalk]

I believe the only ways to get in-service withdrawals are to take a partial withdrawal but you have to be 59 1/2 to do so, and a hardship withdrawal. With a hardship withdrawal you are restricted from making continued contributions to your TSP account.

[danvee]

I believe the only ways to get in-service withdrawals are to take a partial withdrawal but you have to be 59 1/2 to do so, and a hardship withdrawal. With a hardship withdrawal you are restricted from making continued contributions to your TSP account.

Yes--if you're over 59 1/2 you can do a direct rollover of up to 100% of your TSP asssets into an traditional IRA. (Roth conversions are also possible, but with tax implications of course.) Direct Rollover means you are making no withdrawals and therefore incurring no tax liability since your retirement assets are simply being moved from TSP to another qualified IRA. I made my application to do this last week and expect it to take a month to be completed since the necessary transfer forms have to be signed by your new IRA entity and then mailed back to you for transmittal to the TSP administrator. You can get the information at tsp.gov. Look under forms for TSP-75 or TSP-U-75 if you're in uniformed serivces. Say good bye to reallocation limits and hello to the whole range of investment alternatives and low cost brokerage fees ! (I'm opting for Interactive Brokers myself.)
"11 months and counting"

[tsptalk]

Welcome danvee! Thanks for the info and congrats on your coming retirement!