Thread: TSP to 401k

Yikes...Sorry to hear that you got sucked into that mess also. Unfortunately, your only option at this point is to request a TSP member to member transfer. I'm still working my way out of that mess but thankfully there is a weatherman on the forum that has really helped guide me in the right direction.

I'm not sure about a 401K, but how about transferring to an IRA?

It seems to be possible:

What Should You Do with your TSP When You Leave the Service?

There are 5 options for your TSP account.

1. Leave the assets in your TSP account.
2. Roll your TSP account assets into an IRA
3. Roll your TSP account into your new employer’s 401(k) plan.
4. Withdraw your TSP account assets in a lump sum.
5. Transfer your TSP account assets to a qualified annuity.

Let’s take a closer look at your options:
...



What Should You Do with your TSP When You Leave the Service?

It should be an easy custodian to custodian transfer.

Do not accept a disbursement from TSP. If you do than you will get stuck with a 20% IRS holding - at best. If you flub the transfer (if you take a TSP disbursement to yourself) than you will get stuck paying income tax on the whole amount as well.

Talk to your new employer or better yet your employer's 401(k) administrator. It is an easy transfer - but you should never touch a check and should never touch the cash and it should never pass through your personally held accounts. You must have your new employer coordinate the transfer directly through TSP. It happens all the time.