Move Money into TSP: You can transfer funds to your existing TSP account from eligible retirement plans like a 401(k), 403(b), or traditional IRA. Contributions that can be rolled over to the TSP have a number of benefits, and you can use this option even after you retire.
You can consolidate your retirement savings in one place with rollovers, making it simpler to determine whether you are on track to achieve your objectives with the appropriate asset allocation. Your TSP account’s low-cost funds, which typically cost less than those in other employer plans, can also help your savings grow more quickly.
How to roll over money to Thrift Savings Plan account
Move Money into TSP: You can transfer funds from an eligible plan into your TSP account in one of two ways: our rollover concierge service as well as the My Account self-service option.
TSP rollover concierge service:
Call the ThriftLine and follow the prompts to access the rollover concierge service.
A rollover specialist will assist you with each step of the process. They’ll contact the providers who administer the account you’re rolling over to the TSP, complete distribution paperwork on your behalf, and contact you for any signatures needed to finalize the rollover. Then the specialist will ensure that the money you want to roll over enters your TSP account correctly.
Self-service rollovers in My Account: You can use an online tool to start the rollover contribution process when you log in to My Account. You will make a request for a rollover distribution by contacting the provider of your eligible plan. You’ll then send qualified circulation documentation and any rollover checks to the TSP. Follow the rollover instructions and steps in My Account.
There are two types of rollovers: direct and indirect. A direct rollover occurs when your money is transferred to the TSP from an eligible employer plan or IRA. At the time of the rollover, money that is directly rolled over is not subject to income tax.
When you do an indirect rollover, the money is sent to you by the plan or IRA, and you send all or some of it to the TSP. In most cases, you have 60 days to complete the rollover after receiving the funds. Your IRA or plan will deduct the appropriate amount for taxes during an indirect rollover. Therefore, you must add money to compensate for the amount that was withheld if your intention is to roll over the entire distribution to the TSP and continue to defer taxes.
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