How To Roll Over a Roth Thrift Savings Plan (TSP) to a Roth IRA

Taking the wrong step could be costly.

Public sector workers with a Thrift Saving Plan (TSP) may be tempted to move their retirement funds elsewhere. TSPs, though generally great products, aren’t flawless and tend to lose their appeal once the participant’s days as a federal employee are over.
A popular option is to move accumulated capital into a separate individual retirement account (IRA). If your retirement contributions have already been taxed and are sitting in a Roth TSP, opening a Roth IRA, an account that also is funded with after-tax dollars, to house your savings can make a lot of sense. These accounts offer a wider selection of investment options and more flexible withdrawal rules, including the option to let your retirement money sit there for as long as you like.

In this article, we’ll talk you through how to move your retirement funds from a Roth TSP to a Roth IRA and flag the most important things to be aware of before proceeding. Click HERE to read more.