Should I transfer my TSP to a 401k?

There are normally no tax consequences involved in rolling a TSP balance over to a 401k or other retirement plan. However, if you take the money directly, you only have 60 days to complete the transfer to your new 401k or you could be charged interest and penalties.

Can I contribute to a TSP and 401k?

You’re allowed to have both a 401(k) and a TSP and may contribute to each during the year. You may contribute to both plans if you worked for the government and a private employer.

Should I contribute to Roth TSP or traditional TSP?

For most, the Roth TSP is the better choice because currently, you’re in a lower tax bracket than you’ll be in the future. In the Traditional TSP, the money you contribute is pre-tax. This means you don’t pay taxes at the time you put the money in instead you’ll pay taxes when you withdraw the funds.

Does traditional TSP reduce taxable income?

Contributions to the traditional TSP reduce one’s taxable salary resulting in a lower AGI and current year tax savings. Distributions from the deductible traditional IRA and traditional TSP are fully taxable at ordinary tax rates.

How do I avoid paying taxes on TSP?

If you want to avoid paying taxes on the money in your TSP account for as long as possible, do not to take any withdrawals until the IRS requires you to do so. By law, you are required to take required minimum distributions (RMDs) beginning the year you turn 72.

What happens to my TSP money if I die?

The death benefit payment will be made directly to the beneficiary or to an “inherited” IRA. If a beneficiary participant dies, the new beneficiary(ies) cannot continue to maintain the account in the TSP. Also, the death benefit payment can- not be transferred or rolled over into any type of IRA or plan.

Do I need to report my TSP on my taxes?

The TSP does not withhold for state or local income tax. However, on IRS Form 1099-R, we do report all TSP distributions to the taxpayer’s state of residence at the time of the payment (if that state has an income tax). The taxpayer may need to pay state and local income tax on the payment.

What age can I withdraw TSP without penalty?

age 59½ or older

Should I use my TSP to pay off debt?

Even after you retire, you still want to contribute to savings accounts because these little situations will and can occur. With few exceptions, we rarely advise taking monies out of the TSP to pay down debt. The cost of doing so is generally greater than the benefit.

What is the most moved to state?

Top 10 states people moved from:

New Jersey (68.5%)
Illinois (66.5%)
New York (63.1%)
Connecticut (63.0%)
Kansas (58.5%)
Ohio (57.8%)
California (56.9%)
Michigan (56.9%)