I’ve been out of the AF for about a year now, got about 80k sitting in my roth TSP split 80% C and 20% S. I also have my regular roth IRA though that’s entirely in vanguards 2060 retirement fund.
Moving it all into the Roth IRA would mainly just make things simple, one fewer account to worry about. Is there anything not to do this though? I’ll be working in the civilian sector soon, don’t see myself getting a gov job.
Any reason not to move TSP Roth to Roth IRA?
byu/ohoian inMilitaryFinance
Posted by ohoian
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The only reason not to accept the possibility that the cost to manage the account might be higher.
401k’s have better federal protections from creditors, which means IRA creditor protections are up to the states. Many states do well to protect them, but some don’t offer as much protection as what 401k’s have.
Beyond that, it’s generally preferable to move money from TSP to an IRA for many reasons. The only thing you can’t do is roll a Roth IRA back into TSP….so you lose access to the G fund if you roll your Roth TSP out.
I’ve been out for 2.5 years now. $400k in 80% C Fund, 20% S Fund.
I’m planning on leaving it there as it’s a retirement account and I went to mentally carve it out for after age 59.5.
If simplicity and account consolidation is important to you, it’s fine. Just make sure Roth money goes to Roth and Traditional to Traditional.
Leaving some money in your TSP for G Fund access is an argument I’ve heard. Since G fund is a Treasury product unique to the TSP. Not a strong argument in my mind, but something to consider.
You can also leave the TSP open and if you have future jobs with below average 401ks, you can rollover the 401k into the low cost and simple TSP.
https://themilitarywallet.com/thrift-savings-plan-tsp-ira-rollover/
Move it to your own IRA. You can find cheaper funds these days that follow the same indices, or pick whatever investment strategies you want.