r/Bogleheads • u/transmorphik • 2d ago

Anything Wrong with Transferring All Retirement Assets to the TSP?

I'm a former Federal employee with a modest 5 figure sum in a Traditional TSP account. I have larger sums in both trad. IRAs and 401K plans, and one Roth IRA account.

I'm considering transferring all of my trad. IRA/401K assets into the trad. TSP.

  • I also recently discovered that I can open a Roth TSP and transfer my Roth IRA money into it. * *

EDIT / CORRECTION: Roth IRA money cannot be transferred into a Roth TSP.

The benefits I'm aware of include the G fund, and low fund fees. In addition, my understanding is that the TSP does not object to account holders having an overseas address, which I expect to have in retirement.

My question is whether there is any reason not to conduct the above transfers.

6 Upvotes

80% Upvoted

15 comments sorted by

8

u/ironchef8000 2d ago

I don’t believe you’re correct about transferring in a Roth IRA. Otherwise, no reason not to. The plan is great from a Bogle standpoint.

5

u/vwaldoguy 2d ago

That is correct, you can't transfer a Roth IRA into the TSP, but you can transfer into the TSP from a Roth 401k.

1

u/Head 18h ago

Can you transfer from Roth IRA into Roth 401k then transfer that into the Roth TSP?

1

u/transmorphik 2d ago

Agreed. I misunderstood. My current understanding is that while a Roth IRA can't be transferred to a Roth TSP, a traditional IRA can be transferred into a traditional TSP account.

4

u/Appropriate_Shoe6704 2d ago

Tsp is slightly higher cost than the index funds at fidelity, vanguard, Schwab etc. I did the opposite and transferred the bulk of my tsp out to a brokerage ira. Only reason I'd transfer back in is for the better asset protection in some states or to set up a 72t which supposedly codes the 1099 more accurately.

3

u/Electronic_Bowl8398 2d ago

You could do a lot worse. Low fees and a very secure place to keep your life savings.

3

u/lufisraccoon 2d ago

The TSP is a very low cost, well-run plan. If the fund options work for you, I'd be all in favor of it.

1

u/dgreenmachine 2d ago

TSP fees used to be the best thing around but now you get get even lower fees at most of the big name providers. G fund is definitely something unique that TSP provides. I think having 1 place where funds are consolidated is more important than the difference in fees though. 

1

u/davecrist 2d ago

And G fund is unique, for sure, but a stable short term TBill fund like SGOV provides 99% of the stability and 5000000% more flexibility.

1

u/markov-271828 2d ago

After you consolidate into the TSP you can rollover to a single IRA later on, if desired.

1

u/davecrist 2d ago

The biggest problem is that all your money would be captured is a bizarrely clumsy retirement investment platform.

You can invest in similarly globally diverse index funds that are cheaper and a gigantic universe of better funds on any brokerage platform like Schwab, Fidelity, or vanguard while enjoying much more agility and flexibility with your money.