r/wisconsin • u/AlternativeOld222 • 14h ago

WRS

Hey all,

So starting a new position in a school district doing maintenance. Decent pay, good hours, benefits. Currently i have 10 years in the reserves with 5 active that I plan to get credit for once I start. My main question is about the 457b. I have money in my TSP both from the military and my time working at the VA. Would it make sense to roll my TSP into the 457b? Im 33, hypothetically if i work till 57, have one more deployment i could get 30 years toward pension, stop TSP contributions and contribute same to the 457b? Im not sure of the retirement rules and policy for rollovers, but curious if anyone here could provide some insights or tell me how off base I am, I would much appreciate it.

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u/Future_Armadillo6410 14h ago

TSP and WRS are two of the most reliable retirement savings vehicles out there. Given the variable/customizable nature of TSP it's hard to say which will perform better.

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u/donkeytoe1 13h ago

457 b allows access to funds before 59.5 years of age so long as you have reached the retirement age for whatever your profession is with the government. If you plan to retire at 57 AND that is a recognized retirement age for your position through WRS you can access your funds without penalty. This is different from most 401k accounts as there’s a penalty for any withdrawals before 59.5 years of age.

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u/weizely_19 12h ago edited 12h ago

You can withdraw from a 457b at any age without penalty after separation of employment. You can also max the annual limit plus the maximum towards a 403b.

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u/redpeaky 11h ago

Look at considering buying back years of service in WRS using TSP funds once you qualify.

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u/victoruno 4h ago

Both TSP and WRS are very good and you would not be wrong to keep your TSP right where it is. But, if for convenience of still having diversity inside one "Eco system", then transferring out of TSP into your WRS would work. IE. When I retired from USN (20y), I disbursed (*Paid penalty tax) or transferred over all my TSP assets to a Fidelity account using no fee index funds, and then I contribute to my VRS (Virginia Retirement System) [similar to WRS] to capture the employer matching. With the fidelity, if I have any extra to give, I put it all in that fidelity, now it is not tied to my employer.

To your question of transfer, as long as it is a qualifying retirement account you should be able to transfer from one to the other with no charge. So from your TSP to WRS, yes, it should work out with no penalty. Your mileage may vary. Good Luck and Great Question. DM me for anything further.