Скачать или смотреть What To Do With Your TSP When You Separate | TSP ROLLOVER EXPLAINED

Are you leaving federal employment, retiring from the government, getting out of the military, or separating from federal service? A big question you have to ask is what to do with your TSP? Whether you're retiring with a TSP or getting a new job you have the following 3 options...

1) WITHDRAW THE MONEY FROM YOUR TSP:
If you choose to cash out your TSP before age 59.5 you will be hit with taxes and a 10% penalty. However, if you choose to rollover your TSP to a qualified retirement account, such as a 401k or IRA, you won't be penalized.

2) LEAVE MONEY IN TSP:
If you are age 59.5+, you can start withdrawing monthly payments from your TSP. If you worked up until age 55 with the feds, you can start withdrawing early at age 55. If you were a "Special Category" employee (ie Law enforcement, firefighter, air traffic control) and you worked with the government until age 50 you can start withdrawing early at age 50. Once you leave the military or federal government you can no longer contribute more money into your TSP but you can change around your investments within the TSP.

3) BUY ANNUITY WITH TSP:
At retirement age you have the option to buy an "Annuity". The more money you have in your TSP the higher the annuity will pay out. An annuity is similar to an insurance plan, it's a guaranteed agreement unless of course the company you made the agreement with goes under. Right now MetLife is selling the annuities for the TSP. You are trading the lump sum amount of your TSP for a [safe] fixed monthly payment (such as $1,000/month) for the rest of your life. This differs from Option 2 because you are limiting risk but sacrificing that you could have made better monthly returns by doing Option 2.

TSP vs IRA: Rolling over your TSP to an IRA is a popular option. The benefit to a TSP is you may be able to withdraw money before age 59.5, unlike an IRA. The benefit to an IRA is you have many more investment options, better control, and a more user friendly company to work with. If you do want to rollover your TSP to an IRA follow these steps: 1) Open an IRA with a company like Fidelity, Schwab etc. 2) Fill out form TSP 70, and 3) Invest the money once it has been transferred into your IRA.


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This video is not sponsored. Some product links are affiliate links which means if you buy something I may receive a small commission at no extra cost to you. This is not investment advice.

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00:00 Intro
00:32 Option 1 Withdraw
01:20 Option 2 Leave it in TSP
05:23 Option 3 Buy an Annuity
07:12 TSP vs IRA
09:04 How to Rollover TSP