bruck053
Region: US
Thursday 25 June 2026 14:53:36 GMT
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RealHonestMindset :
Roth TSP for the military didn't start until 2012-2013, so most of us have a lot sitting in Traditional. Pro-tip: Don't rush to roll it over! The TSP has some of the lowest fees in the industry, which is huge for growth. If you do move it to a brokerage like Fidelity or Schwab, make sure you roll 'Traditional to Traditional' to avoid a massive tax bill. If you want to convert to Roth, talk to a tax pro first because the IRS is definitely going to want their cut. Keep it simple: let that low-fee money grow in the TSP and just start your next account fresh elsewhere!"
2026-06-25 20:51:26
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ginneamonique :
Thank you so much! This helped me a lot, during this transition period the military has gotten better with resources but transitioning my TSP over to Roth is something I haven’t gotten a warm and fuzzy break down. So, thank you for providing me with your insights. I will definitely do more research on this, I am looking to make the right move and not the wrong one. Oh by the way, my name is Ginnea but pronounced as “Janay” lol.
2026-06-25 15:51:12
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RealHonestMindset :
Great question. Here are the main options: ✅ Leave it in the TSP: One of the lowest-cost retirement plans available. Your money continues growing tax-advantaged, and there's no requirement to move it after leaving federal service. ✅ Roll a Traditional TSP to a Traditional IRA: A direct rollover to Fidelity, Vanguard, Schwab, or another brokerage provides access to a broader range of investment options while avoiding taxes when done correctly. ✅ Roll a Roth TSP to a Roth IRA: A direct rollover generally preserves the Roth tax advantages and does not create a taxable event when done correctly. ✅ Convert a Traditional TSP to a Roth IRA: This is an option for those who want future qualified withdrawals to be tax-free. However, the amount converted is generally taxable in the year of the conversion. ⚠️Move it to a taxable brokerage account: A TSP cannot be directly rolled into a taxable brokerage account. It would first have to be distributed, which generally creates tax consequences, and if taken before the eligible withdrawal age, could also result in an early withdrawal penalty unless an exception applies. The best option depends on your tax situation, future employment, investment preferences, and long-term financial goals.
2026-06-27 18:55:48
0
Jill Salemno :
Congratulations!! Love this question! Retired mil here, now work for SSA.
2026-06-26 13:05:13
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jordan :
😁😁😁
2026-06-25 15:05:35
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