Solutions 4 Financial Independence: 9/18/18

Published: Sep. 18, 2018 at 4:45 PM EDT
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Question: Two years ago I rolled over my government TSA into an IRA. I am still working and wanting to know if I can roll over the additional accumulation in my TSA?

Answer (John Halterman, Beacon Wealth Management): "What he's talking about is what we call an in-service rollover. When he refers to TSA, he's talking about his thrift savings plan. The rules are simple. If you're a government employee and you have not retired but you're older than the age of 59 1/2 and you have the full ability to roll that money into an IRA and to me - that's smart money right there. That's a good decision because now instead of just being limited to the choices at the government, now you're open to the whole entire world of choosing any investment that you want. So it gives you, definitely a lot more options.

"That's the positive. Now here's the negative. You're still working, so the government, even though they are nice on the in-service one time, they only allow it to be a one time deal. You will not be allowed to roll over the remaining balance until you actually retire. So, good for you that you took advantage of the one-time rollover but unfortunately you have to wait until the end now to go ahead and roll over the difference."