TSP rollovers to traditional IRA now on-line

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Topic Author
chemocean
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Joined: Mon Dec 19, 2016 8:45 pm

TSP rollovers to traditional IRA now on-line

Post by chemocean »

There is a log a chatter about the login.gov for TSP accounts.
I thought I would note an improvement.
If your recall the previous paper process of partial rollover of TSP to IRA custodians was , 1) you fill out the form online and printed it, 2) you had your and your wife's (for FERS accounts) signature notarized, 3) then you sent the notarized form to your receiving custodian to accept the rollover transfer and they send the form back to you, and then finally, 4) you sent the package with all the signatures to TSP and waited for them to push the funds to the custodian of your traditional IRA>

I had no problem with establishing a the login.gov for TSP.
Last week I initiated a partial withdrawal of my TSP (in G account) to a Vanguard traditional IRA. When I got to the part of the process of identifying the physical address where the check was to go, I had to look into the Vanguard website (PO box in El Paso, TX). When I entered the Vanguard data, TSP came back to me and said something like "we need to verify your account with the custodian at the physical address that you listed". I equate this process to 1) sending the paper form to Vanguard to sign for the acceptance of the specific rollover for the previous paper process, or 2) two trial deposits when establishing an external bank transfer.
Either way, I got an email today that I had some documentation available at TSP. When I went through the rollover process today, my Vanguard account was listed as an option in the dropdown menu and I was successfully able to request the partial rollover.

If there is glitch in the partial rollover appearing in my settlement account (yes, I just upgraded my account to the brokerage platform because of the new fees on the mutual fund only platform), I will update this thread.

I assume the Vanguard option will be there next time I wish to do a partial rollover without the verification process. I also assume also that I can add other IRA custodians in the future expecting the same 7-day delay for verification of the acceptance/IRA account.
khunron
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Joined: Tue Apr 18, 2017 6:29 pm

Re: TSP rollovers to traditional IRA now on-line

Post by khunron »

Did it show that they will withhold 20% for taxes? I've been trying to do the same thing and each time I've tried over the last few weeks I get the same thing. A direct rollover is not a taxable event, so if there's a way to do it without withholding taxes then it's not very intuitive.

I've decided to wait until next year and withdraw everything. Any benefits to having a TSP account do not outweigh the hassle of trying to get access to your own money.
Fishing50
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Re: TSP rollovers to traditional IRA now on-line

Post by Fishing50 »

khunron wrote: Sun Aug 14, 2022 6:52 am Did it show that they will withhold 20% for taxes? I've been trying to do the same thing and each time I've tried over the last few weeks I get the same thing. A direct rollover is not a taxable event, so if there's a way to do it without withholding taxes then it's not very intuitive.

I've decided to wait until next year and withdraw everything. Any benefits to having a TSP account do not outweigh the hassle of trying to get access to your own money.
khunron-
During the withdrawal process for a rollover I think the TSP terms 'taxable/taxable and non taxable/cash' are confusing, which then causes withholding which wasn't intended.

If you change those options, you will eventually get the withholding as you desire.
I agree with OP, this new process is an improvement.

My Roth TSP rollover went extremely well. viewtopic.php?p=6812615#p6812615
My Traditional TSP rollover began yesterday. When I choose rollover only taxable amounts, TSP correctly calculated my tax-exempt amount to be returned to me, along with no withholding.

There's other threads complaining that TSP didn't actually send the rollover check as expected. Hopefully TSP resolved that issue.
Retired Military Officer. 80% equites / 20% bonds for life, ZERO emergency fund, 100% taxable in equities (dividends in cash), 33% taxable, 30% Roth, 37% tax deferred. Gone Fishing At 52yrs old!
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SquawkIdent
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Re: TSP rollovers to traditional IRA now on-line

Post by SquawkIdent »

khunron wrote: Sun Aug 14, 2022 6:52 am Did it show that they will withhold 20% for taxes? I've been trying to do the same thing and each time I've tried over the last few weeks I get the same thing. A direct rollover is not a taxable event, so if there's a way to do it without withholding taxes then it's not very intuitive.

I've decided to wait until next year and withdraw everything. Any benefits to having a TSP account do not outweigh the hassle of trying to get access to your own money.
+1

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Golf maniac
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Re: TSP rollovers to traditional IRA now on-line

Post by Golf maniac »

I rolled my TSP over to Vanguard about a year ago because of issues with my monthly withdrawal from TSP. However, I just went from one clunky system (TSP) to another (Vanguard). At the end of the year I am rolling Vanguard over to Fidelity which, in my opinion, has a much better system and I can have everything at Fidelity to make things easier.
Topic Author
chemocean
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Joined: Mon Dec 19, 2016 8:45 pm

Re: TSP rollovers to traditional IRA now on-line

Post by chemocean »

khunron wrote: Sun Aug 14, 2022 6:52 am Did it show that they will withhold 20% for taxes? I've been trying to do the same thing and each time I've tried over the last few weeks I get the same thing. A direct rollover is not a taxable event, so if there's a way to do it without withholding taxes then it's not very intuitive.

I've decided to wait until next year and withdraw everything. Any benefits to having a TSP account do not outweigh the hassle of trying to get access to your own money.
I don't remember the exact sequence, but after you put in the amount and indicate a rollover, as opposed to a withdrawal, there is another choose to be make for three options at the bottom of that page. I remember one choice was no cash. The first time I went through the process, I got 20% tax withholding. I backed the webpage and chose another choice that sounded appropriate and there was no federal tax withholding as I went through the process. In the end, the whole amount taken out of TSP was being sent to my Traditional Brokerage IRA at Vanguard.
Topic Author
chemocean
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Joined: Mon Dec 19, 2016 8:45 pm

Re: TSP rollovers to traditional IRA now on-line

Post by chemocean »

chemocean wrote: Sun Aug 14, 2022 10:15 am
khunron wrote: Sun Aug 14, 2022 6:52 am Did it show that they will withhold 20% for taxes? I've been trying to do the same thing and each time I've tried over the last few weeks I get the same thing. A direct rollover is not a taxable event, so if there's a way to do it without withholding taxes then it's not very intuitive.

I've decided to wait until next year and withdraw everything. Any benefits to having a TSP account do not outweigh the hassle of trying to get access to your own money.
I don't remember the exact sequence, but after you put in the amount and indicate a rollover, as opposed to a withdrawal, there is another choose to be make for three options at the bottom of that page. I remember one choice was no cash. The first time I went through the process, I got 20% tax withholding. I backed the webpage and chose another choice that sounded appropriate and there was no federal tax withholding as I went through the process. In the end, the whole amount taken out of TSP was being sent to my Traditional Brokerage IRA at Vanguard.
Actually a got a confirmation that that "the whole amount taken out of TSP was being sent to my Traditional Brokerage IRA at Vanguard." If this does not happen as stated, I will update the thread.
Faith20879
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Joined: Fri Mar 02, 2007 9:16 am

Re: TSP rollovers to traditional IRA now on-line

Post by Faith20879 »

chemocean wrote: Sun Aug 14, 2022 10:19 am
chemocean wrote: Sun Aug 14, 2022 10:15 am
khunron wrote: Sun Aug 14, 2022 6:52 am Did it show that they will withhold 20% for taxes? I've been trying to do the same thing and each time I've tried over the last few weeks I get the same thing. A direct rollover is not a taxable event, so if there's a way to do it without withholding taxes then it's not very intuitive.

I've decided to wait until next year and withdraw everything. Any benefits to having a TSP account do not outweigh the hassle of trying to get access to your own money.
I don't remember the exact sequence, but after you put in the amount and indicate a rollover, as opposed to a withdrawal, there is another choose to be make for three options at the bottom of that page. I remember one choice was no cash. The first time I went through the process, I got 20% tax withholding. I backed the webpage and chose another choice that sounded appropriate and there was no federal tax withholding as I went through the process. In the end, the whole amount taken out of TSP was being sent to my Traditional Brokerage IRA at Vanguard.
Actually a got a confirmation that that "the whole amount taken out of TSP was being sent to my Traditional Brokerage IRA at Vanguard." If this does not happen as stated, I will update the thread.
Following...
If this works, it'll be a huge improvement from before.
OP thanks for sharing.
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