TSP Features for Civilians

Rollovers and Transfers into the TSP

Can I transfer or roll over money from an existing retirement plan to the TSP? 

Yes.  Whether you are an active or separated Federal employee you can transfer or roll over money from a traditional IRA or an eligible employer plan into your existing TSP account.  If you are separated from service, you can transfer money into your TSP account unless you have already made a full withdrawal of your account or are receiving monthly payments.

The TSP can accept funds that were distributed from a traditional IRA or an eligible employer plan (or its designated financial institution).  The money that you are transferring or rolling over must be considered an "eligible distribution" under the Internal Revenue Code.  If you are considering a transfer, you should check with the administrator of the plan from which you wish to transfer the money (or your tax advisor) to ensure that the funds are eligible for transfer or rollover.

Note:  The TSP can only accept transfers that consist of before-tax money.  The money will be subject to income tax when it is eventually paid to you from your TSP account.

How do I transfer money into my TSP account? 

There are two methods for transferring money into your TSP account from a traditional IRA or eligible employer plan.  If you have not received the money from your former plan, but wish to have the IRA or plan transfer money directly to the TSP (also referred to as a "direct rollover"), you must complete Form TSP-60, Request for a Transfer Into the TSP, and certify that the distribution is eligible for transfer to the TSP; then give it to the administrator of the IRA or plan so that the IRA or plan can certify that your distribution is from a traditional IRA or an eligible employer plan.  Your former plan can then send the completed Form TSP-60 and the funds to the TSP.  In this situation, the money is transferred to the TSP before taxes are withheld.

If you receive the money from your former plan before you decide to transfer it into the TSP, you will have 60 days to roll over the funds, beginning on the date you receive the funds.  After that, the distribution will not be eligible for rollover.  You may roll over all or part of the distribution.  However, because your former plan should have withheld the appropriate amount of taxes when it sent you the distribution, you will have to make up the difference from your own funds if you want to roll over the entire amount.

To roll over the distribution you received into the TSP, you must complete Form TSP-60.  You must specify the date on which you received the distribution from your former IRA or plan and you must certify that the distribution meets the requirements to be eligible for transfer to the TSP.  The trustee or administrator of your former IRA or plan certifies on the form that the funds were distributed from an eligible retirement plan.  You must then submit the form to the TSP along with a personal check or money order.  Checks or money orders must be made payable to the Thrift Savings Plan for the entire amount you are rolling over.  The TSP must receive the form and the check within 60 days of the date you received the funds.

Whether you or your IRA or plan sends a check or money order to the TSP, the check, money order, or any other attached document must include your Social Security number to ensure that the funds can be credited to the proper account.  If the account cannot be identified, the check or money order will be returned to the sender.

What happens to my transfer or rollover when it is deposited into the TSP? 

Once the TSP receives a properly completed Form TSP-60 and your check or money order, the funds will be invested in your account according to your most recent contribution allocation.  If you haven't made a contribution allocation, the funds will be invested in the G Fund. 

These funds will be treated as employee contributions, but they will not be subject to the IRS annual elective deferral limit.  Once the money is deposited in your account, it will be available for the same purposes as the rest of your employee contributions.  It will not be segregated from the rest of the money in your account, and any elections (e.g., interfund transfers, withdrawals, etc.) you make will apply to your entire account balance, including the transferred money.

In addition, these funds will be subject to the same rules and regulations as any other employee contributions to the TSP.  For example, spouses' rights rules affect all the money in your account, including money that was transferred or rolled over from an IRA or plan.  The money can also be subject to a court order against your account.