Author Topic: 403 B rollover- TSP or Vanguard IRA?  (Read 368 times)

mominca

  • 5 O'Clock Shadow
  • *
  • Posts: 17
403 B rollover- TSP or Vanguard IRA?
« on: November 24, 2019, 08:43:36 AM »
My husband just left his non-profit job for a permanent federal job. I'm helping him figure out what to do with his 403b now.

He currently has his TSP account, the 403b, and a Vanguard roth IRA. I have a Vanguard traditional IRA.

Should we roll the 403b into his TSP or into a Vanguard traditional IRA? He is now starting to contribute to the TSP again. Is it a disadvantage to have a roth IRA, traditional, and TSP? Would it be better to just have the TSP and the Roth? It is most likely that he will continue working for the feds at this point.

terran

  • Magnum Stache
  • ******
  • Posts: 2555
Re: 403 B rollover- TSP or Vanguard IRA?
« Reply #1 on: November 24, 2019, 10:01:22 AM »
My understanding is that the TSP has investment options that are equivalent to what I would in invest in in an IRA, so if there's any chance you might someday be over the income limit to contribute directly to a Roth IRA and might want to make a backdoor Roth contribution, then I would roll it over into the TSP. If you were asking about a 401(k)/403(b) with worse investment options than the TSP, then my answer might change.

mominca

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: 403 B rollover- TSP or Vanguard IRA?
« Reply #2 on: November 24, 2019, 11:08:09 AM »
Thanks for the input. We're at about 150k combined yearly salary and in our mid/30's early 40's, it's possible we might get to a point where we wanted to use the backdoor roth. This is great information, this wasn't even on my radar as a possible issue.