Author Topic: Military - Thrift Savings Plan and Civilian Transition  (Read 1014 times)

Fudge102

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Military - Thrift Savings Plan and Civilian Transition
« on: January 25, 2017, 12:44:54 PM »
Alright, I have a question for the financial guru's out there and I can't find an answer that clears it up for me...

10 years ago, I did NOT invest in the TSP while on active duty.  The way they described it back then and with my more limited knowledge, it sounded like a bad deal.  In the meantime, I've just invested in funds and have a roth IRA as my primary investment means.

Fast forward in time to now.  I'm getting out of the military and have two months to go where I could put some cash into a TSP.  I know that if you have at least $200 invested, you can keep your TSP.  Right now, I took the extra promotion money and have been adding that to my Vanguard account.  I was thinking, I could take that instead and put it into a TSP instead.

My question, is it worth it?  What exact benefits do I get from having about $1400 in an account I won't be able to add anything to in about 2 months?  Thanks and any advice appreciated!

Fomerly known as something

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Re: Military - Thrift Savings Plan and Civilian Transition
« Reply #1 on: January 25, 2017, 01:33:45 PM »
I'd say it depends on your plans post military and your tax situation.  You could shelter the $1400 and transfer it into your ROTH from the TSP Roth as a roll over so you would contribute $5,500 + $1400 for this year.  If you think you will ever go into the Federal Government you could just let that $1400 ride there at low fees.

Fudge102

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Re: Military - Thrift Savings Plan and Civilian Transition
« Reply #2 on: January 26, 2017, 01:05:18 PM »
Well right now I just don't want to deal with the government bureaucracy anymore so I'd say the second option is out.  But 1400 rolled over would be a nice chunk into the roth.  Didn't know you could do that.  From what I understood it was it's own thing after you left and would just sit there...

fatcow240

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Re: Military - Thrift Savings Plan and Civilian Transition
« Reply #3 on: January 26, 2017, 01:24:46 PM »
I left my money in TSP after getting out.  You can still transfer your money between TSP funds.  I like the TSP funds and plan on leaving the money there.  I can always roll it over to an IRA.