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Regular Ira To Government Tsp

Insurance & Special Deals for Seniors

Regular Ira To Government Tsp

Postby Marji » Tue Jul 12, 2016 1:32 am

I have about  $170K in one traditional IRA of which about $12,000 is non-deducatable contributions.  How can I roll the maximum  money to a Federal TSP account  and exclude the non-deducatable contributions from going into the TSP, since only deducatable contributions may go to the TSP?  Can I leave the $12,000 in the IRA?
Marji
 
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Regular Ira To Government Tsp

Postby Morthwyl » Tue Jul 12, 2016 2:49 pm

I have about  $170K in one traditional IRA of which about $12,000 is non-deducatable contributions.  How can I roll the maximum  money to a Federal TSP account  and exclude the non-deducatable contributions from going into the TSP, since only deducatable contributions may go to the TSP?  Can I leave the $12,000 in the IRA?
Morthwyl
 
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Regular Ira To Government Tsp

Postby Randall » Fri Jul 15, 2016 4:26 am

The Financial Quarterb

Jim thanks for your question. You are indeed able to rollover your IRA into your TSP by completing form TSP-60. Your non-deductible contributions would remain in your IRA. Let me guess, you would like to move your IRA into the TSP because it's cheap. Well that makes very good sense. However, I usually recommend that people do not rollover their money back into a company plan or TSP. Even though I preach on the benefits of passive investing(investing only in index funds), you will NEVER be able to get the asset allocation opportunities in your TSP as you have available in your IRA using ETF's, index funds, or structured index funds. In addition, you have the Roth conversion opportunity which might be beneficial to you now or into the future. Just my thoughts and hope this helps.  
Randall
 
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