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A while ago, I was an intern with the federal government. As part of my compensation, I was allowed to contribute to a civilian TSP. I contributed, but elected to take a job in the private sector after I graduated from college, therefore ending my GS employment and my TSP contributions.

The amount in my TSP is fairly minimal (roughly $3,300). My question is this: Should I leave my money in the TSP, or should I roll it over into my Roth IRA? If I do roll it over into a roth, will I incur any expenses or tax obligations because of the move?

Thanks in advance for your help!
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Epi,

If I do roll it over into a roth, will I incur any expenses or tax obligations because of the move?

In a word: Yes!

TSP contributions are pre-tax, while Roth contributions are taxed. Rolling that money into a Roth will force you to take an immediate tax hit. So, you'd want to investigate rolling it into a traditional IRA, if anything.

A talk with a tax professional might be in order. I am not such a creature. That said, here are my thoughts: I do recommend leaving that cash in your TSP account, especially if your tolerance for paperwork and your interest in actively investing that money are low. I think just leaving it in there on cruise control is an easy, super low-cost way to let that money work for you.

These might be of interest to you:

https://www.tsp.gov/lifeevents/separating/separatingFromGovS...

https://www.tsp.gov/PDF/formspubs/tspbk02.pdf

The TSP offers a decent amount of flexibility--I think it's plenty for all but the most hardcore, fund-hating investors. But the real benefit is the ridiculously low cost.

Good luck!
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