I will soon be moving from private industry to a position with the federal government.The Govt offers a similar investing vehicle, the TSP, but I am also considering IRA rollovers.Suggestions for researching my options?Thanks, RS
Roll your 401K(s) into an IRA. 401Ks and TSPs have very high expense ratios.
The Federal TSP may have a limited number of fund options, but it has excellent expense ratios:F and G Funds: 0.018%C, I, S, and L Funds: 0.019%http://tsp.gov/rates/fundsheets.html
TSPs have very high expense ratios. Just curious, where did you get the info that TSP have very high expense ratios? Exactly how high?Hohum
I've had two TSPs (457 Plans) throughout my life. Both were thru the county government. All of the managed stock funds had, IMHO, very high expense ratios. Even the SP500 index fund carried an ER of about 1%.
www.tsp.gov here is the website so you can review more!Dean
personally DW and I love the TSP expense ratios -
I've had two TSPs (457 Plans) throughout my life. Both were thru the county government.While what you had may have been entitled "TSP" (Thrift Savings Plan) - it's not the same TSP that the OP was referring to. The OP specifically said I will soon be moving from private industry to a position with the federal government. The federal government TSP www.tsp.gov has extremely LOW expense ratios.All of the managed stock funds had, IMHO, very high expense ratios. Even the SP500 index fund carried an ER of about 1%.More evidence that the TSP that you had access to is not the same as the one that the OP was referring to - the federal government TSP has no managed funds, and there is no "S&P 500" fund - the options are defined by letter codes.AJ
Thank you for the comments.Other than expense ratios and selection of funds, are there any other considerations to make when choosing between a rollover from an employer plan to an IRA *or* the TSP?I noticed the following statement on the TSP site:<<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.>>So, now I need to ensure the funds I am transferring are considered "eligible"Thanks, RS
So, now I need to ensure the funds I am transferring are considered "eligible"Thanks, RS Personally, I wouldn't roll non-TSP funds over.TSP Options are limited to 5 Funds and 5 Lifecycle options (basically the five Funds in some percentage).While the fees for TSP funds are lower than almost any other plan, having funds outside the TSP can prove to be beneficial in the long run. Two quickly come to minda. One can invest in other areas, and b. One has more access to the funds than in a TSP.YMMV,Hohum
Thank you this leads to conclude that I might do both - roll some $ over into the TSP and roll the remaining $ into an IRA.Thanks again, RS
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |