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401k and TSP

February 13th, 2013 at 09:10 pm

After High School, I joined the US Army, where I joined into the Thrift Savings Plan, or TSP, which is, for the sake of simplicity, like a 401k plan.

After 10 years of service, I left active duty to pursue my dream of completing my education, which I am happy to report I did (with ZERO student debt to boot!).

I rejoined the workforce after graduation in 2010, and my current company offers a 401k plan, which I am a participating in.

Since I am getting back into getting my financial house in order, the fact that I still had money in the TSP came back to me in the middle of the night. I found the last documents I have from the TSP, which are dated from 2007. I can't log into the TSP website right now though (they changed the account numbers and I have to wait for them to mail me my new logon information) but since my last TSP information I have on file includes the share amounts I have in each fund, I was able to determine, based on closing prices, the market value of my TSP account.

Now, I have to call Fidelity, (the company that is managing my current 401k) to see what I need to do to complete a roll over. While the TSP is a good program and I like the fund options - I can not put any more money into the fund since I am not active duty and I would prefer the balance amount to be in a fund that I can actively manage and add principle to throughout time.

I told my husband that I found some extra retirement savings. He asked me how I could have forgotten that I had the account. The answer to that is simple - when one is not paying attention, the mind tends to forget what it has! Smile

4 Responses to “401k and TSP”

  1. snafu Says:

    Changing 'carriers' of retirement plans can be tricky as there is potential to trigger income tax and penalties if done incorrectly and appears that you are 'cashing out' a retirement account.

    Once you have the TSP account number, I suggest you have Fidelity [employer 401K Plan] complete the transfer process. Meanwhile work out your allocation plan so that you know exactly which funds meet your risk tolerance. It's important to know their Management Expense Ratio since it indirectly affects the value of your holdings.

    You didn't mention your current contributions to your retirement plan but I hope you are at least take advantage of any employer match. It's free money!

  2. Petunia 100 Says:

    You know, the TSP is the very best retirement plan in existence. The costs are almost zero, because it is subsidized with tax dollars. Consider carefully if you really want to give that up. You can never roll back in.

  3. creditcardfree Says:

    Agree with snafu and Petunia.

    You may also have combat contributions in your TSP that are tax free withdrawals...you don't want those rolled into an IRA without VERY CAREFULLY keeping track of those.

    My husband has a TSP...I expect we will keep as is for the duration.

  4. DividendInvestor Says:

    I agree all the seniors commentaters. I am newone in this field but I think dividend investing is a good plan for retirement investing. I wish you search the dividend market once at a time.

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