The Question
Federal Employee FERS Rollover to IRA?Federal Employee FERS Rollover to IRA?
I am 50-years old and a active federal employee under FERS. I do not qualify for any hardships. I have both Roth and Traditional contributions to my Thrift Savings Plan and have been contributing to both for 10-years. Can I transfer or rollover (direct or indirect) out of the TSP to a Roth/traditional IRA?
Thank you for the question. Unfortunately the TSP does not allow you to transfer or rollover your accounts while you are still in active Federal service. You will be able to rollover you accounts once you either separate or retire from Federal employment.
If you are wanting additional options for your retirement funds, you could consider contributing to your TSP to get the full match, but then funding an IRA. You’ll want to do your homework to figure out if it’d be better to do Roth or Traditional or Traditional -> Backdoor Roth. The IRA limits are lower than the TSP contribution limits. In 2025, you could make a $7,000 contribution plus an extra $1,000 since you’re over 50. Any additional retirement money could then go into the TSP.
Mike Hunsberger, ChFC®, CFP®, CCFC
Next Mission Financial Planning
No question, answer, or discussion of any kind facilitated on this site is confidential or constitutes financial or legal advice. Questions answered are selected based on general consumer interest, and not all are addressed. Questions and answers may be displayed online and archived by Wealthtender. To make Wealthtender free for readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a conflict of interest when we favor their promotion over others. Wealthtender is not a client of these financial services providers. Learn more.