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?
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That’s a great question and one I hear often from federal employees. While you’re still actively working under FERS, the Thrift Savings Plan (TSP) does not allow you to roll funds out—whether Roth or Traditional—into an IRA. In-service withdrawals and rollovers are generally restricted until you reach age 59½ (or in some cases, age 55 and separated from service). Once you separate from federal service, you’ll have the option to move your TSP funds to a Traditional or Roth IRA, depending on how your contributions were made.
The important part is knowing when those doors open, how to avoid unnecessary taxes, and how to line this up with your retirement timeline.
If you’d like to talk through your options in more detail, feel free to reach out.
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
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