• Question
  • TSP or IRA

    Asked by a 54 year old man from Broomfield, CO on 6/8/2012

    Should I leave ALL of the $400K in the TSP? Or, should I ROLLOVER a portion into a traditional IRA- "deferred fixed indexed annuity"? Leave 70% in TSP and ROLLOVER 30%? Or vice versa?

  • Categories: Thrift Savings Plan - TSP, Pensions and Retirement Benefits


  • 73 year old from Kent, WA

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  • I'm assuming by TSP you mean the government sponsored Thrift Savings Plan https://www.tsp.gov/

    A lot this depends on your goals and risk tolerance. I think you can also break this down into two questions:

    1) Should you rollover? (and into what vehicle - Traditional or ROTH IRA)
    - you can find an overview of this topic here: http://www.newretirement.com/Services/Rollover_Comparison.aspx

    - if you are interested in different rollover options you can find them here: http://www.newretirement.com/rollover-marketplace.aspx

    2) Should you buy a deferred fixed indexed annuity?
    - again this depends on your goals, but you may want to talk to a Fee Only Certified Financial Advisor who is only paid by you, so that you know that their interests are aligned with yours. If you are buying an annuity from an insurance broker they may be earning a high commission on the product you are purchasing which might lead them to suggest a product that is not in your best interest.

    You can find advisors here: http://www.newretirement.com/financial-advisor-marketplace.aspx

    If you do are exploring an annuity you may want to get multiple quotes, so that you can compare prices: https://www.newretirement.com/annuity-marketplace.aspx

    Good luck hope this is helpful.

  • Login to rate this answer:   Answered on 6/8/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.