Roll over good 401(k) into TSP?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Cash
Posts: 1572
Joined: Wed Mar 10, 2010 9:52 am

Roll over good 401(k) into TSP?

Post by Cash »

I am about to have access to the TSP due to a job change. My current 401(k) is pretty good. I use the brokerage option to purchase Vanguard ETFs and TIPS. There is no charge for the brokerage option, but I do pay $12 per ETF trade and $50 per TIPS purchase. With TSP, I'd probably use the G fund instead of TIPS (I would continue to purchase a smaller amount of TIPS elsewhere). And I have enough space in my other accounts to round out international and to tilt toward small value. Any opinions on whether I should keep my old 401(k)?
Last edited by Cash on Sat May 03, 2014 9:39 am, edited 1 time in total.
2stepsbehind
Posts: 894
Joined: Wed Jun 20, 2007 10:03 am

Re: Roll over good 401(k) into TSP?

Post by 2stepsbehind »

I would move your 401k to tsp. You cannot beat the rock bottom expense ratios and access to the G fund. :)
TSR
Posts: 1252
Joined: Thu Apr 19, 2012 9:08 am

Re: Roll over good 401(k) into TSP?

Post by TSR »

Once you start investing in the TSP, you will probably come to love it for its simplicity and low cost. Absolutely no reason not to roll the 401k into it (I did with mine), so go ahead and do it soon.

Best of luck!
User avatar
hoppy08520
Posts: 2193
Joined: Sat Feb 18, 2012 10:36 am

Re: Roll over good 401(k) into TSP?

Post by hoppy08520 »

I'd be way of leaving your old 401(k) where it is. You often read about people who have issues with an old 401(k). Moreover, you might be paying AUM fees on it.

You could roll it over to an IRA at Vanguard. Or right to the TSP. Some advantages of keeping all or part of it at Vanguard is that you have more investment options than the TSP has; on the other hand, the TSP has the G Fund. And you mention that you have enough space in other accounts to hold all the asset classes you need.

Only other reason to keep the money in a IRA compared to the TSP is if you can envision doing Roth IRA conversions at some point with those funds. You cannot (currently) do that in the TSP, although the TSP is considering providing that option.
Topic Author
Cash
Posts: 1572
Joined: Wed Mar 10, 2010 9:52 am

Re: Roll over good 401(k) into TSP?

Post by Cash »

Thanks for the replies! I was leaning toward rolling it over and it looks like that is the consensus.
Post Reply