Decision Tools · Educational Resource
Seven factors to weigh before you decide whether to leave money in the TSP, roll part of it to an IRA, or move it elsewhere.
After retirement you will face a decision about your Thrift Savings Plan. This checklist does not tell you to roll over. It gives you the seven factors a careful fiduciary would weigh, so you can see the whole decision instead of one slice of it. Read the conflict-of-interest disclosure before you decide.
The TSP is known for very low administrative and fund expenses. An IRA or other account may cost more, sometimes much more, once fund fees and any advisory fee are included. Cost compounds over decades.
Ask: What do I pay inside the TSP today, and what would I pay all-in somewhere else, including advisory fees?
The TSP offers a short, deliberately simple menu of core funds and Lifecycle funds. An IRA opens a far wider universe, which adds flexibility and also adds complexity and the chance to make expensive choices.
Ask: Does my plan actually need investments the TSP does not offer, or is the current menu enough for my goals?
The TSP does not manage your withdrawals, coordinate your taxes, or build you a retirement income plan. A managed account can add that oversight. Whether you need it depends on the complexity of your situation and your own comfort managing it.
Ask: Do I want ongoing fiduciary planning wrapped around this money, and is that worth the added cost?
Traditional and Roth balances behave differently, and a move can be structured as a non-taxable rollover when done correctly. Roth TSP now follows Roth rules that change lifetime distribution planning. Mistakes here can trigger avoidable taxes.
Ask: How would a move affect my traditional and Roth balances, and how does that fit my broader tax plan across the transition?
Traditional balances face required minimum distributions beginning at the current RMD age. Roth accounts follow different rules. Where your money sits affects how cleanly you can sequence withdrawals across the TSP, IRAs, taxable accounts, and pensions.
Ask: How does the location of these dollars help or complicate my withdrawal sequence and RMD picture?
Federal and state protections for retirement assets vary by account type and jurisdiction. The protection profile of the TSP may differ from an IRA in your state. This is a legal question, not a marketing point.
Ask: How are these assets protected today, how would that change, and do I need to confirm this with a qualified attorney?
Fewer accounts can be easier to manage and easier for a spouse to administer later. Simplicity has real value. It is also not free if it means leaving behind low costs or a menu that already serves you.
Ask: What makes this easiest for me to manage well, and easiest for my family to handle if I cannot?
A full rollover is not wrong. It simply deserves the most scrutiny, because it is the least reversible and the most consequential.
Conflict-of-Interest Disclosure
Because Exponential Advisors may receive advisory fees on assets managed outside the TSP, we have a financial incentive when a client chooses to roll assets into a managed account. That conflict must be weighed against the client's costs, investment options, service needs, tax situation, and overall planning goals. We disclose this on purpose and up front. A rollover into an account we manage benefits us. That does not make a rollover right or wrong for you. It means you should hold our input to a higher standard, ask what a rollover costs you all-in, and confirm that any recommendation serves your plan before it serves ours.
This tool is educational only and is not a personalized recommendation. Your decision should be evaluated in light of your full financial picture, tax situation, family needs, risk tolerance, and applicable laws and plan rules. Rules and figures change and depend on your circumstances. Verify against current-year data and official sources, and confirm tax and legal questions with the appropriate professional. This is educational information and not individualized tax, legal, or investment advice.
Exponential Advisors LLC is an investment adviser registered with the Texas State Securities Board. Registration with any securities authority does not imply a certain level of skill or training.
Advisory services offered through Exponential Advisors LLC, an investment adviser registered with the state of Texas. Advisory services are only offered where Exponential Advisors and its representatives are properly registered or exempt from registration.
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