A TSP-to-IRA rollover is a decision about two sets of account rules and the transaction between them. Start with what you want to change and the evidence that the receiving account would provide it. A larger investment menu or a convenient sales presentation does not answer every fee, access, tax and survivor question.
Keeping eligible money in the TSP is one alternative to compare. A partial transaction may raise different questions from moving an entire balance. This worksheet supports that comparison; it does not recommend leaving, transferring, converting or investing a particular amount.
Define the problem before choosing a destination
Write down the specific reason for considering a move: a service need, an investment need, a withdrawal arrangement or another concern. Ask which part of the current TSP rules does or does not meet it. Then require the proposed receiving institution to explain the relevant rule and its costs in writing.
Separate the institution holding the account, the investments inside it and any insurance contract being proposed. An IRA is an account arrangement; its contents and any associated advice or contract terms add another layer. A rollover comparison is incomplete if it compares only one fund expense against an all-in illustration somewhere else.
| Comparison area | Evidence to request |
|---|---|
| Ongoing costs | Administration, investment expenses, advice charges and any contract or transaction charges applicable to the proposal. |
| Access to money | Withdrawal methods, processing requirements, restrictions and any applicable early-distribution exception. |
| Tax categories | Receiving treatment of traditional, Roth and any tax-exempt amounts, plus the required record transfer. |
| Family and legal rights | Spousal rights, beneficiary rules, court-order issues and the professional guidance needed. |
| Investment or contract terms | The actual holdings or contract, risk disclosures, guarantees and the responsible institution. |
| Future service | Who will handle changes, reporting, beneficiary updates and problems after the transfer. |
Ask whether the payment is eligible for rollover
The IRS lists payments that cannot be rolled over, including required minimum distributions. The TSP regulation likewise limits rollovers to amounts permitted by the tax rules. Ask the recordkeeper which part of a proposed payment is eligible before treating the full amount as transferable.
Account status and payment type matter. An in-service distribution, a post-employment payment and a beneficiary payment can have different restrictions. The recipient of a beneficiary participant account after that participant's death also should not assume ordinary owner rollover choices apply. Use the beneficiary account checklist when inheritance is involved.
Compare a direct rollover with a payment made to you
IRS guidance distinguishes a direct rollover from a distribution paid to the participant and later rolled over. The latter can involve a deadline, withholding and the need to supply money from another source to complete the intended rollover amount. An intention to redeposit money is not evidence that the transaction was completed correctly.
Before requesting either method, confirm the receiving institution, exact account type, accepted payment instructions and the record each institution will issue. Verify those instructions through independently confirmed contact routes. Do not send a TSP login, bank details or account statement through a general inquiry form.
If a payment is already in progress or its receipt is unclear, use the original transaction reference to reconcile it. Do not request another distribution merely because the receiving account has not yet displayed the first one.
Which benefits or exceptions might change?
The reason for comparing the rules is practical. An exception that permits certain qualified-plan distributions after separation may differ from IRA rules. Spousal rights and beneficiary handling can also differ. Ask a qualified tax or legal professional which distinctions apply to your situation before a transfer removes an option you expected to retain.
Roth questions need their own records. The receiving institution should explain any applicable qualification or holding-period treatment rather than assuming that every TSP Roth fact carries over unchanged. A proposed conversion of pre-tax money is a tax-sensitive transaction alongside the rollover decision, not a free change of account label.
An outstanding TSP loan, a required distribution or an unresolved court order deserves a separate checkpoint. Ask the relevant administrator what needs to be resolved and how it affects the proposed transaction. Use the loan and separation guide if a loan is involved.
Make the result auditable to you
Keep the current TSP information, the receiving proposal, dated cost and rule comparisons, professional explanations and transaction confirmations in one private review record. Mark every open question and who will answer it. After processing, compare the amount sent, amount received, tax categories and the documents expected for the tax return.
A complete review may support a move, a different proposal or leaving the account unchanged. The useful outcome is understanding the actual tradeoffs and retaining the evidence, without treating a general retirement article as an individual rollover instruction.
Browse federal benefits, retirement and insurance topics or read how we prepare and check our guides.
Sources
- IRS: Rollovers of retirement plan and IRA distributions, checked November 3, 2026
- eCFR: 5 CFR Part 1650 - Methods of Withdrawing Funds from the Thrift Savings Plan, checked November 3, 2026
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