The TSP can accept transfers (in its terminology, rollovers) of eligible rollover distributions from qualified retirement plans, or their designated financial institutions, and from conduit individual retirement accounts that were set up to accept such distributions. Participants who are separated from federal service still may roll over money into the TSP from such accounts unless they are receiving monthly payments from their TSP accounts.
Requests for transfers are made through the My Account section at www.tsp.gov.
For TSP purposes, an “eligible rollover distribution” consists entirely of before-tax money that is distributed from a “qualified” retirement plan (see below for definition) or a conduit IRA.
Examples of eligible rollover distributions may include:
- a lump-sum distribution after terminating employment;
- an age-based in-service withdrawal;
- a final single payment after a series of monthly payments; or
- payments made to a spouse or former spouse under a qualified domestic relations order.
Death benefit payments made to spouses from qualified plans cannot be transferred into the TSP.
Check Eligibility Before Attempting TSP Transfers
A TSP participant who would like to transfer money into the TSP should check with a representative of his or her former plan or IRA to ensure that the distribution is considered an eligible rollover distribution. Before the TSP accepts a rollover into a participant’s account, the administrator of the qualified retirement plan or the trustee or custodian of the conduit IRA must certify that the distribution is an eligible rollover distribution. See Roth Balances, above, for special considerations regarding transfers of Roth balances.