You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.
We’ve never heard of someone having such a hassle when it comes to the Thrift Savings Plan. At this point, you may realize the form you need is the TSP-70 for government civilians. Or if you’ve contributed to the TSP via your military service, use the TSP-U-70. It sounds like you’re trying to transfer directly from the TSP to a traditional Individual Retirement Account (IRA) or a new employer’s retirement plan. This makes sense because it will allow you to avoid any income taxes and allow your money to earn interest and grow over time. A direct transfer is best – from the TSP to your new plan or the IRA. On the other hand, if the TSP sends you a check directly, they are required to withhold 20 percent for federal income taxes. This can cause problems because even if you subsequently add the money to an IRA as a rollover contribution, you’ll have to come up with the 20 percent that was withheld or that money will be subject to taxes and a 10 percent penalty if this happens before age 59 ½.
Our advice would be to call the folks at TSP, let them know what you’re trying to do, and ask them to help you out. It could be that you just need to add a cover letter to your next request, indicating that it supersedes all previous requests. No matter how you do it, remember: keep the money in a tax-deferred account such as an IRA to continue that retirement savings momentum!