By Mike Miles
December 3rd, 2012 | Uncategorized
Q. I’m pretty pleased with the Thrift Savings Plan returns and would like to know if I can deposit any after-tax money into the TSP. If I have a $100,000 in a CD, can I withdraw those funds (and pay the taxes) and deposit them into my current TSP account?
A. No, but you may transfer your 401(k) assets into your TSP account if all of the money in it is taxable upon withdrawal. Use Form TSP-60 and follow the instructions there.
December 3rd, 2012 at 3:39 pm
If you are CSRS you can put it all after-tax (up to 10% of your lifetime CSRS earnings) into the Voluntary Contribution Program earning interest. When you retire you can roll it directly into a ROTH IRA.
December 4th, 2012 at 12:18 pm
It should be noted that the CD funds could be used to purchase equivalent investments outside of the TSP. Ticker symbols for TSP investments are readily available. If the person that wrote the comment is looking to replicate the returns of TSP investments, equivalent investments can be created in an IRA or brokerage account.