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White House praises plan to improve rollover process for TSP

In announcing its initiative to “build a 21st Century retirement system,” the Obama administration also commended an upcoming move that will make it easier for federal employees to roll over prior 401(k) savings into their Thrift Savings Plan accounts.

In announcing its initiative to “build a 21st Century retirement system,” the Obama administration also commended an upcoming effort by the Federal Retirement Thrift Investment Board to make it easier for federal employees to roll over prior 401(k) savings into their Thrift Savings Plan accounts, Government Executive reported.

A White House fact sheet announcing a broad range of changes aimed at helping Americans save for retirement noted that the TSP in June will issue a request for proposals to choose a provider to help in the process of moving savings from private-sector retirement accounts into the TSP.

Federal employees still would bear responsibility for initiating such rollovers once the new system is in place, the report noted. 

Reader comments

Fri, Jan 29, 2016 LN in DC

A long msg with only one Fed issue mentioned in the last short paragraph. 30 years ago, GAO issued a book detailing problems with 30 scattered federal retirement plans in place. Very little that was suggested there re: portability, consolidation, creditability, etc., has been done. TSP can only turn things around that are in its realm. Moving 401K to TSP is only one little aspect - what about moving NAF to TSP, DC pensions to TSP, TSP to others, etc?? Sure, there are actuarial issues - but certainly solvable.

Thu, Jan 28, 2016 Matt

This is wonderful! I just went through this process myself, and I must say it was extremely complex. TSP only allows paper checks for transfers, archaic at best, and presents a problem with 401K providers as they will usually only do paper check for amounts less than 50K. The TSP system definitely needs to be updated to allow for easier transfers.

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