TSP Intelligence
Should you rollover your TSP? Probably not.
The honest math your brokerage rep won't show you. No email, no phone call, no "free consultation" upsell.
No email required
Nothing saved to any server
Built by veterans
Decision Tree
Why are you considering a rollover?
Your reason
Verdict
Not sure yet? That means don't move.
The default answer is: leave your TSP alone. It's the lowest-cost retirement account available to any American. If you don't have a specific, compelling reason to move — inertia is your friend. You can always rollover later when you have a clear reason. You can never roll back into TSP once you leave.
The reasoning
→TSP is the cheapest retirement account in the country. Full stop.
→You can always rollover later — you can never reverse it
→If no one can articulate why you SHOULD move, don't move
→The burden of proof is on the rollover, not on staying put
The G Fund Advantage
The fund you can't get anywhere else.
G Fund (TSP)
$2,375
annual at 4.75%
Principal Risk
ZERO
vs
Civilian Treasury
$2,125
annual at 4.25%
Principal Risk
MARK-TO-MARKET
G Fund earns $250 more per year with zero principal risk. No civilian equivalent exists.
The Fee Reality
Fees compound. Against you.
TSP (Current)
Expense ratio: 0.043%
Annual Fee
$22
30-Year Compounded Cost
$2,186
Advisor (1% AUM)
Expense ratio: 1.000%
Annual Fee
$500
30-Year Compounded Cost
$50,832
An advisor charging 1% costs you $48,646 more than TSP over 30 years. That's not advice — that's a toll road.
Roth vs Traditional
The rollover within your TSP matters too.
Traditional TSP
$40,000
The rule: Traditional money is taxed when you withdraw it in retirement. If you rollover to a Traditional IRA, the money stays tax-deferred — no tax event.
The trap
Rolling Traditional TSP into a Traditional IRA triggers the pro-rata rule. This kills your ability to do Backdoor Roth conversions. Keep Traditional money in TSP if you might earn over the Roth income limit.
Roth TSP
$10,000
The rule: Roth money grows tax-free and withdrawals are tax-free in retirement. Rolling to a Roth IRA preserves this — and removes TSP's required minimum distribution rules.
The move
Roth TSP → Roth IRA is the one rollover that almost always makes sense. You get more fund options, no RMDs, and the same tax-free treatment. Do this one.
Backdoor Roth Trap
If you earn over $161K (single) or $240K (married), read this.
The Backdoor Roth IRA lets high earners contribute to Roth despite income limits. But it only works if you have zero dollars in any Traditional IRA. If you rollover your $40,000 Traditional TSP into a Traditional IRA, every Backdoor Roth conversion becomes partially taxable (the pro-rata rule). Keep Traditional money in TSP — it doesn't count.
BRS Lump Sum
Ready to talk to a lender who gets it?
When you're ready, we'll connect you with VA lenders vetted by the Boots and Bearings community.
Sponsor Placement
Partner lender logos and referral links will appear here.
Boots and Bearings does not originate loans. Any lender partnerships are clearly disclosed. Calculations are estimates and do not constitute financial advice. Always verify rates and fees with your lender's official Loan Estimate.