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TSP Intelligence

Should you roll over your TSP? Usually, leaving it is the low-cost default.

The honest math your brokerage rep won't show you. No email, no phone call, no "free consultation" upsell.

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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. If you don't have a specific, compelling reason to move — inertia is your friend. You can always roll over later when you have a clear reason. If you withdraw or roll out your entire balance, your TSP account closes and you generally can't reopen it unless you return to federal service. Keep a balance if you want the option to roll money back in later.
The reasoning
→If you withdraw or roll out your entire balance, your TSP account closes and you generally can't reopen it unless you return to federal service. Keep a balance if you want the option to roll money back in later.
→If no one can articulate why you SHOULD move, don't move
→The burden of proof is on the rollover, not on staying put

Educational estimate, not financial advice.

Leaving service

Sources: TSP — Expenses and Fees (as of 2025 net expense ratios); IRS Notice 2025-67 / IR-2025-103 (as of tax year 2026); Thrift Savings Plan (tsp.gov) (as of rule as stated in the 2026-09-16 audit (CONTENT-017)); TSP plan news — Roth in-plan conversions coming to the TSP in January 2026 (as of January 2026)

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 yields 0.50 percentage points more than the civilian Treasury rate you entered — about $250 a year on your balance, with zero principal risk. No civilian equivalent exists.

Educational estimate, not financial advice.

The Fee Reality

Fees compound. Against you.

TSP (Current)
Expense ratio: 0.035%
Annual Fee
$18
30-Year Compounded Cost
$3,717
Advisor (1% AUM)
Expense ratio: 1.000%
Annual Fee
$500
30-Year Compounded Cost
$93,438
An advisor charging 1% costs you $89,721 more than TSP over 30 years. That's not advice — that's a toll road.

Educational estimate, not financial advice.

TSP contribution limits (as of 2026)

Elective deferral limit
$24,500
Catch-up, age 50+
$8,000
Catch-up, ages 60–63
$11,250

Source: IRS IR-2025-111 — 401(k) limit increases to $24,500 for 2026 (as of 2026)

Sources: TSP — Expenses and Fees (as of 2025 net expense ratios); Fund issuers' published expense ratios (Schwab SWTSX fact page; Fidelity ZERO) (as of expense ratios as checked in the 2026-09-16 audit); IRS IR-2025-111 — 401(k) limit increases to $24,500 for 2026 (as of 2026)

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 roll over 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.

Educational estimate, not financial advice.

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.
The move
Rolling Roth TSP into a Roth IRA can make sense, but check the Roth IRA five-year rule first: if this is your first Roth IRA, the five-year clock starts when you open it. Roth TSP no longer has required minimum distributions, and the TSP now offers in-plan Roth conversions.

Educational estimate, not financial advice.

Backdoor Roth Trap
If you earn over $168K (single) or $252K (married) in 2026, 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 roll over 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.

Educational estimate, not financial advice.

Sources: IRS Notice 2025-67 / IR-2025-103 (as of tax year 2026)

BRS Lump Sum

Sources: DASD(MPP) BRS Lump Sum Discount Rate memo (as of CY2026)

Sources and assumptions

Sources & limits

Educational estimate, not financial, legal or medical advice. Verify your balances and fund performance against your account at tsp.gov.