How to Transfer TSP to a Government Job After Military Service?

I'm serving in the military and considering a government job after my service. I have a TSP account and I'm curious about the process of transferring it. How does that work, and are there any specific steps or things to watch out for?

The process of transferring your Thrift Savings Plan (TSP) from military service to a civilian government job is relatively straightforward. The good news is that as long as you're transferring to another federal job, you can keep your TSP intact.

First, when you leave the military, ensure that your TSP account is up-to-date with your personal information, such as your mailing address. This will help ensure seamless communication between you and the TSP.

Once you secure your government job, your new agency will generally set you up with a new TSP account. However, you can merge this new account with your existing one. To do this, you would call the TSP ThriftLine at 1-TSP-YOU-FRST (1-877-968-3778) and request a consolidation. During this process, be prepared to provide the account number for your new TSP account.

One thing to bear in mind is the vesting requirements for agency contributions if you're a Federal Employees Retirement System (FERS) employee. To be vested in agency contributions, you must have at least three years of federal civilian service. Your military service doesn't count toward this vesting requirement, so you'll want to stick out those initial three years to fully benefit from the match.

Lastly, ensure that you're maximizing any matching contributions from your new employer. Your agency will match your contributions up to 5%, so it's advantageous to contribute at least that much to your TSP. These matching funds are essentially free money, so capturing as much as possible can significantly bolster your retirement savings.

Remember, it's always a good idea to seek advice from a financial advisor or contact the TSP directly if you have specific questions about your individual circumstances.