keep old 401k or rollover into vanguard ira or into tsp?

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board keep old 401k or rollover into vanguard ira or into tsp?

This topic contains 3 replies, has 2 voices, and was last updated by  Anne 2 years, 11 months ago.

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  • #18093

    dmv

    Hi TSP investors, a question for you all–

    I have an old 401k from a former employer that is invested in a Vanguard fund.

    That employer is changing the administrator of the plan to Transamerica–I’ve read nothing good about them–but I can continue in the Vanguard fund I’m in but I will have to access it from Transamerica’s website and no longer from Vanguard.

    Help me evaluate my options.

    (1)I can do nothing and keep the Vanguard fund I’m in but lose the convenience of accessing it through the Vanguard website.

    (2) I can roll it over to a Vanguard IRA.

    (3) I can roll it into the TSP.

    I’m inclined to 2 or 3, but could someone lay out the pros and cons of each option? I’m really not sure what the best play is. I;ve read nothing positive about Transamerica, so I dislike option 1.

    #18097

    Bruin79

    Why can’t you just open up a Vanguard account if that is what is important to you in accessing it through them ?

    #18098

    Anne
    Participant

    I vote for #2. If your Van Guard account is invested in an option not available in TSP, I would roll over the account to Van Guard. You have more choices of funds in VG and you can always move to TSP later if you change your mind.

    It isn’t a bad idea to have an outside account to expand your portfolio and there are benefits when you have investments over a certain amount with some investment companies. Just make sure you are aware of any fees that you may be charged, if any.

    If investment is in same type of fund as available in TSP, either find one that is different or you might as will roll it over into current TSP as expense ratio is lowest for TSP.

    #18099

    Anne
    Participant

    For TSP: Con: Less flexibilities. Pro: Easy to transfer in. Con: Withdrawal options are limited/rule based. Pro: TSP Loan Program is great way to get money in emergency or for specific stated purposes at low interest rate. Con: Using Loan feature is counter productive to long term retirement savings.

    https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/RolloversTransfers/methods.html

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