Thrift Savings Plan
My husband is a retired 75 year old Postmaster. He has a Thrift plan that he is now taking yearly deductions from. Is there any way we can move the Thrift into a CD and what would be the tax consequences? What would be our best options? Thank you in advance.
Terry Says
I don’t believe you can do a rollover from the TSP and keep your tax-deferred status. BUT, you can move the money INSIDE your plan to the “G” fund — It is a government securities money-market type account that would provide the same safety as you are presumably seeking in a CD.
Remember, you pay ordinary income taxes on all withdrawals. So you don’t want to take it all out now — just to get safety. But if you don’t want exposure to the stock market in retirement, just move your money INSIDE the plan from your other funds to the G fund.
