Since I haven't seen anyone else answer your questions:
1) TSP has 2 years to implement the new withdrawal options.
https://www.tsp.gov/PDF/formspubs/tspfs10.pdf
2) Yes, people do rollovers from TSP to Vanguard for several reasons:
- more flexibility in withdrawal options (as you mentioned)
- more flexibility in time of day trading
- more investment choices
The one advantage of TSP (low cost fees) is moot if you choose funds that perform significantly better than TSP funds. Here's a spreadsheet showing the best performing TSP fund over the last 10 years (S fund, of course) was outperformed by many Vanguards funds even when including Vanguard's fees. I put the results before/after fees in separate columns to make it easy to understand.
https://goo.gl/BskPqL
I recently retired and made the spreadsheet to convince myself that it made sense to leave TSP. Haven't done it yet - still working up my nerve. This discussion actually helps.
Don
> On Apr 9, 2018, at 12:30 PM, oldbuoy@comcast.net wrote:
> Some while ago on this forum there was talk of "liberalizing" the TSP withdrawal rules to allow for more than just a single-time lump sum separation withdrawal to make it a little more flexible. Has anything come of that? I have looked over the TSP's booklet, Withdrawing your TSP Account After Leaving Federal Service, but it still only describes that single-time withdrawal of yore.
>
> I am led to understand that others have "rolled over" portions of their TSP balances into Vanguard, Fidelity, or other privately-run 401k (?) type plans tax free if only to enjoy a bit more flexibility in their withdrawal options. Is this still the case, I wonder?
Posted by: Don Libes <don@libes.com>
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