Keep it Growing: Leveraging IRA, TSP and 401(k) Opportunities

Whether you have retired, changed jobs or are at least age 59 ½ and still working, you have an opportunity to give your retirement plan an upgrade. Review your current accounts and consider taking greater advantage of Individual Retirement Accounts (IRAs), the Thrift Savings Plan (TSP) and 401(k) programs.

As a reminder:

• An IRA allows you to save money for retirement in a tax-advantaged way.
• A 401(k) is an employer-sponsored retirement savings plan that lets you save and invest a piece of your pre-tax paycheck.
• The TSP is a retirement savings and investment plan that offers federal employees the same type of savings and tax benefits that many employees of private corporations receive under 401(k) plans.

A Rollover IRA can provide the following opportunities:

1. Consolidate Your Accounts: If you have multiple retirement accounts or IRAs, consolidating your assets into one account could make them easier to track and monitor.
2. More Investment Options: One of the primary disadvantages to the TSP and most 401(k)s is the lack of investment options. With an IRA you have many more opportunities available.
3. More Withdrawal Options: A Rollover IRA provides much more flexibility on how and when you can access your money, giving you more control over your investments.
4. Professional Guidance: You can work with professional financial advisors who can help you design an investment strategy that is right for your situation. We can improve your ability to reach your retirement goals.

Are you age 59 ½ or older? If so, the Thrift Savings Plan and most 401(k)s allow employees to take “In-Service” distributions. An In-Service distribution allows a current employee over the age of 59 ½ to rollover up to 100% of the current retirement plan balance into an IRA with no tax consequences. You can also continue to make contributions to your TSP or 401(k) account as you have been accustomed to doing while you continue to work.

That’s just one example of the many ways to keep your retirement investment growing by leveraging the opportunities in IRAs, the TSP and 401(k)s. Cinfed’s Financial Planning Department in partnership with Saxon Financial Services is available to assist you and your family with these topics and any other financial planning concerns you may have.