IRA Transfer into Civil Service Thrift Savings Plan
I recently retired from Federal Civil Service and want to transfer an IRA (non-Roth) into my federal Thrift Savings Plan (TSP). TSP sent me a form (TSP-60) to request the transfer from the Mass Mutual IRA. I am required to sign the form and forward it to Mass Mutual for them to fill out the IRA custodian section and send funds to the TSP.
I spoke to Mass Mutual and they said I needed to fill out a form from them for surrender of the IRA to TSP. The form I received from them says I have to have a “letter of acceptance” from the “recieving company” (TSP) must be included with the form. I may be wrong, but I doubt that the TSP will furnish such a letter. What should I do?
Thanks
Permalink Submitted by Alan Spross on Sat, 2008-02-02 04:29
It appears their procedures conflict somewhat with TSP procedures, with require you to complete Form TSP 60, certify certain conditions regarding your IRA, and have the form signed by the IRA custodian. This authorizes a direct rollover to the TSP.
Perhaps Mass Mutual will consider completion of the TSP form evidence enough that TSP will accept the transfer. It could well be that since many employer plans refuse transfers from IRA accounts, Mass Mutual has had to bear the expense of transferring funds out and then accepting them back. In any event, try to get them to accept the TSP 60 before you try to get a letter from the TSP that may be difficult to obtain.