Apr 26, 2023 Thread starter #21 T Tim Lumbao Expert 29 scagnt83 said: To actually dumb it down. If you do a rollover with your TSP, which means cashing it out to your bank account.... then "rolling" it into an IRA. The TSP provider will withhold 20% for taxes. If you do a Direct Transfer to an IRA, meaning it never touches your bank account, it goes directly from the TSP custodian to the new IRA custodian. They dont withhold 20%. --- Always do a Direct Transfer unless for some odd reason it's not possible. Click to expand... . Dude. Thanks this is what I want to Know.
scagnt83 said: To actually dumb it down. If you do a rollover with your TSP, which means cashing it out to your bank account.... then "rolling" it into an IRA. The TSP provider will withhold 20% for taxes. If you do a Direct Transfer to an IRA, meaning it never touches your bank account, it goes directly from the TSP custodian to the new IRA custodian. They dont withhold 20%. --- Always do a Direct Transfer unless for some odd reason it's not possible. Click to expand... . Dude. Thanks this is what I want to Know.
