Pros and Cons of indirect rollover. TSP account to index annuity account.

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%.

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Always do a Direct Transfer unless for some odd reason it’s not possible.
. Dude. Thanks this is what I want to
Know.
 
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