Q. My spouse is retiring and has over $300,000 in his 401(k) plan. I like the fact that the Thrift Savings Plan has low expenses and would like to have him roll his 401(k) into the TSP. How would he go about this?
A. He wouldn’t. Though both the Thrift Savings Plan and a 401(k) are employer sponsored plans, the accounts within them are for the benefit of individual employees. Your spouse cannot roll his 401(k) into the TSP any more than you could roll your TSP into his 401(k).
If your spouse likes the offerings in the TSP better than the offerings he will have if he leaves his money in his prior employer’s 401(k), he can set up an Individual Retirement Arrangement (IRA) with a low cost custodian and can select investments similar to those in the TSP for that IRA.
