401(k) & TSP Rollover in Florida

Direct rollover vs indirect rollover (and why it matters)

A direct rollover moves money straight from your 401(k) or TSP to an IRA without touching your hands — the check is made payable to the receiving custodian, not to you. Zero tax withheld, zero risk of missing the 60-day window. This is the only rollover method we recommend.

An indirect rollover, by contrast, sends the check to you, withholds 20% for federal taxes, and gives you 60 days to deposit the full original amount (including the 20% withheld, which you have to come up with from other money) into an IRA. Miss the 60 days or fall short on the deposit, and the IRS treats it as a taxable distribution plus a 10% penalty if you're under 59½. We have never seen an indirect rollover go better than a direct one.

• Always request a direct rollover (also called trustee-to-trustee transfer).
• Never let the check be made payable to you personally.
• Confirm the receiving IRA custodian's exact mailing instructions before you call your old plan.
• Verify the deposit hits your IRA within 5–10 business days of the request.

Why ACM specializes in TSP rollovers for federal employees

John G. Ziesing is an FRC-certified Federal Retirement Consultant — meaning we specialize in the Thrift Savings Plan and the unique rules around FERS and CSRS retirement. The TSP is one of the lowest-cost retirement plans in the country, but it has a thin investment menu and no income-rider option. Most federal retirees benefit from rolling at least a portion of TSP to an IRA where guaranteed lifetime income is available.

We coordinate the rollover with FERS Special Retirement Supplement timing, the FERS basic annuity, and Social Security claiming so the moving pieces don't collide. Federal retirees moving to Florida from DC, Maryland, or Virginia gain an additional Florida-residency tax benefit on every future IRA withdrawal.

What to do with the money once it's in the IRA

Once the rollover lands in an IRA, you have full control over the investment menu. Most Florida retirees use the rollover to add three things their old plan didn't offer: guaranteed-lifetime-income annuities, principal-protected MYGAs in lieu of bond funds, and tactically-managed equity exposure for the growth sleeve.

We don't push a single product. We model your full retirement-income plan first — Social Security, pensions, RMDs, expenses — and only then recommend the IRA allocation that closes your specific income gap.