Question

Do any special instructions apply to direct rollovers from a Thrift Savings Plan (TSP) account?

1. Yes
2. No

Answer 1

Yes, there are special instructions that apply to direct rollovers from a Thrift Savings Plan (TSP) account. When completing a direct rollover, the TSP will issue a check made payable to the new IRA custodian, rather than the individual. This prevents any tax liabilities or penalties. Direct rollovers must be completed within 60 days of receiving the distribution from the TSP account.

Step-by-step explanation:

Yes, there are special instructions that apply to direct rollovers from a Thrift Savings Plan (TSP) account.

When completing a direct rollover, the TSP will issue a check made payable to the new IRA custodian, rather than the individual. This prevents any tax liabilities or penalties.

Additionally, it is important to note that direct rollovers must be completed within 60 days of receiving the distribution from the TSP account.