Belgarath Posted April 28, 2020 Posted April 28, 2020 If a plan allows rollovers from "401(a)" plans, does this include a governmental TSP? I know TSP distributions CAN be rolled to IRA's, qualified plans, etc., but does a TSP specifically need to be listed under the plan types that can be rolled in, or is that covered under the umbrella of 401(a)? P.S. - it seemed to me that it does constitute a "qualified trust" under 401(a) - also see paragraph (5)(G) of 401(a) which specifically exempts governmental plans from paragraphs (3) and (4). It just isn't entirely clear to me, so I thought I'd check to see who else might have considered this issue.
Larry Starr Posted April 29, 2020 Posted April 29, 2020 On 4/28/2020 at 10:58 AM, Belgarath said: If a plan allows rollovers from "401(a)" plans, does this include a governmental TSP? I know TSP distributions CAN be rolled to IRA's, qualified plans, etc., but does a TSP specifically need to be listed under the plan types that can be rolled in, or is that covered under the umbrella of 401(a)? P.S. - it seemed to me that it does constitute a "qualified trust" under 401(a) - also see paragraph (5)(G) of 401(a) which specifically exempts governmental plans from paragraphs (3) and (4). It just isn't entirely clear to me, so I thought I'd check to see who else might have considered this issue. I've not seen language ever that restricts rollovers as to where they can come from. But this is probably what you are looking for: IRC § 7701(j) states that the TSP is to be treated as a trust described in § 401(a) which is exempt from taxation under § 501(a). Here's the code: (j)Tax treatment of Federal Thrift Savings Fund (1)In general. For purposes of this title— (A) the Thrift Savings Fund shall be treated as a trust described in section 401(a) which is exempt from taxation under section 501(a); (B) any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as contributions to or distributions from such a trust; and (C) subject to section 401(k)(4)(B) and any dollar limitation on the application of section 402(e)(3), contributions to the Thrift Savings Fund shall not be treated as distributed or made available to an employee or Member nor as a contribution made to the Fund by an employee or Member merely because the employee or Member has, under the provisions of subchapter III of chapter 84 of title 5, United States Code, and section 8351 of such title 5, an election whether the contribution will be made to the Thrift Savings Fund or received by the employee or Member in cash. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
Logan401 Posted October 21, 2020 Posted October 21, 2020 Question: Can a Thrift plan be merged into a 401(k) Plan?
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