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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28284
Experience:  Taxes, Immigration, Labor Relations
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I have an both a traditional & simple IRA (less than two

Customer Question

I have an both a traditional & simple IRA (less than two years). Will I incur penalties if I transfer accounts to federal government, Thrift Saving Plan (TSP)?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Hi and welcome to our site!
Thrift Saving Plan (TSP) is a retirement savings and investment plan for federal employees - and it is classified under section 457(b)
You may rollover funds from traditional IRA to Governmental 457(b) plan without any taxable event.
However such rollover is not allowed from Roth IRA account.
See following rollover chart for your reference
http://www.irs.gov/pub/irs-tege/rollover_chart.pdf
So if you take the money out of your Roth IRA account - that woudl be treated as distribution.
Let me know if you need any help with reporting either transaction.