When you leave military or civilian government service you have the opportunity to rollover your TSP into an IRA/Roth IRA with a financial professional. Should you leave your money in the TSP system or move it? This article can help you decide.

1. When you leave military or civlian government service you have the opportunity to rollover your TSP into an IRA/Roth IRA with a
financial professional. Should you leave your money in the TSP system or move it?
WHAT DO I DO WITH MY THRIFT SAVINGS PLAN (TSP)
WHEN I SEPARATE?
Leave it where it is.
Pros
Cost: The TSP is a low cost system. If you believe you are the best person to manage your investments and your strategy is to keep
costs as low as possible, then you may prefer to keep your money in the TSP.
Cons
Lack of diversification: The TSP has three equity funds (C, S, and I), two fixed income funds (F and G), and the Lifecycle Funds, which
consist of combinations of the aforementioned five funds. Numerous market segments are not represented in the TSP system.
Lack of guidance: Advice on investing within your account and other aspects of financial planning—e.g. retirement, insurance, estate
planning, saving for college, and tax reduction—is limited if you remain in the TSP. The TSP website offers a phone help line but no
access to a personal financial professional.
Potential tax-exempt contributions in a tax-deferred account: See the “Example TSP Statement” included with this document. As
you can see from the example statement, this individual has $127,239.47 in tax-exempt contributions in his traditional (tax-deferred)
account. These tax-exempt contributions are not in his Roth account, which has a $0.00 balance. If he leaves these tax-exempt
contributions in the TSP, any future growth on the $127,239.47 will be taxed as it is withdrawn from his account. If he were to rollover
the tax-exempt contributions to a Roth IRA, then all future growth would be tax-free. For example, if the $127,239.47 grows to
$200,000 and it is still in the TSP, then $72,760.53 ($200,000-$127,239.47=$72,760.53) would be taxed when withdrawn; if this
same money were in a Roth IRA, then it would all be withdrawn tax-free. Internal Roth conversion, i.e. moving tax-exempt
contributions from the traditional to the Roth account inside the TSP, is currently not allowed.
Rollover into an IRA/Roth IRA with a financial professional.
Pros
Diversification: As an independent advisor at Riverside Securities I have access to a wide variety of investment products including
stocks, bonds, mutual funds, ETF’s, annuities, and more. I can customize your portfolio to your time horizon and risk tolerance.
Comprehensive Financial Planning: Investors have consistently cited a financial professional’s willingness to take the time to
understand their needs and goals, look at their entire financial picture, and explain analysis clearly as the most important qualities
they are looking for in an advice provider. I provide asset management and comprehensive financial planning.
Cons
Cost: Good advice costs money. There are some products I use that have no additional cost, e.g. insurance, but I cannot guarantee
there will be no added cost to working with me. What I can guarantee is that I will clearly identify any additional costs and
demonstrate the added value of a financial professional.
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JAMES GROH, MBA, FINANCIAL PROFESSIONAL
jgroh@riversidesecurities.com | 210-970-5871
8620 N. New Braunfels Ave., Suite 102 | San Antonio,TX 78217
www.riversidesecurities.com/san-antonio-branch/james-groh
Securities and investment advisory services are provided through NEXT Financial Group, Inc.
Riverside Securities is not an affiliate of NEXT Financial Group, Inc. Neither NEXT Financial Group, Inc. nor its Representatives give tax advice.
Interested in Insurance, Investments, or Financial Planning? Call or Email Me for a Complimentary Analysis of Your Specific Situation.

2. EXAMPLE TSP STATEMENT
Securities and investment advisory services are provided through NEXT Financial Group, Inc.
Riverside Securities is not an affiliate of NEXT Financial Group, Inc. Neither NEXT Financial Group, Inc. nor its Representatives give tax advice.

3. The illustration is hypothetical and is not intended to be a projection of future values of any product.To qualify for the tax-free and
penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after
age 59 ½ or due to death, disability, or a first-time home purchase ($10,000 lifetime maximum). Depending on state law, Roth IRA
distributions may be subject to state taxes.
Rolling over an employer sponsored plan into an IRA is not suitable for everyone.Tax implications, additional fees, and loan options
may indicate an employer sponsored plan is more appropriate for some investors. Please consider all available options prior to
making a decision.
Diversification does not guarantee a profit or protect against market losses. It is a method used to help manage investment risk.
Securities and investment advisory services are provided through NEXT Financial Group, Inc. Riverside Securities is not an affiliate of
NEXT Financial Group, Inc. Neither NEXT Financial Group, Inc. nor its Representatives give tax or legal advice.
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Securities and investment advisory services are provided through NEXT Financial Group, Inc.
Riverside Securities is not an affiliate of NEXT Financial Group, Inc. Neither NEXT Financial Group, Inc. nor its Representatives give tax advice.