Since you're ready to get organized, here is a "No-Mistakes" Checklist. Use this when you’re on the phone with a TSP representative or your IRA custodian to ensure the money moves safely from point A to point B without the IRS taking a cut.
The "Direct Rollover" Master Checklist
Phase 1: Preparation (Before You Call)
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[ ] Locate Account Numbers: Have both your TSP account number and your destination IRA account number ready.
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[ ] Verify Account Type: Confirm the "flavor" of the money. (e.g., Traditional TSP must go to a Traditional IRA; Roth TSP must go to a Roth IRA).
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[ ] Check the "RMD" Status: If you are age 73+, calculate your Required Minimum Distribution first. You must take that distribution before you can roll over the remaining balance.
Phase 2: Communicating with the Institutions
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[ ] Use the "Magic Words": Explicitly state, "I want to perform a Direct, Trustee-to-Trustee Rollover." (This prevents them from accidentally cutting a check in your name).
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[ ] The "Payable To" Instruction: If they must mail a physical check, ensure it is made out to the institution, not you.
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Example: "XYZ Brokerage, FBO [Your Name], Account #12345." (FBO stands for "For Benefit Of").
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[ ] Confirm Tax Withholding: For a direct rollover, the federal tax withholding should be 0%. If they mention a 20% withholding, stop the process—they are likely processing an indirect rollover by mistake.
Phase 3: The TSP Specifics
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[ ] Online Portal vs. Paper: Most TSP rollovers are now initiated through the TSP "My Account" portal. Check there first to see if you can generate the transfer electronically.
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[ ] For Moving Money INTO the TSP: You will likely need Form TSP-60 (for Traditional) or Form TSP-60-R (for Roth). Your IRA custodian will need to sign a portion of this.
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[ ] For Moving Money OUT of the TSP: Ensure your IRA custodian provides you with their "Transfer/Rollover In" instructions, including the specific mailing address for rollover checks.
Phase 4: Follow-Up
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[ ] The 10-Day Check: If the money hasn't landed in 10 business days, start making calls.
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[ ] Tax Form Verification: In January of next year, look for Form 1099-R from the sending institution.
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Check Box 7: It should show Code G (Direct rollover to a qualified plan). If it doesn't, you'll need to contact them for a correction.
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Pro-Tip: If you’re moving a large sum, ask the receiving institution if they have a "Rollover Specialist" who can jump on a three-way call with the TSP. It’s their job to make sure the money arrives safely!