Looks like I'm going to go against what other people have said.
I'd check the fees first on the 401k, and if the options are good, leave it. If she doesn't like the options, or fees are high, I would roll the money into an IRA, not TSP. Once the money is in TSP, it is stuck there until she separates or turns 59 1/2. She can't do Roth conversions if she has an unexpected low income year (like having to take a lot of LWOP), or even expected like going part-time.
The only way I would roll it into TSP is if the 401k is awful, and she relies on doing a backdoor Roth. If she doesn't currently need to do a backdoor Roth, the IRA wins, since it can be changed in the future, where moving it to TSP can not (except as mentioned above).
An IRA will give her more flexibility, and potentially even lower fees, than TSP.
aheadlessned t1_j248j71 wrote
Reply to Girlfriend is changing jobs. Should she move her 401K into the TSP? by buskingengineer
Looks like I'm going to go against what other people have said.
I'd check the fees first on the 401k, and if the options are good, leave it. If she doesn't like the options, or fees are high, I would roll the money into an IRA, not TSP. Once the money is in TSP, it is stuck there until she separates or turns 59 1/2. She can't do Roth conversions if she has an unexpected low income year (like having to take a lot of LWOP), or even expected like going part-time.
The only way I would roll it into TSP is if the 401k is awful, and she relies on doing a backdoor Roth. If she doesn't currently need to do a backdoor Roth, the IRA wins, since it can be changed in the future, where moving it to TSP can not (except as mentioned above).
An IRA will give her more flexibility, and potentially even lower fees, than TSP.