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Information for SP Participants, Custodiansof raditional IRAs, and Administratorsof Eligible Employer Plans
Te Trit Savings Plan (SP) can accept transers (or rollovers) o eligible distributions rom any eligible retirement plan, including a traditional IRA and an eligible employer plan (or its designatedfnancial institution).Only SP participants who have open accounts can transer money into the SP. Tis includesparticipants who are separated rom Federal civilian service or the uniormed serv ices. However, aseparated participant who is receiving monthly payments rom his or her SP account cannot trans-er money into it.
Participants cannot
open
a SP account by transferring funds to the SP.
Te SP
is a retirement savings and investment plan or Federal employees and members o theuniormed services. Congress established the SP in the Federal Employees’ Retirement System Acto 1986. Te Floyd D. Spence National Deense Authorization Act or Fiscal Year 2001 (Public Law 106-398) extended participation to members o the uniormed services. Te SP is to be treated as atrust described in 26 U.S.C. § 401(a) which is exempt rom taxation under 26 U.S.C. § 501(a). SPregulations are published in title 5 o the Code o Federal Regulations, Parts 1600 -1690, and areperiodically supplemented and amended in the Federal Register.
Trift Savings Plan
July 2008
Form SP-U-60Request for a ransferInto the SP
Form TSP-U-60 (7/2008)PREVIOUS EDITIONS OBSOLETE
- 2 -
General InormatIon or PartIcIPants
and
elIGIble emPloyer Plan admInIstrators or custodIans
Wh iii wi h tsP p?
The TSP will accept distributions rom any eligible retirement plan,as dened in Internal Revenue Code (I.R.C.) § 402(c)(8)(B). Aneligible retirement plan includes a traditional IRA and an eligibleemployer plan as dened below. To be accepted by the TSP, dis-tributions must meet dierent requirements depending on whetherthey are rom a traditional IRA or an eligible employer plan. Beoresubmitting this orm, a TSP participant who would like to transeror roll over money into the TSP rom a traditional IRA or an eligibleemployer plan should check with a representative o his or her IRAor plan to determine what portion o a distribution (i any) meetsthe applicable requirements, as described below.
n:
Participants are required to certiy (in Section III o this orm)that the distribution they are seeking to transer or roll over to theTSP meets the applicable requirements. I you cannot sign the cer-tication, the TSP cannot accept your transer or rollover.
tii Ira.
This is an individual retirement account describedin I.R.C. § 408(a) or an individual retirement annuity described inI.R.C. § 408(b). It does not include a Roth IRA, a SIMPLE IRA, ora Coverdell Education Savings Account (ormerly known as aneducation IRA); distributions rom these types o IRAs will not beaccepted by the TSP.The TSP will accept all or a portion o a distribution rom a tradi-tional IRA
xp
a distribution that:
• is a minimum distribution required by I.R.C. § 401(a)(9); or• consists of after-tax balances (i.e., money that has alreadybeen subjected to Federal income tax).
eigi ep P.
This is a plan qualied under I.R.C.
§ 401(a) (including a § 401(k) plan, prot-sharing plan, dened
benet plan, stock bonus plan, and money purchase plan); an
I.R.C. § 403(a) annuity plan; an I.R.C. § 403(b) tax-sheltered annu
-ity; or an eligible I.R.C. § 457(b) plan maintained by a governmen-tal employer. In order to be transerred or rolled over into the TSP,the distribution rom an eligible employer plan must be an “eligiblerollover distribution.”An eligible rollover distribution is a distribution to a participant ina plan o all or a portion o his or her account. However, it
be:
• one of a series of substantially equal periodic payments madeover the life expectancy of the employee (or the joint lives of the
employee and designated beneciary, i applicable), or or a
period of 10 years or more;• a minimum distribution required by I.R.C. § 401(a)(9);• a hardship distribution;• a plan loan that is deemed to be a taxable distribution because
o deault; or
• a return of excess elective deferrals.Examples of eligible rollover distributions include: a lump sum
distribution ater terminating employment; an age-based in-serv-ice withdrawal; a nal single payment ater a series o monthlypayments; death benets made to a spouse; or payments madeto a spouse or ormer spouse pursuant to a qualied domesticrelations order (QDRO). For Federal civilian employees, an eligiblerollover distribution may also include some retirement benets ad-
ministered by the Ofce of Personnel Management (for example,the taxable portion of the Alternative Form of Annuity (AFA) or in
-terest on lump sum retirement credits).All o the money transerred into the TSP must be money thatwould have been included in the participant’s gross income or
the tax year in which the transfer was made, had the money been
distributed without being transerred or rolled over. In other words,the TSP will
accept transfers or rollovers of after-tax balances
(i.e., money that has already been subjected to Federal income
tax). The TSP also will not accept tax-exempt balances (i.e., mon
-
ey that is never subject to Federal income tax) from a uniformed
services TSP account into a civilian TSP account.
Wh i h i w “” “v”?
A
(also known as a “direct rollover”) occurs when theparticipant instructs a traditional IRA or eligible employer plan tosend all or part o his or her eligible distribution directly to the TSPinstead o issuing it to him or her.A
v
occurs when the traditional IRA or eligible employerplan makes a distribution to the participant (ater withholding the
applicable Federal income tax) and the participant deposits all or
any part o the gross amount o the distribution into the TSP within60 days o receiving it.The check must be made payable to the Thrit Savings Plan; theparticipant’s name and TSP account number or Social Securitynumber must either appear on the check or accompany thecheck.
Hw h piip v i h tsP?
A participant can transer or roll over into the TSP all or any part oa distribution that meets the applicable requirements (described
above) and that does not include after-tax or tax-exempt bal
-ances. I the distribution is made to the participant, an IRA may
withhold taxes; an eligible employer plan must withhold taxes
beore making the distribution. The participant can roll over theentire amount o the distribution, including any amount that was
withheld for taxes, by making up with personal funds the amount
that was withheld.
n:
Any portion o the distribution that the participant chooses
not to transfer or roll over will be taxed as ordinary income in the
year it is received. In addition, i the participant is younger than
59 ½ at the time of distribution, he or she may have to pay a 10%early withdrawal penalty tax on the amount that was not trans
-erred or rolled over.There is no limit to the number o transers or rollovers into the TSP
that a participant can make. For example, if you were a partici
-pant in two dierent private-sector qualied retirement plans, youcan transer or roll over money rom both plans into the TSP.
Hw h iv ii ?
Money that is transerred or rolled over into the TSP is not applied
to the annual elective deferral limit ($15,500 in 2008) that is im
-posed on regular employee contributions.
Wh hpp h i h h tsP?
Money that is transerred or rolled over to the TSP is allocated tothe TSP unds according to the participant’s most current contri-bution allocation on le. Once the unds are posted to the partici-pant’s TSP account, they are treated like employee contributionsand will be subject to the same plan rules as all other employeebalances in the account. These rules may be dierent rom the
rules of the IRA or plan. For example, the money will be available
or loans or in-service withdrawals. Any uture transactions a par-ticipant makes will apply to the entire account balance, includingthe money that has been transerred. The money will be subject tocourt orders against the TSP account, and spousal rights rules willapply to all loans and withdrawals rom the account.
n:
Because the TSP accepts only unds that have never been
taxed, funds transferred into the TSP will be subject to taxation
when they are eventually distributed to the participant. Thereore,you must make sure you are asking the TSP to accept only unds
that have not already been taxed.
Form TSP-U-60 (7/2008)PREVIOUS EDITIONS OBSOLETE
IV.certIIcatIonby tradItIonalIra or elIGIbleemPloyer PlanadmInIstrator
tHrIt saVInGs Plan tsP-u-60
REQUEST FOR A TRAnSFER InTO THE TSP
I.InormatIonabout you
Use this orm to request a transer or to complete a rollover rom an eligible retirement plan into your uniormed services Thrit Savings Plan(TSP) account. To transer unds into the TSP,
hv p tsP
and you cannot be receiving monthly payments romit. A check (showing the participant’s name and TSP account number or Social Security number)
h
p hi
.
Otherwise,unds received by the TSP will not be invested until a properly completed Form TSP-U-60 has been received.
o p tsP ,
they are allocated according to the most current contribution allocation on le.
Giv hi i wih v pg h ( i) ii Ira h ii igi p p.Wig:
Any intentional alse statement in this request or willul misrepresentation concerning it is a violation o law that is punishable by a
ne or imprisonment for as long as 5 years, or both (18 U.S.C. §1001).
II.InormatIonabout yourunds
Date Signed
1.
Name
2.
3.
/ /
4.
( ) –
5.
Address
6.
City
7. 8.
Street address or box number
Last First MiddleDate o Birth
(mm/dd/yyyy)
State/CountryZip CodeTSP Account Number
9.
This is a: Transer Rollover
10.
Amount being submitted $_____________
11.
I this is a rollover, the date you received the distribution / /
12.
This distribution is rom my:Eligible Employer Plan Traditional IRA
Date SignedName o InstitutionAddressDaytime Phone
(Area Code and Number)
Participant’s Signaturemm dd yyyy
(See Section II instructions onback of form.)
III.yourcertIIcatIon
I, _____________________________________________, certiy to the best o my knowledge that the distribution I amtranserring or rolling over to the TSP meets the requirements or a distribution rom a traditional IRA or an eligibleemployer plan (whichever is applicable) that are described on page 2 o this orm.I urther certiy that I have read this orm in its entirety and that the inormation I have provided is true and com-plete to the best o my knowledge.
13.
14.
Contact Phone Number
This section
be completed by the trustee (or custodian) o the traditional IRA or by the administrator o theeligible employer plan rom which the distribution is being (or was) distributed.
d i hi i p i i i i h pppi i i pvi.
The participant’s TSP ac-count number or Social Security number
be included on the check.
*
15.
Gross amount o distribution (see back o orm) $________________I certiy that the unds are being or have been distributed rom an eligible retirement plan as dened in I.R.C.§ 402(c)(8)(B).
16.17. 18.
19.
20.
( ) –
21.
*
n:
I you are prohibited rom providing the participant’s TSP account number or Social Security number onthe check, you must enclose a document containing this inormation with the check.
(For complete denitions, see General Inormation on page 2.
n:
I
this is a
i v
,
check “Transer.”)
Typed or printed name o Financial Institution Representative or Plan AdministratorSignature o Financial Institution Representative or Plan Administrator
of 00
tsp-u-60
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| Upload Date: | 11/22/2009 |
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