After the first of the year, I’ll be leaving my current position at a large suburban hospital to join my local VA. I’ve been reading about the insurance plans and the thrift savings plans and it’s a little confusing with so many options (my current employer only offers one health plan).

Is there a general consensus on the best health insurance plan? I’m also wondering if I should roll over my current employers 401k into the TSP. I’ve got about 15 years or so left to work, so retirement is a ways off. Any and all advice is appreciated.

Sean

On the insurance side there is a lot of factors to consider. Best advice is to review each policy and their terms and conditions. Each one is slightly different. Determine if your medical providers accept the plans you are considering. Also, you can get supplemental vision and dental insurance.

Concur that evaluation of health plan options offered to you as a VA employee is requisite.

As for TSP, the matching funds aspect from Uncle Sam and the low administrative costs make it quite attractive.

Back in the day I was the first FERS hire at the Naval organization I joined as a civilan. TSP is an integral part of that retirement system unlike the older CSRS. It proved excellent for me and I'm at an age where IRS mandated withdrawals are in effect.

I'm in TSP at 5% matching. No complaints so far.

Welcome to the Federal Service. On the health insurance question, this handy little tool can help you select the right plan for you, if the VA offers the same thing that I get: https://www.geha.com/plans/med...are-plans-and-costs/

The plans that I've used are PPO's that are contracted out through a few providers: United Health, and Blue Cross are the names that I've seen printed on the cards.

As for retirement plans, whether you transfer your existing 401k to a TSP or start a new would depend on a few factors, such as your satisfaction with your current 401k historical rate of return when fees are taken into account, the amount of fees and expense ratios in the funds which are being held in your 401k, and if there is a penalty to transfer. When you initiate a rollover or transfer it must be completed within a certain time frame too.

As for the TSP there are a few options, there are a four funds which are based on stock market indexes, one based on Government treasuries, and a few target date funds. All of them have low expense ratios of 0.033%. Since I have a long way to go before retirement, all of my investments and future contributions are in the C fund (S&P 500). IF I had 15 years prior to retirement, I would consider re-balancing my TSP investment portfolio to a 70% in the C fund and the remaining 30% into the G fund (Government treasury bonds). Your tolerance for risk will determine how you balance it. In addition if you contribute 5% of your salary into the TSP, the Fed will also match it because of the way it works, check out: https://www.tsp.gov/PlanPartic...gencyServiceMatching

Don't forget you also get a pension too, which is "1 percent of your high-3 average salary for each year of service": https://www.opm.gov/retirement...rmation/computation/

Thanks for the advice! So far the GEHA plan is the leading contender we’ve been considering. I’m not terribly pleased with my current 401k choices, so consolidation into the TSP may be the direction I end up going. Thanks everyone!
Sean

There's no one best health plan. What's available depends on where you are. One great thing about it is you can change plans each year during open season, so, for example, if you can plan a major surgery in advance, you can choose a plan that provides the best coverage for that, then get rid of it the next year.

When I quit my part time Home Depot job after 10 years, I transferred the 401k into the TSP. Much much lower management fees (%), and adequate investment choices for the average Joe and John Bogle.

All of this above. You didn't say what your position would be, but if you are a health care provider there may be some other benefits you may receive.

In addition to health insurance (FEHB), you also have the option to buy life insurance (FEGLI). For health insurance we had Mail Handlers, it worked for us but you'll have lots of options. Dental and vision plans may be separate from whatever FEHB plan you select.

Like Bald1, I'm now retired. In a few years we can help you with questions about Medicare.

I have Blue Cross (standard) and it's been decent. I heard this year they are getting rid of the high option blue cross, not sure why. I use MetLife and VSP for dental and vision. Both have been great.

For TSP I would recommend a percent or two into a Roth. If you ever need to take out a TSP loan you can borrow against 100% of the Roth and only 50% of the traditional.

Like someone else mentioned, the TSP is considered one of three parts of a Fed retirement, the other two being social security and your pension. At my previous fed job there were a lot of old guys retiring and they told me that the TSP should be the biggest part of the three. I think most of them had between 300k-400k in their TSP at retirement. I try to do 8% traditional and 2% roth.

Look closely at the benefits of each insurance provider and pick the one that will benefit you the most for your age/health/etc.

Unless you will be a GS-12 or above, retirement in FERS is pretty lousy. You will need to take full advantage of your contribution to TSP, and the gov will match 5%.

TSP can be lucrative especially if you are stock market savvy. Years ago, you only had a couple of times a year that you could switch investment options. Now you can change it from fund to fund within a day or two if the market seems to be taking a downward turn. When the market starts to drop, you can put your savings in the “G” fund where it is safe from loss. Although it is a very low yield, it is untouchable.

Thanks everyone for your replies and advice.
Sean

I would never roll over a 401K from one employer to another. Employer's always are more restrictive on options than the open market. Move it to an IRA at Fidelity/Vanguard/etc. and be happier and better off.

quote:

Originally posted by Sevo1967:
I’m also wondering if I should roll over my current employers 401k into the TSP.

IMO, you should do a "rollover" to an IRA with the 401(k) funds. There are many investment choices for that money, and YOU get to decide how to invest the money. With the TSP you are limited to the funds the program offers.

Also, the TSP is also available as either a "traditional" account, or "Roth" account. You can put your contributions in either type of account, or split your contributions among both options. You should know, whichever type of account you use for your contributions the "matching" funds contributed by the government must go into a "traditional" account, not a "Roth."

I am with the VA for 5 years now. Can't comment on the health insurance aspect as we have our entire medical, dental and vision under my wife's plan. I rolled over my 401K into out TSP. Maximum matching is 6%. You can of course contribute more than that (I do). I am putting 15%. If I remember correctly, you have to wait 3 years to get 100% fully vested on the TSP.

You have option to join the union or not. I did. Deduction is around $20 every paycheck.

If I may make a suggestion, sign up for the AFLAC insurance (critical care). I wish I did. That would have helped me pay for my surgery when I was diagnosed with Thyroid Cancer few months ago. I just signed up with Start Date January 2019. Hopefully I don't get hit with a different cancer in the future.

Not sure which VA you will be joining. Here in Vegas, vacation request and work schedule is prioritized by seniority. You will meet some good folks. But I have to warn you. You will also meet some folks that are entitled.

My wife is retired fed.gov. She has had GEHA her whole life and I'm covered under her plan. It has great benefits and, in our opinion, can't be beat. It's currently administer by United Health Care.

My wife participated in the TSP with a low contribution for about 20 years, it forced her to save. It's paying for our daughter's college (in state).

quote:

Originally posted by ador:

I am with the VA for 5 years now. Can't comment on the health insurance aspect as we have our entire medical, dental and vision under my wife's plan. ...

Do some research as you get older. On retirement, you can keep your health care plan for the same price as long as you've been in the plan five consecutive years. You wife's plan may be better and/or cheaper now, but look ahead.

quote:

Originally posted by ador:
Maximum matching is 6%.

No, matching is on the first 5%.

https://www.tsp.gov/PlanPartic...OfContributions.html
"As a FERS or BRS participant, you receive matching contributions on the first 5% of pay that you contribute each pay period. As the table below shows, the first 3% of pay that you contribute will be matched dollar-for-dollar; the next 2% will be matched at 50 cents on the dollar. Contributions above 5% of your pay will not be matched."

quote:

You can of course contribute more than that (I do). I am putting 15%.

You may put more than 5% into TSP, however you need to be careful when simply applying percentages, as you are limited by an annual limit of $19000 (or $25000 if you qualify for "catch up" contributions).
https://www.tsp.gov/PlanPartic...tributionLimits.html

So you need to be sure the percentage you choose makes your annual total at, or below the annual cap. ($19000 or $25000).

If you can contribute the maximum, the best way to do that is divide the max contribution by the 26 annual pay periods, and designate that dollar amount as your contribution for each pay period, rather than use a percentage. So it would either be $730 (19000/26), or, if you're eligible for "catch up" contributions, $961 (25000/26).

If you exceed the annual limit before the last pay period, you will miss out on matching funds for those pay periods. because choosing too high a percentage (or dollar amount contribution), will mean you make no contributions in the pay periods after you meet the annual cap, and therefore the agency has nothing to "match."

https://www.tsp.gov/PlanningTo...veContributions.html
"If you reach the IRS elective deferral limit before the end of the year, your contributions and Agency or Service Matching Contributions must stop for the remainder of the year. As a result, you will lose some of your Agency or Service Matching Contributions."

DMF, that is an excellent explanation you provided there. Very informative and helpful, especially to the OP. I was mistaken about the 6% matching. I am not worried about my 15% going over the annual limit. The 15% of my annual income is way less than those numbers.

quote:

Originally posted by DMF:

quote:

Originally posted by ador:
Maximum matching is 6%.

No, matching is on the first 5%.

https://www.tsp.gov/PlanPartic...OfContributions.html
"As a FERS or BRS participant, you receive matching contributions on the first 5% of pay that you contribute each pay period. As the table below shows, the first 3% of pay that you contribute will be matched dollar-for-dollar; the next 2% will be matched at 50 cents on the dollar. Contributions above 5% of your pay will not be matched."

Correct me if I'm wrong, but I believe the way it works out is that they contribute a max of 5% with your 6% contribution. So you do need to contribute 6% to get the full match.