Q. The beneficiaries of my TSP account are nonspousal relatives. What are their options upon my death? Have the recently enacted changes to TSP withdrawals affected any options? I was told by a TSP telephone representative that they could establish TSP beneficiary accounts, which would allow a monthly payment plan that would provide them benefits until their TSP accounts were depleted. However, I thought I had read somewhere that withdrawals of nonspousal relatives had to be completed within five years, but maybe that applies to IRAs.
Q. The TSP web site says that for 2018 the “maximum elective deferral” is $18,500. Does this refer only to the employee’s own pre-tax contributions from his/her paycheck? Or does it also include agency automatic or matching contributions? I thought agency contributions plus the “maximum elective deferral” are subject to a much higher “annual addition limit” – $55,000 for 2018. However, someone recently said that agency contributions are, indeed, included in the $18,500 limit. Can you please clarify?
Q. I have 21 years of service in a covered law enforcement position. I have been offered a job with a large government contractor. I am 53 years old. I also have purchased back eight years of military service. By reading thru your FAQs I see I can get the Social Security Supplement until I reach the age of 57. When I retire is it better to roll my TSP over into the new job’s 401(k), or leave it alone and simply start a new one with my new employer? A. It’s hard to find a 401(k) plan that compares favorably…
Q. I am 74 years old and currently have TSP funds in the amount of $140,000 in the G Fund. Should I allocate about $30,000 or so in one of the riskier funds? I would like for my TSP to grow larger but am a little apprehensive about losing money if I move it. I didn’t start investing in the TSP until the last 15 years of government service. I only take out the RMD each year.
Q. I retired from the U.S. Postal Service on March 31, 2018, at age 55 under FERS. I had approximately $18,000 in gross earned income up to that point. I contributed approximately $3,000 to my TSP up to that point also. Can I still contribute $6,500 to my IRA for the tax year 2018?
Q. The TSP L Funds are going to be more aggressive going forward and are also increasing the amount allocated to the I Fund. Does this change your recommendation to choose the L Fund closest to your life expectancy?
Q. I just retired under FERS at MRA and on an immediate retirement. As such I am curious about pending legislation that would broaden my TSP withdraw options. If I understand correctly, as written I have few choices currently: lump sum or monthly installments based on life expectancy. Neither option is appealing, as I may need more or less once I understand my financial situation in retirement. I was considering rolling over my balance to another institution so that I had more flexibility in terms of access to my savings. I hesitate because I heard that the TSP rules may…