Monthly Archives: December, 2010

Q. The TSP withdrawal form# TSP-70 under the heading “Transfers” states: Transfer Option. If, in Item 23, you choose to withdraw any portion of your account as a single payment or monthly payments for a fixed dollar amount that results in payments that are expected to be completed in less than 120 months, you may be able to transfer all or any portion of the payment(s) to a traditional IRA, eligible employer plan, or Roth IRA Is there any reason you know of why we would not be able to make SEPP transfers from our existing TSP accounts into a…

Q. I am currently 60 1/2 years old. I want to start receiving Social Security benefits at 62 years of age. How does the current Debt Commission plan change effect my plans? A. It won’t until and unless it becomes law, which, at this point is not likely. As again after something passes, or at least seems likely to pass.

Q. My mom received a pension that she had turned into an annuity through Metlife. She did it this way because she did not want to worry about being taxed or paying taxes. The problem is, she is having a difficult time communicating with Metlife. She has called and called, and they claim they sent out her paperwork when in fact they haven’t. What other routes can she take to expedite this because she is so fed up she wants to take all of her money out. Is there anybody we can contact besides Metlife? A  She might try contacting…

Q. I was hired this month as a GS under FERS.  I believe that I would like to buy back my military time (9.5 years with the Air Force) for retirement.  I spoke with someone yesterday who told me that I could use 401(k) / IRA monies to do this buyback.  Is this true? Where can I find the rules regarding the buy back? A. You can only use these funds for the buyback if you withdraw them from the retirement plan account first.

Q. If I am 55 when I retire, I cannot access my traditional IRA without penalty until I reach 59 1/2.  If I transfer the IRA into TSP, does that restriction no longer apply?  In other words, can I transfer my IRA to TSP, retire at age 55, and withdraw the mingled funds from TSP without penalty? A. Yes, and in other words, yes

Q. I will retire at 55 years old on the CSRS retirement in September 2011 with 34 years of service. I don’t need an annuity from my TSP, rather I just want to take money out ad hoc for vacations, etc. I understand you can make a one-time withdrawal of $1,000 or more, but I want to maybe withdraw $2,500 in 2011, then $2,000 in 2012, etc.  I don’t want a set monthly withdrawal, but use it like a checking account. Is this possible?  I’ve been searching and can’t seem to find this scenario. A. The TSP does not permit…

Q. When the TSP Roth option is implemented, will we be able to transfer outside Roth accounts into the TSP?  If this will be possible, wouldn’t it make sense to at least move a very small amount from the regular TSP into the TSP Roth to get the opportunity to transfer outside accounts into the TSP Roth? A. We’ll see the rules when the plan is rolled out. If it’s allowed, I’d be in favor of rolling post-tax outside balances into a TSP Roth account.

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