Q: I have seen numerous questions about the feasibility of rolling 401(k) contributions into an existing TSP account. All of your answers indicate it is a good idea to do so. How do I go about accomplishing said transfers? A: You must contact your 401(k) administrator and make arrangements for rollover distribution. At the same time, you must complete a Form TSP-60 and submit it to the administrator along with your distribution request. Ultimately, the completed Form TSP-60 and the distribution check must reach to the TSP for the transfer/rollover to be completed, and one section of the Form TSP-60…
Yearly Archives: 2011
Q: I have $110,000 in my TSP account. I took out $40,000 for a home loan, and I still owe $25,000 on it. I want to retire in April 2012 at age 56. How will the unpaid loan be handled? How much will come out of the $110,000 I have in the account? A: The unpaid loan balance, including interest, will be declared a taxable distribution from your account.
Q: I just saw a short article in your blog (12/29/10) that contains a reference to Congress getting its hands not only on TSP funds, but private-sector retirement accounts as well. I have seen articles already that discussed lawmakers raiding the TSP, but this is the first reference I have seen to them stealing non-government retirement accounts. However, there is little detail given. Can you provide more information on this issue, i.e., what is the source, status, etc.? A: I’m not a political reporter, and don’t spend much time tracking proposals of this kind. I have read a few stories…
Q: Where isTSP’s Required Minimum Distribution reported on the Form 1040 Income Tax Return? A: Form 1040, Line 16.