Q. Will I be able to open a TSP Roth account and then roll my current Janus Roth IRA balance into it? How about after retirement? I have waited patiently for the promising TSP Roth, but it has been delayed time and again. Now it’s set for rollout in the second quarter of 2012. How nice: I’m planning to retire by the end of April, meaning that I may be ineligible for the TSP Roth if it is not offered by then. If the TSP Roth begins in May, June, or afterwards, am I out of luck? Since I plan…
Monthly Archives: January, 2012
Q. I will be retiring from the the Postal Service with 31 years of FERS at the age of 56. I know I will be eligible for the Social Security supplement until I reach the age of 62. My question is about earning limits with the supplement. If at age 56, I withdraw all or a portion of my TSP account, will this affect my Social Security supplement from the Postal Service? A. TSP withdrawals are not counted as earned income.
Q. I am a Federal Employees Retirement System employee and a reservist. I have a uniformed service Thrift Savings Plan account and would like to use some of the money to buy in to my FERS annuity. Does the FERS annuity qualify as a tax-deferred retirement plan, or will I have to pay taxes on the money? A. You’ll have to pay taxes on the money.
Q. Now that I have retired and am over the age of 59½, can I have monthly annuities coming to me for life? How? A. Yes. You may use your Thrift Savings Plan money to purchase a life annuity from their provider, MetLife, or any other insurance company you choose (by rolling over the money to an Individual Retirement Account). Visit www.tsp.gov and search for “annuity” or call the ThriftLine at 877-968-3778.
Q. At age 56, I would have 30 years and five months of service and could retire. I am currently 51 and have 25 years and seven months of service. If I left the federal government to go into a different field of work today, can I continue to add to my TSP account? A. You may not contribute directly to your TSP account after you are separated from federal service, but you may contribute to another retirement plan and then transfer that balance into your TSP account later.
Q. I am an FAA air traffic controller with 27 years of service. I was wondering about the age 55 rule for a one-time withdrawal of TSP funds without penalty. If I retire at age 53, can I take out a lump sum when I turn 55, or do I have to work and retire the year I turn 55 to do this? If so, how much money can be taken out without penalty. I also was wondering if I worked till mandatory retirement age, and get forced out, can I still get the one time lump-sum withdrawal without penalty…
Q. I’m a federal law enforcement officer and I’ll be retiring in March after 25½ years of creditable service. I intend to take my Thrift Savings Plan funds when I retire and receive monthly payments based on my life expectancy. I understand this life expectancy option and an annuity are the only ways I can eliminate the IRS 10 percent penalty for early withdrawal since I’ll be 53 when I retire. The TSP manual (on page 16) states I have a one-time opportunity to switch from the life expectancy payments to specific dollar amount payments. I called the TSP representative…
Q. I am planning on retiring from the Federal Employees Retirement System in five years at my minimum retirement age. I consider myself a long-term buy-and-hold investor and have accumulated the following assets from regular investing at opportunistic times over 25 years: TSP ($250K) + max annual contributions in C fund, USAA Strategic Advisor Fund ($100K) and International Fund ($150K), First Command Roth IRA Destiny Fund ($150K), CDs and Money Market ($250K), Gold Fund ($50K). Is there any advice you could give me to shift my assets to best protect my investments for that five-year mark? I feel I am pretty…