Q. I want to take a lump-sum partial payment at retirement and leave the remainder in my Thrift Savings Plan for the future. When I decide to start taking disbursements from my TSP, can I take them as partial monthly payments and adjust the monthly amounts on an annual basis? A. Yes, you may. However, monthly payments are considered a method of full, rather than partial, withdrawal.
Monthly Archives: February, 2012
Q. I reached my 70th birthday in November. When must I start taking payments from my account? A. If you are separated from federal service, you must take your first required minimum distribution by April 1, 2013. If you’re still a federal employee, you can wait until after you leave service.
Q. I am going through a divorce. My husband works for the federal government. If and when the account is split, can I take out partially or totally, the money in my account? If so, what percentage in taxes will I be required to pay? A. I suggest you review the material in the booklet at https://www.tsp.gov/PDF/formspubs/tspbk11.pdf.
Q. I reached age 70½ in 2011, therefore must make my initial required minimum distribution from my Thrift Savings Plan account before April 1. Which table should I use to determine my RMD? My spouse is my only beneficiary and is more than 10 years younger than me; so, it seemed to me that the appropriate table is the Joint and Last Survivor Table. However, two different TSP customer service representatives have informed me that I must use the Uniform Lifetime Table, and that only those who have established annuities within their accounts (which I have not done) are permitted…
Q. I retired at the end of 2011 as a Federal Employees Retirement System employee. To get most of my retirement, I needed to redeposit for several years of military service, and also for a period of prior federal service. Because I did not have the money to pay it at the time, nor did I want to remain working until I could amass that amount, I withdrew my Thrift Savings Plan at age 59½ and paid most of the money to the Office of Personnel Management. The amount it withheld for taxes was in excess of the amount I…
Q: I am considering leaving the federal government and have been contributing to TSP. Can I withdraw my contributions? A: Yes. You are free to withdraw your TSP assets after you retire. You may also be eligible to take withdrawals while you are still employed. Visit www.tsp.gov for the details.
Q: I am 47 and recently retired from active duty because of a 100-percent disability. In a nutshell, my financial sitrep: Roth IRA $60K; Uniformed service TSP $38K; debt $450K (house $400K, Credit Card $29K, Cars $21K), retirement and disability income is $6K per month; one spouse; no children. I am considering rolling the Roth IRA into the TSP and taking a partial withdrawal of $50K to pay off credit card and car loans. We’ve cut back but make little headway against the credit card. I am expected to live another 20-30 years but am unemployable per the Veterans Affairs…
Q. I am currently deployed and trying to read up on the upcoming Thrift Savings Plan Roth Individual Retirement Account. Will I be able to do an interfund transfer of my existing balance, as well as my contribution allocation, in the TSP from my other funds into the Roth IRA TSP? If so, will I be able to do so online, as I can with the other allocations/balances? A. We’ll find out exactly how the program works when the details are announced.
Q. Last year, I took out $3,000 from my 401(k) and paid my 20 percent penalty. This year, I went to do my taxes and expected to pay the additional 10 percent penalty of $300. I do my taxes on freetaxusa.com, and my refund was supposed to be $1,800 after I entered my W-2. But as soon as I entered my $3,000 distribution, it knocked it down to $1,300. I have no other factors involved as far as why I would be charged more than the initial $300 I expected. Do you think there is something wrong and they are…
Q. I am a 57-year-old retiree. I retired two years ago. Our daughter is getting married, and I would like to help her with $15,000 for the wedding coming up later this year. We have just over $100,000 in our Thrift Savings Plan account. We know we can only make a one-time withdrawal before we’re 59½ years of age without a penalty. So if we make a one-time partial withdrawal this year, we will not be able to make another withdrawal without penalty charges until after we are 59½. Would it be wiser to take out a $15,000 loan or make a partial TSP…