Monthly Archives: October, 2012

Q. If I agree to make Substantially Equal Periodic Payments available under Internal Revenue Service code section 72(t) from my TSP, may I do so before I retire and avoid the 10 percent penalty? If it matters, I am a federal law enforcement officer who will have 25 years of service before age 50. A. No, since you’re not allowed to initiate monthly payments before you retire. The 72(t)-compliant distributions will avoid the early withdrawal penalty whenever they are initiated, however.

Q. My husband and I are both federal employees. My husband is 30 and has 10½ years. He contributes to the G Fund and, from what I can tell from our leave and earnings statement, it is 5 percent. I am 28 and have three years. I also have a 5 percent contribution to G Fund per our LES. What fund do you recommend we contribute to? We would like to start now to ensure we have a decent retirement. Do you recommend us investing in the new Roth? A. You should contribute as much as you can afford to…