Q. I am a federal employee (FERS employee from January 1988 to the present) who will likely be leaving federal employment for a private sector position in a different city. What happens to TSP? I can either leave my money in the TSP account or roll it over; in any case, I am not touching the balance until I retire. A. You may, and probably should, maintain your TSP for life. Later, when you leave private sector employment, you may, and probably should, move your retirement plan balance(s) to the TSP account and manage it there.

Q. I read the article related to the management fee charged by mutual fund brokers. Is this fee charged annually or monthly? (www.federaltimes.com/article/20140310/MGMT01/303100003/The-TSP-hard-beat) I have been investing in Fidelity in a traditional IRA account for a number of years, but lately I have had to pay taxes on the contributions because my household income has been above the threshold required to get the tax deduction. I was wondering if I could move some of the contributed funds from fidelity straight to the TSP Roth without having to pay taxes again or incur any penalties and still continue saving with Fidelity.…

Q. I am 26 years old and have been investing into TSP (Roth) for about seven months. I am currently investing at just above 10 percent of base pay. I was investing into G Fund at 100 percent and recently moved to the L Fund 2040 at 100 percent. I have zero experience with investing and took this advice from a friend’s parent who has experience. Was this the right move? A. Based only on your age, which is the only relevant clue you’ve provided, I think that the L 2050 Fund would have been a better choice. The person…

Q. Can I take a partial lump-sum and then start a full withdrawal as monthly payments? A. Yes.

Q. I turn 70 ½ in April. Must I take the required RMD by April 1? Do I take it all at once or can I spread it out over the year? Must I take a certain amount from all accounts or can I take it all from one? A. Your first RMD is due by April 1 of the year following the calendar year in which you reach age 70 ½. You may take the RMD any way you like, as long as the required amount has been withdrawn by the deadline. Your TSP RMD must come from your TSP account.…

Q. I’m a federal law enforcement agent that has been contributing about $1,500 per month, which includes the matching contribution. For the last few years I have been investing 100 percent into the S fund, and this year I have been investing 20 percent in the F fund, 30 percent in the C fund and 50 percent in the S fund. I have been a federal employee since 2009 and I have asked a number of agents at my work throughout the years if purchasing shares that are less inexpensive such as in the L 2050 will provide me with a…

Q. I’m a CSRS person retiring at 64. I’ve read a couple of the comments and the TSP Web. As I understand I can: request a single partial withdraw, leaving the balance for future withdrawals; or I can request a monthly check varying the amount as needs dictate. My question is: Can I start taking a monthly amount for, say, 2 years and then request my one-time partial withdrawal (for a large cost item), and stay with the current monthly amount? I would adjust my monthly payments downward at the next open period. A. You may not request a partial lump-sum withdrawal…

Q. I am a 56-year-old considering early retirement, no disabilities. Example: If I withdraw $60,000 from TSP, I would have nearly $20,000 taken for taxes and 10 percent  penalty, but if I withdrew at the end of the pay year, will the additional $40,000 that I receive count towards my “High 3” for Social Security payment calculation? Or if I grossed $70,000 in earnings that year, and took the $40,000 from TSP after penalties and tax, would my income for that year be $70,000 earnings plus $40,000 TSP withdraw = $110,000 for that year’s income? A. TSP distributions are not…

Much attention is focused on constructing cost- and risk-efficient investment portfolios. The Thrift Savings Plan does an excellent job of supporting this effort by offering only ultra-low cost index funds, and preconfigured asset allocation models, in the form of the L Funds, that are carefully engineered to provide the maximum expected rate of return for varying levels of investment risk. In fact, it offers everything you need to build a superior portfolio — one that can be expected to outperform anything else out there. A cost- and risk-efficient portfolio is essential to any plan that seeks to maximize the lifetime…

Q. I plan on retiring under MRA+ 10, at age 59, with 16 years service in December. I also plan on starting monthly withdrawals from my TSP account as soon as possible after retiring, which I heard is 6 weeks.  If I do that and need a one-time lump sum in a year or two, is that possible? I’ve never taken any before and never had any loans either. A. I may not take a partial withdrawal after you have started monthly withdrawals. You may not take a loan after you have retired. Once monthly payments start, they may only…