Monthly Archives: May, 2014

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”,”serif”;} Q. I have approx. $270,000 in my TSP account, all in the F fund. When the AGG is up .01, I lose about $100. Why? Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”,”serif”;} A. I suspect you are either seeing the effect of lag…

Q. One of my concerns with respect to withdrawals from the TSP is the inability to choose the fund you are withdrawing from since any money you removed is taken from all current funds in the same percentage as they exist in the TSP account. Ideally I would like a few years’ buffer of expected expenses in the G fund with the bulk of my TSP in equities, so if the markets have a bad year or two I don’t have to lock in those losses and could draw strictly from the G fund until the markets recover. Will a…

Q. My father retired about 18 years ago at age 62. He was in CSRS, but he accumulated about $40,000 in TSP. He is now almost 80 and is near death and says he forgot about his TSP. I’ve been reading about TSP and how you must start making distributions at age 70 1/2. What can my mother do to recover this money? I found a form (TSP-70-A) that my dad might be able to fill out if he lasts another week or so. A. You should review the notice at https://www.tsp.gov/PDF/formspubs/tsp-775.pdf and submit form TSP-70-A on behalf of your father.…

Q. My husband and I owe back taxes to the IRS, and I would like to know if the IRS can deduct what we owe from my TSP. I have a residential and personal loan out through TSP, so I am unable to do that. We owe around $24,000 and would like it deduct from what is in my TSP. They keep telling me they can’t, but I am not sure of that. I would like to get this paid off so in around 7 years I can retire without owing them. If I was able to get them paid…

Q. Why was MetLife chosen as the entity to provide an annuity for the TSP? Are there provisions or protections for federal employees that were negotiated? I asked that question of the TSP and they stated that there was no one within TSP or MetLife that I could talk to. Finally, most forums seem to discourage annuities — they suggest that we stay in the TSP and take monthly allotments. Comment? A. The FRTIB chose MetLife, so they would be the ones to explain why. I don’t know of any special protections built into the deal. Once you buy the annuity, it’s…

Q. I’ve heard conflicting reports about TSP withdrawal and would like to get an answer about my particular situation: I have 22 years with the Bureau of Prisons, and I’m eligible to retire any time. I will be 55 years old this year, but I want to work until 2016 (mandatory retirement age of 57). Can I withdraw a portion of my TSP while I’m working to pay off some debt (which is not a hardship case) and take the penalty, and at the same time, leave the rest in the TSP until I separate from the BOP? A. No, the only…

Q. I’ve been getting mixed advice regarding my voluntary contributions options. I was planning to ask OPM to send the (post tax) VC contributions to a new Roth IRA so I can more easily track the five-year holding requirement, and send what minimal interest accrued during the brief time the account will have been open to my TSP (if OPM will transfer such a small amount) or simply let them withhold 20 percent and send me the accrued interest. However, I also have a small basis in an old traditional IRA because of a recharacterization several years ago, and now…

Q. I am FERS-covered and plan to retire in August at age 62. I am now front-loading my TSP contributions to the maximum (including the $5,500 catch-up which I have already contributed). At retirement, I plan to roll over all my TSP balance to an outside IRA account. Questions: 1) Will I be able to roll over the: a) Traditional TSP portion to a traditional IRA account? b) TSP Roth portion (which I started in 2013) to an outside established Roth IRA account? 2) Shall I now contribute the remainder (about $12,000 of $17,500) to the TSP Roth so that…

Q. I retired (at age 72) from the Department of Labor on Jan. 31. I have $368,000 in my Thrift Savings Plan invested — 40 percent G fund; 20 percent C fund; 20 percent I Fund; and 20 percent S Fund. The combined interest yield for 2013 was $85,000 (a 12 percent gain). I was thinking about drawing out $5,000 a month for 10 years and depleting the fund. If I take a monthly deductions, I computed the interest earned for a 10-year period at 10 percent. This will expand the fund each year until it is paid out in…