Q. I plan on retiring with 31 years of service at age 57. I have both the Regular TSP and the Roth TSP. I plan to withdraw my Thrift Savings Plan in a single payment. Can I transfer 100 percent of the Regular TSP to a Traditional IRA, but take the Roth TSP funds as a direct withdrawal without penalty? A. I believe so, as long as you have held the Roth account for at least five years. You should consult a tax adviser for specific advice before you proceed.
Yearly Archives: 2014
Q. I am 62 and a FERS employee. Can I retire with my FERS annuity and TSP and wait until my full retirement age of 66? I do not plan to work after I leave. A. Yes.
Q. If a VERA/VSIP is offered next year, will I be able to draw income from TSP without penalty? I will have 33 years of creditable service, and as of March 9 I will be 54.
Q. I know you are not a CPA but I thought this has probably been asked before and that you might have an answer. Are annuity fees tax-deductible on traditional IRAs?
Q. I am 56 and had to retire under a federal service disability retirement because of cancer. I am also receiving Social Security, and I have 90 percent disability from the Veterans Affairs Department. Can I withdraw from the Thrift Savings Plan without the 10 percent penalty, or do I need to wait until I’m 59? I’ve read that if I am permanently disabled I can waive the penalty. But I can’t find any info as to how I prove permanent disability for tax purposes. I know I can’t work and retired with disability under federal service and Social Security, but is that permanently…
Q. I retired seven years ago from the military and contributed to a TSP account up to my retirement. I am currently 52 years old and would like to know if I can withdraw money out of my TSP account to pay for one of my children’s college loans without a penalty?
Q. I will be retiring Dec 2014 and want to withdraw my entire TSP monies. What is the federal withholding in percentage that will be taxed? And do they take it off the top of your balance or will it happen at income tax time?
If you had just enough money to pay your electric bill next month, would you gamble with it just for fun? Hold it in cash, and you’ll enjoy another month of electrified living. Lose even part of it, and you’ll be living in the dark for a while. If the sole purpose for that money is to pay for the electricity you’ll need to live the life you want, why would you risk losing it to have a chance to win money you don’t need? Many investors don’t understand the principles and techniques necessary to manage a retirement investment portfolio…
Q. Is there a penalty for taking a lump sum TSP balance out at retirement for FERS employee to purchase a home? I may retire at age 56 or 57 with 30 years of federal service. If I decide to take my lump sum at retirement, will I be penalized? How much would come out if the amount is $170,000 right now?
Q. Please provide me with information on how to file a formal complaint concerning TSP processing of a 401(k) rollover from a previous employer. TSP personnel stated there is no formal procedure for complaints, and participants need to contact U.S. Representatives. Is this correct?