Q. TSP declares an unpaid loan at retirement as a taxable distribution. Participant is over 70 1/2. Does that taxable distribution satisfy the minimum distribution in the first year of retirement? Any research information is appreciated.
Yearly Archives: 2014
Q. I am thinking about taking a partial withdrawal of my TSP and moving it into an IRA account. My question is, the fees that are incurred when the IRA manager buys and sells positions within the IRA, how are they accounted for? For example, I move $100,000 to a simple IRA managed by my broker. He invests the $100,000 but in doing so his fee is, say $1,000, where does the $1,000 come from? For that matter, what about any future rebalancing within the IRA?
Q. DOB 8/24/43, retired , reach 70 1/2 in 2014, I believe that distributions need to begin in 2015, year following year of a 70 1/2 attainment. Is that correct? Distributions will be done automatically, if I do nothing, am I correct?
Q. Can the employee’s contributions and their associated gains fund balance within an already established traditional TSP account be converted to a Roth TSP account, meaning one could pay the taxes due and convert a specified amount from a traditional TSP account to a Roth TSP account?
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’ve been retired for several years and have been taking the good advice you’ve been suggesting in your “Ask the Experts” articles. Since I know very little about how to invest, I’ve put all my TSP savings in the L-2030 fund. Since I don’t need to withdraw any money at the present time, I plan on leaving the money there until it’s time for the RMD in…
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Q. When I first opened my TSP savings account back in the late 1990s, no one ever briefed me that there would be a specific retirement age attached to my account. I will be retiring in a year. I will have a total of 28 years of active federal military service. I will be 48 years of age at retirement. Will I have to pay a penalty to withdraw all of my money from the TSP? If I have to pay a penalty, what is it?
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Q. What is the minimum age I can begin taking withdrawals from my TSP account? And what is the tax/penalty I will incur? I intend to retire from Department of The Air Force with MRA +10 (15 years civil service). A. While you are employed, you may take a TSP loan or a financial hardship withdrawal at any age, or an age-based withdrawal after you reach age 59 1/2. Once you separate from service, you may withdraw your TSP money at any age, although the 10 percent early withdrawal penalty may apply if you don’t meet one of the exceptions…