Voluntary contribution program


Q. I am planning to retire sometime in 2016 with more than 40 years of service. I have been reading about the voluntary contribution program and have opened a VCP account with OPM. I am currently waiting to get a determination of how much I can contribute to the program. My plan is to contribute to the program and then roll over the contributions to a Roth IRA. Can I immediately roll over the entire amount deposited into the VCP to a Roth IRA? I am 60 years old, so the 59 ½ year age-withdrawal restriction would not apply, but would I have to have the money in the Roth IRA for five years before being able to withdraw without penalty?

A. The age and account history requirements do not apply to rollovers.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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