Q. I retired at age 62 with over $400,000 in my TSP account. I made a lump sum withdrawal in the amount of $120,000 to an annuity IRA account with Pacific Life through Edward Jones, which pays $500 for life and the account balance will never drop below the yearly gain (which holds its value at the account anniversary). The account value is now over $130,000. Upon my death the remaining funds are distributed to my beneficiaries. My Edward Jones financial advisor is suggesting that I consider transferring my TSP balance to an account with Edward Jones.
Since I made the initial lump sum withdrawal from TSP, am I able to start transferring funds to a separate traditional IRA account now or do I have to wait until I am 70 ½ to start making transfers? Do I still have the option to transfer a lump sum to a traditional IRA and maybe set up monthly transfers after that?
I want my money to still grow, but I want to have access to it if needed. Is it more financially feasible if funds are transferred to a traditional IRA through a bank or credit union or would a company like Edward Jones be more feasible since they are better equipped to personally manage your account?
A. Your remaining options for removing money from your TSP account are explained in Form TSP-70. You’ll see in the form that you have the option of taking another lump-sum partial withdrawal followed by monthly payments. It’s up to you to decide what to do with the funds once withdrawn.
