Author Mike Miles

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.

Q. I am looking for a clear answer in regard to TSP home loans. I am considering retirement in the next year. I am eligible to retire today. If I utilize a TSP home loan now for my primary residence (and planned retirement residence) and retire before the loan is paid in full, will I be hit with a penalty? Can I utilize a one-time payout at time of retirement to pay the loan in full without incurring a penalty?

Q. I tried to locate the letter or column that discussed how to manage F Funds in this low-interest environment. If I recall, you mentioned it was probably a good idea to keep somewhere between 30 percent to 70 percent of what one would normally keep in the F Fund in the G Fund in the current interest rate environment. I recall you mentioned something about 3 percent of something as being a point at which you would consider moving those funds back to the F Fund? Could you provide this information again?

Q. I will be retiring at age 57. I will be taking monthly payments from TSP at that time. I understand after monthly payments are started, the only other option left is a full withdraw. If I take monthly payments until age 59½, can I then roll over the balance into an IRA? Flexibility in withdraw choices is my goal. Is rolling over into an IRA still considered a full withdraw, and is this possible?

Q. I am 68 and plan to retire in two years from a civilian position with a district attorney’s office. I have a traditional IRA in a Vanguard account, which consists of both non-deductible and deductible contributions. I no longer contribute, and the IRS Form 8606 reflects a $99,000 non-deductible basis. I would like to move that portion to my Vanguard Roth IRA and direct transfer the remaining portion to my TSP account, mainly to take advantage of the G Fund. If I move the $99,000 to my Vanguard Roth IRA first and then request Vanguard move the rest to TSP, will…

Q. In 2016, I contributed $17,900 to my TSP and an additional $6,000 to my catch-up TSP. I had intended to contribute $18,000 to my primary TSP and $6,000 to my catch-up to max out my TSP, but I miscalculated. Will TSP/Employee Benefit Information System automatically transfer $100 from my catch-up contributions to meet the $18,000 requirement before catch-up contributions are made? Or do I have a tax problem to face?

Q. I plan to retire next year and am considering the transfer of my entire TSP into a tax-deferred IRA. Once I leave federal service, I will not be able to contribute to my TSP account any longer. If I make the transfer of my TSP into a tax-deferred IRA, can I still make contributions to the new IRA and reduce my taxable income in retirement? Or for tax purposes, would it be better for me to leave my TSP where it is and just withdraw an annuity directly from it?

Q. What fund diversification strategy percentages would you recommend for low-risk tolerance that also lets me earn more through my TSP account? I am a 29-year-old U.S. Postal Service employee with almost two years of service. I currently have $10,200 in my TSP with all of it invested in the G Fund.

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