Q. How long do you have to wait after retirement to make a withdrawal from TSP? A. There is no waiting period.
Author Mike Miles
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. Is it true that after retirement you cannot move your money around within the different TSP funds? A. After retirement, you may continue to manage your TSP account assets, including reallocating your money among the various funds, as you did before retirement.
Q. I am an avid follower of the Federal Times Q & A section and would like some clarification on a statement I often see. When people write in asking for any type of TSP investment advice, the answer is that there is no “one-size-fits-all” answer, which I could not agree with more. However, when it comes to leaving funds in the TSP, rollovers, etc., the answer is always that the TSP is the best investment vehicle available. In my opinion, this is another situation where there’s no “one size fits all” and would like to understand why there is…
Q. Probably know the answer to this but will ask anyway. Can you transfer a spouse’s 401 K or IRA into your TSP? N. No.
Q. I sent an e-mail about two months ago asking a question about my TSP account. I’ve been working as a General Schedule employee for about 4½ years. I have all my money invested in one fund (the I Fund). I don’t want to work much longer and was wondering if it would be best if I divided it into three different funds. The S Fund, the I Fund and the C Fund. I checked and didn’t see a question along this line. Your advice in this matter would be greatly appreciated. Thanks. A: I did provide an answer to…
Q. I don’t think I was clear on my submitted question. I am not old enough to retire but may have to leave my job. I don’t need the money because I can live on my husband’s income. Should I leave my TSP account alone until I become of retirement age, or am I required to take it out or roll it over ? A. You may, and should consider, leaving your money in the TSP and managing it there until you need it or until you have to start withdrawing it sometime after you reach age 70 1/2. The…
Q. My husband is doing a permanent change of station soon and I haven’t yet found federal employment at his new duty station, so I will more than likely resign before leaving. What are my options with my TSP account? I don’t have three full years yet of federal employment. A. If your vested balance is less than $200, your account will automatically be cashed out and a check sent to you, which you may roll over to an IRA. If your vested balance is at least $200, then you may (and I recommend that you do consider) leave your…
Q. How much public debt (Treasury Bills) does the Thrift Savings Plan have in it’s investment portfolio? A. I’m not sure I understand the question. What portfolio? If you’re referring to the total amount of TSP money invested by participants in Treasury Bills, I have no idea, nor do I care to spend the time to find out. If you mean your own TSP account, I’d estimate the amount to be somewhere between 10 percent and 20 percent of your F Fund holdings.
Q. How often must a TSP password be changed? I cannot find the answer on the TSP site. A. This is not a financial planning or retirement question and it should be posed directly to the TSP.
Q. I am a federal worker, 51 years of age and am considering a withdrawal from my TSP account to pay off my substantial consolidated college student loans. If I pursue this plan what will be the tax ramifications or any other penalties? Another option for me is to take a loan out from my TSP account to pay the loans off and then begin to make payments back to the account. Is interest charged on these type of loans? Are penalties involved or any type of tax implications? If I do not pay all the “loan” back before retirement,…