Q. I thought the G Fund was supposed to be stable and even though you would not gain much, you should not lose money. I received my TSP statement and it says I lost $3,000 in 2016. So if I lost that much, I really lost more because of what I put in and the agency matches. That’s a lot of money. Did someone at TSP make an error? Does that sound correct that I could have lost money in it?
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. I retired last April 2016 as a FERS U.S. Postal Service employee with 32 years at 56 (my minimum retirement age) years old with the special retirement supplement. Am I subject to the Social Security earnings limit of $16,920 in 2017 until age 62? I will not be working through full retirement age (66) for Social Security purposes. Will my Social Security benefit become less than what it is projected to be now since I am not putting money into Social Security? If a start monthly TSP payments, should I elect fewer than or more than 10 years? I realize there is…
Q. My current TSP allocation is 75 percent in L2020 and 25 percent in L2030, with my biweekly payroll contributions split 50-50 between the two. I can’t remember when I opened the L2020, but when I realized 2020 was coming much sooner, I opened up the L2030 so my TSP account would continue to earn money once the L2020 flips to the L Income fund. I’m in my early 50s, so I’m really not sure when I’m going to retire. Should I keep going like this, or move everything to L2030?
Q. I will be 58 in May. I have a massive credit card bill that is causing me huge amounts of stress, and it is costing me $100 per month in interest. No, I wasn’t frivolous in my spending, I have a disabled daughter who I have been helping out in addition to her two service dogs. Can I take money out to pay off the credit card even though I currently have an outstanding TSP loan? Or can I cancel my loan and use that $300 per month to add to my credit card debt? If I could do…
Q. The information in the TSP site under the fund comparison matrix for the S Fund says the objective of the fund is to match the performance of the Dow Jones industrial average’s Total Stock Market U.S. Completion Index. So of course I would think when the Dow goes up, the S Fund would go up, yes?
Q. Why did the Dow Jones industrial average recently go up but the S Fund went down? The C Fund went up same as the Standard & Poor’s 500 index.
Q. Can I put all my Roth TSP in the C Fund and my regular TSP in the F Fund? This would be in preparation for transferring it all to (regular and Roth) IRAs.
Q. I am a 73-year-old Air Force retiree and TSP account participant. When I had to comply with the IRS’ required minimum distributions requirement at 70½ years of age, I also had regular certificate of deposits of a savings nature (pretaxed) in different facilities such as savings and loans. I elected to consolidate all of my savings for ease of record-keeping and accidentally renamed my CDs as IRA accounts when they matured for a greater percentage of return. Last year I learned that I could contribute again into my TSP account even though I was not working, so I rolled over all of…
Q. I am a FERS employee who will reach 70½ in November 2017. I have not separated from federal service and do not intend to do so for a couple of years. Will I have to make catch-up required minimum distributions for the years I worked past 70½. For example, if I retired at age 73, would I be required to consolidate and withdraw three RMDs the year after I retire to make up for the previously deferred RMDs?
Q. I am a senior Foreign Service officer and will have 26½ years of service under my belt at the end of my current tour in summer 2018. In the Foreign Service, we are eligible for voluntary retirement if we are at least 50 years of age (I will be 54 by summer 2018) and have 20 years of service. I am considering retiring in the fall of 2018, so just before the year in which I turn 55. My question concerns the TSP. Assuming I retire in the fall of 2018, will I be able to make monthly withdrawals…