Q. I am in the middle of a divorce after 30 years, and my husband’s attorney has requested my TSP statement and a document verifying the benefit and a current plan summary and description of my FERS account. Is my husband entitled to both of my pension benefits and my FERS account?
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 am a current employee with U.S. Customs and Border Protection (under the purview of the Department of Homeland Security) with 13 years of service. I am considering transitioning to a part-time (20 hours) position with the Department of Veterans Affairs. Will I still be able to contribute to TSP? Can I contribute the maximum? Are there matching funds when you work part time? How will my part-time service reduce my retirement calculation? I am trying to gain more work-life balance and want to understand the financial ramifications before I make any decisions.
Q. I have been considering moving TSP money into the G Fund to have it exempt from New Jersey state income tax. My search for an answer leaves me with confusing information regarding exemption from state tax which talks about “direct” obligations and qualified mutual funds which invest in federal obligations and bonds. To summarize: Since savings bonds, etc. are exempt from state tax, and the G Fund is made up entirely of federal obligations, couldn’t that fund be exempt?
Q. How do I file a complaint against TSP for not releasing my funds to me? I joined in August, then submitted my cancellation for return of funds on Nov. 22, 2016, to meet the Nov. 23 deadline. Then TSP mailed a letter saying my form failed to include my TSP account number, so it was not processed. I re-faxed it. TSP now says that because they did not receive the revised form until Dec. 16, it will not return my funds. Clearly, TSP had notice of my withdraw before Nov. 23.
Q. I’ve been a GS employee going on six years, and I currently invest 20 percent of pay into TSP. I had been putting my funds into the L Fund 2020 (70 percent) and G Fund (30 percent), and just changed to the L fund 2040 (85 percent), C Fund (10 percent) and G Fund (5 percent). Is this a good way to invest my funds or should I place all of it in the L Fund 2040? I only have just over $24,000 in my TSP account. I’m 49 years old and probably plan to work at least another 15 years.
Q. I am currently investing in the TSP L Fund 2020 but still have money I previously invested sitting in C, F and G funds. Should I be transferring the individual funds into my current L Fund 2020 where I am now allocating 100 percent of my funds?
Q. I received a check for my retirement from American Funds, and they had taken out federal income tax, so I received the net check. The check was dated Dec. 30, 2016, but I just received this check Jan. 12, 2017. My husband and I still file taxes, and I am 69½ years old. Do I have to show the net check on our 2016 income tax returns or do I show this on our 2017 taxes?
Q. You often express the virtues of the TSP, such as simplicity and low fees, but you also cite that the TSP offers eligible investors (i.e., federal employees, retirees and survivors) the unique G Fund. Besides being composed of “special-issue” Treasury bonds, can you elaborate on why the G Fund is a unique and valuable tool for managing ones portfolio and how one can best use the G Fund?
Q. If I took a withdrawal at 59½, retired at 60 and started taking monthly withdrawals at 61, can I take a partial lump sum after retirement from TSP?
Q. I’m retired, and for 2017, I increased the amount I’m taking out in monthly TSP withdrawals. I received a letter today from TSP acknowledging my payment had increased, the correct amount and the number of months these payments are expected to last. The letter went on to say if my payments are expected to last less than 120 months, they’re considered eligible rollover distributions, not periodic payment for tax purposes. I really don’t know what this means, but somehow I suspect it means I’ll pay more in taxes. Can you shed light on this?