Q. I’m considering deferring retirement. Is it possible and/or advisable to roll my TSP into a self-directed 401(k)? I will need access to cash until I reach my minimum retirement age in 2018.
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 FERS employee planning to retire at age 60 in October 2017. I may use a one-time withdrawal option to withdraw some of the money (roughly 20 percent of the total ) from TSP to pay off some debt in 2017 before retiring and keep the remaining money as a pensionlike cushion (for years 2018 and 2019) until I reach age 62 and am eligible for Supplemental Security Income. Withdrawing and keeping the funds as cash in 2017 will add to my income and take me into a higher tax bracket . What options do I have to keep…
Q. I am 73 years old and a full-time government employee. I meet my annual IRA withdrawal through a non-government IRA investment. I also receive an annuity from TSP from an early retirement in 1999. I intend to fully retire in two more years. Should I keep the current annuity or roll it over into the final retirement? Also, will I have to take a mandatory retirement withdrawal annually as I now do with the non-government IRA? Is it mandatory for me to begin taking this money out? If so, what are the deadlines involved?
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Q. I retired from the U.S. Postal Service in February 2015 at age 57, with 30 years and three months of service (3 years with the military). I did not withdraw any funds from my TSP account. My plans are to withdraw all funds in April 2017 when I reach 59½ years old to pay off debts and purchase income-producing real estate. Are there any tax ramifications and any penalties I would have to pay?
Q. In hindsight, l mistakenly took out $125,000 from my TSP to invest in another product that didn’t do very well. Of that amount, $25,000 is in a Roth IRA (yes, l paid the taxes on that), and l’m feeling pretty good about leaving that alone. What I’m wondering is (1) can l redeposit the $100,000 back into the TSP having only 18 months before l retire or (2) should l take the money out of the poorly performing account and buy a deferred annuity that will tie it up for about 10 years?
Q. I am 58 year old and have 30 years in FERS. I am planning to retire soon. If I withdraw money from TSP on a monthly basis, do I pay FICA or Medicare tax?
Q. If I retire at age 60 with 20 years of service, I will be eligible for the annuity supplement along with my annuity. Can I choose to take TSP withdrawals to get me to full retirement age and then stop them until I am required to take them at 70½?
Q. I plan to retire in January 2017. At that time I will have an outstanding general loan for which I will get a distribution statement. I have been told that this will count as my one lifetime withdrawal? What happens if I make an in-service withdrawal before I retire to pay off some other debts, and still have the outstanding loan at retirement?
Q. I am 46 years old. My minimum retirement age is 57. I am covered under FERS. At what age can I start my FERS annuity without penalty? If I retire at age 55 with 33 years of service, can I access my TSP without penalty? If yes, how?