Q. I am recently divorced, and my former spouse was awarded a portion of my TSP account. What needs to be done to start the process?
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. Recently, legislation known as the Defending Public Safety Employees’ Retirement Act was passed, which would amend the tax law to allow special category employees to withdraw money from TSP accounts prior to age 59½ without incurring the 10 percent IRS tax penalty. I am a military technician with 33 years of service. I know military technicians are special category employees. Would I qualify for this provision?
Q. I have a TSP plan from when I retired from federal service at age 49 in April 1994. I left my TSP funds in the program. I turned 70 on Dec. 22, 2015. Now that I am older than 70, what are my options? Is it mandatory for me to begin taking this money out? If so, what are the deadlines involved?
Q. I have $200,000 in my TSP. I probably will have eight more years to go to work. Can I convert my TSP balance over to the Roth TSP account?
Q. I can’t find data on the rates of return on the Roth TSP. How or where is the Roth TSP invested?
Q. I am a 62-year-old government employee and will have had a Roth TSP opened for five years by 2018. I plan on doing a rollover to a Roth IRA after I retire from government. Does the five-year window restart for tax-free withdrawals after the money has been transferred from the Roth TSP to the Roth IRA?
Q. I recently retired from federal service without adequate information on purchasing Medicare Part B. On the surface I was wondering if it made any sense to expand my health insurance beyond what I was getting as a full-time employee. I was unable to find a source where someone actually did an economic analysis of the issue. From my standpoint, it is an economic decision: I can afford to pay either way. I have Kaiser health insurance in northern California, and it seems to save $5 when I see a doctor if I pay for Part B; $10 for a prescription. This…
Q. I will have 41 years and 11 months government service in October of 2016. I am in the CSRS. I plan on retiring Jan. 3, 2017. It is my understanding that the time period between October and January that retirement will be taken from my pay, but no more contribution from the government. It is also my understanding that this deduction will be placed into an account that pays 3 percent interest. My questions are, can I leave this money in the account and continue to earn 3 percent after retirement? Can I add to this account before retirement?…
Q. I am 71 and employed with the government. Question: Is it mandatory that I withdraw all of my TSP upon retirement within a few months.
Q. My family and I are covered by the federal BCBS program through my federal position. My wife who is older will be 65, ( I am 57) in a couple of months and has just filed for Medicare A coverage. I asked the local BCBS rep for our agency when and whether she would need to file for the Medicare part B. The BCBS rep said when I retire she would need to file then for Medicare B coverage. My question is, would having and paying for Medicare B with the BCBS policy be redundant coverage? Your elaboration would…