Q. My question is about having a TSP loan at time of retirement. I understand that if you don’t pay in full within 90 days, it is dispersed as income and subject to taxes and penalties. When it is dispersed, does it count as one of your allowable withdrawals?
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: My concern is what happens to my TSP account upon my death (when in retirement); while I understand it will go to my listed TSP beneficiaries; will they have an option to take the money over time so as to not be burdened with immediate taxes. Similar to the way on can take an inherited IRA?
Q: I am 45 years old, with 23 years of Federal Service. I have a target retirement age of 62. I have $90,000.00 in The Life Cycle Fund 2050. I just want to try and maximize my investment potential but I am not familiar with investing. Can you give me some advice or strategy going forward. Thanks.
Q: I retired CSRS 15 yrs. ago and now at age 70 1/2 years old It’s time to select a qualified distribution from my TSP funds. My Question is this; does my investment scheme remain the same after I start withdrawing money or does TSP move them to a fund of their choice?
Q. I am a recent VA employee and would like to contribute as much as possible. I have maxed out the TSP and from my understanding, since TSP isn’t an IRA, does that mean I can make contributions outside of the TSP as well?
Q. If I was to take a normal FERS retirement on Dec. 31, 2017, would the money I receive for unused annual leave be income for 2017 or 2018? Also if I have an outstanding TSP loan, would the unpaid balance be reported as taxable income for 2017 or 2018?
Q. I’m currently paying back a TSP loan that was taken out over three years ago. Can I request another loan during the payback, or will I have to wait until the first loan is repaid?
Q. I withdrew some of my TSP savings to blunt the impact of the economic crash. I thought this would not count against me. Now when I tried to set up a monthly withdrawal, I find that It is counted against me and that the only “option” is full withdrawal. Are there other ways to access my money? I’m considering rolling over to a different IRA.
Q. I’m 52 years old and have my entire account in the L2050 account. When withdrawals are made, it wouldn’t take an equal percentage out of each fund that comprises the L fund — or would it?
Q. I have a term employee (63 years old) that has worked for five years and paid into FERS and TSP. If he were to retire or resign, does he have to withdraw his TSP at that time?