Q. If I retire at 56 years old with 34 years of work under my belt, will my monthly withdrawals from my Roth TSP suffer a 10 percent early withdrawal penalty because I am under age 59.
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 had 50 percent of my TSP in the G Fund and the other 50 percent in the C Fund. Back in 2014, I lost about $17,000. In the past week I have lost about $8,000. My plan is to retire in January 2017 (I will reach my full retirement in December 2016). I recently changed my contribution to 60 percent to the G Fund and 40 percent to the C Fund. I’m considering just putting everything in the G Fund. It’s very important that I have as much money in my TSP as possible. If I lose a significant amount this year I…
Q. I have retired from federal service at the age of 56, with 30 years of service under my belt. I am under the FERS retirement. I have $329,000 in my TSP account. I want to withdraw equal monthly payments from my TSP account of $1,250 per month. Will this scenario be taxed as normal income, or will I be subject to the 20 percent tax rate?
Q. Are there any disadvantages in moving my TSP balance to another financial institution besides paying higher management fees? I’m concerned that I won’t have access to my funds on an intermittent basis if left in the TSP.
Q. I am a U.S. Postal Service marketing employee under FERS. I plan to retire in 2021 at the age of 56 with 36 years of USPS employment. Will I be able to access my TSP account without penalty prior to age 59 ½?
Q. My aunt passed away recently and bequeathed me approximately $50,000 from a rollover IRA. Upon receipt, may I deposit these funds into my TSP account? Are you aware of any tax implications if I do?
Q. I turned 70 in October so I am going to need to start taking withdrawals. Can I reinvest this money? I don’t need it now, and I feel like it would be better used when I am older. Can I roll it over into another fund where I will pay taxes on the interest earned?
Q. I am a recent FERS retiree with 32 years of credited government service and retired at the minimum retirement age of 56 (I was born in 1959). I thought that I can withdraw my TSP at the MRA without incurring early withdrawal penalties. However, in reviewing my 2015 1099-R from TSP, box 7 indicates a (2), which I understand is an early distribution. Is this information correct?
Q: I am 39 years old, an officer of 14 years in the Marine Corps, married (she’s 37) with 4 beautiful children, have 1 car payment worth 25,000k, don’t own a house or mortgage, and have spent the better part of the last 6 years paying off my student loans which were above $69k when we started. We are, thankfully, now in a position to begin investments especially considering we have a solid emergency savings established and very little consumer debt (the car is it and NO credit card debt…we’ve been working hard). I am considering starting the ROTH TSP…
Q: I am aware of the passage of H.R. 2146 (TSP bill) which allow those under the law enforcement retirement system to access their TSP at age 50 without incurring the IRS’ 10 percent penalty. I retired from the military and was hired under an age waiver as a law enforcement office at the age of 43 (which would mean that if I want to retire under the federal law enforcement retirement system, I would need to complete 20 years of federal service — I have 6 more year before I can retire as a LEO). My question is: How often…