When you’re investing for goals, like retirement income, that may be many years off — it can be easy to lose sight of those objectives and become distracted by what’s happening at the moment. Nothing provides investors with a better opportunity to make this mistake than market volatility. Your investment portfolio has been growing nicely and fairly steadily for years and then, for no clear reason and without warning, its value falls — far and fast. One day, you felt good about your TSP’s prospects for supporting a nice standard of living in retirement, and the next day, your confidence…
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. From private industry, I have both a traditional and Roth IRA. As a govt civil servant, I contribute to my TSP. Instead of putting catch up contributions into my TSP, can I place the catch up contribution to my Individual IRA?
Q: I’m retired as of May 31 2015. In July 2015 I transferred most of my TSP account into an IRA (UBS financial). Since I still have a TSP account, can I move the IRA money back into my TSP account? If so, can it be done this year? I heard I would have to wait 2 years before I could do that (so says a TSP representative). Would you agree with the rep on the 2 year wait? Any more info on this subject would be appreciated.
Q. I have worked for the Federal Government since 1995. I have twenty years on the job and I will be turning 62 in May of this year, and my pension is covered by FERS. I also have a TSP account. I am in a situation regarding conduct off the the job where I am afraid that I might be fired. My question is if this comes to pass, will I still be able keep my pension and TSP, will either one or both be taken away from me because of misconduct?
Q. I have reached the age where I can withdrawal my TSP without penalty, but must pay federal tax on it. Do I have to pay federal taxes if I gift it to my 18 year old son or would he pay the taxes on it?
Q. I moved my funds to the F, I, S, and C funds recently and am continuing to lose money. Wondering how I might reallocate or if I just need to wait a while to see if I recoup my funds. Can you help? I am near retirement so I was probably not being cautious enough.
Q. I noted in your most recent answer that “Under the current rules, your withdrawals will come, proportionately, from both the Traditional and Roth accounts.”. That would seem to argue in favor of rolling over any Roth TSP to a Roth outside of TSP, both to reduce the amount of the TSP RMD and not having to withdraw anything from the Roth.
Q. I retired from the Federal Bureau of Prisons on November 28,2014. I withdrew a part of my TSP receiving it on February 17, 2015. When I received my 1099 it identified my distribution code as 1 -early premature distribution. Why is it not code 2-early distribution exception applies, since I am federal law enforcement?
Q. I am 70 ½ years old. I have $200,000 in my TSP. What is the best course of action for me, since I do not need any of the money? Can you please provide some advice for minimizing the tax?
Q. I work with the U.S. Postal Service. I will reach full retirement age at 62 when I have 25 years. Would I be eligible to withdraw money at age 59 ½ from my TSP without a federal tax penalty? I understand the normal taxes would be due according to my tax bracket.