Q. I am retiring from federal service after 27 years. I am going to roll my TSP account over into an IRA account. I will have an outstanding TSP loan balance of far less than the value of my account, unless I pay it off. If I decide not to pay it off and take a partial distribution next year for tax purposes, will that delay the processing of my rollover at retirement?
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. Is it possible to refinance a TSP loan I got about a year ago? I’m having a hard time adjusting my budget to pay over $400, and my cost of living has increased.
Q. I am a FERS federal employee with 29 years of service. I am seeking a qualified federal retirement planner who can assist me. Is there a list of professionals I can select from?
Q. I will be turning 70 and a half years old in January 2015. I know I will have to start my RMD. I have talked to several financial planners that are suggesting I transfer all of my funds in TSP to a IRA and let the IRA distribute the RMDs. The advantage to that would be that I could receive the payments monthly, quarterly or yearly, rather than only monthly from TSP. If I go with TSP, I will have decided to arrange my monthly payments equal to a 12-15 year payout versus 26 and a half years. I don’t…
Q. I plan to retire in March 2016. I plan to take all of my TSP money in one lump sum. (I have many debts to pay off, such as student loans.) What are the advantages and disadvantages of taking it all out in one lump sum? How much is taxed (in terms of percentage)?
Q. I am almost 71 years old, still working and concerned about this year’s mandatory removal money from TSP. I called TSP and I can’t take any money until I separate. But will I owe minimum required distribution tax liability for 2015 before I separate?
Q. I have a suspicion: A speaker for MyFEDBenefits at MyFedBenefitsHelp.com was at my union meeting for the National Association of Letter Carriers. This speaker talked all about helping us with our benefits. I asked him why he didn’t mention how he gets paid. He said he was going to tell us like he always does but when he left he never did. What got me suspicious was when he said we could roll our TSP into one of his approved IRAs. This suggestion required me to speak up and tell everyone that the TSP has the lowest fees around and to read the Mike…
Q. After age 70 1/2 can you withdraw the balance of the money you have in an annuity without penalty? We rolled my husband’s TSP into an annuity after he retired.
Q. I just asked for an age-based withdrawal. I understand 20 percent withholding will take place. Will they tax the whole amount again as income when I file for taxes, or is the 20 percent withholding applied toward the taxes I’ll owe as it is considered income? I’ve heard I’ll only see about 50 percent of my withdrawal before it’s all over.
Q. I have over 43 years of government service. I have bought back my military time, and I am considering retirement. I’m just not sure that I can afford it. Any advice?