Q. I am a FERS employee with 33 years of service and will be eligible to retire at the end of the year when I turn 56. Upon retirement, I would like to keep my 401(k) money in my TSP account, but would like to take out approximately 4 percent per year in monthly payments. Would this be subject to the 10 percent IRS penalty for withdrawals before age 59 1/2?
Q. I plan to retire from federal service in about three years and start my TSP withdrawals then. My wife will continue working at that point; she has a 401(k)-like plan at her job that she contributes money to now. She also gets a fixed contribution from her employer, i.e., it does not depend on her contribution. Once I retire, should she continue contributing to her 401(k) or not? That is, she could keep contributing $X a year and I would end up taking $X more out of TSP. Or, she could stop contributing and I would take $X less out…
Q. My husband after 33 years of marriage has decided on a divorce. He is 63 and I am 61. He has a TSP. I will be receiving 50 percent as part of the divorce settlement. Will I have to pay tax on my share upon distribution or can I roll over my portion into an IRA? I do not have a 401(k). If I have to pay tax, would it benefit me and lower my tax penalty to take a portion over a series of years?
Q. I am 86 years old and going to retire in 2018. I want to know how much will I have to take out of my TSP account each month? My wife is 18 years younger than me; can this be used to lessen my required funds that I must take when I retire?
Q. I am retired from federal service (age 63) and have a part-time job. Do IRS rules allow me to contribute to an existing Roth IRA I have had since the 1990s (up to $6,500 a year) as long as my earned income exceeds $6,500? Can my wife (age 60) contribute to her Roth IRA up to $6,500 also, as long as my part-time income exceeds that combined total? Does the fact that the company I work part-time for has a 401(k) plan that I contribute minimum to just for the match matter?
Q. I am CSRS Offset. I withdrew my retirement funds years ago, and need to make a redeposit. I want to move money from my individual 401(k) to the Office of Personnel Management to make the redeposit. Will OPM report it to the IRS as a rollover, or will it be taxed as if I never re-deposited it?
Q. Is the TSP technically a 401(k)? I know all the same rules apply and, for example, when the contribution max or catch-up max goes up for 401(k)s, the TSP max also goes up, but I’ve never actually seen it referred to as a 401(k). If Congress changes the rules for 401(k)s as they are apparently considering, would the TSP rules also change, or would Congress have to address those separately?
Q: Because of the limited ability to withdraw TSP funds in a totally efficient manner for me, I am considering rolling my TSP account to Vanguard in two years when I retire. Vanguard provides the ability to withdraw Roth funds separate from 401k funds in any amounts I desire. As I understand, TSP requires withdraws to be equally prorated between 401k and Roth, based on the total balance. How does a TSP transfer occur … are the TSP Roth funds moved to a Vanguard rollover Roth fund and the TSP 401k funds placed in a taxable rollover account? It seems…
Q. I will be 56 in August, already have 32 years of service at USPS and I am a FERS employee. I started contributing to the Roth TSP 5 years ago. If I withdraw anything from my TSP in 2018, will I be penalized because as I recently found out all dispersals come from both the regular TSP and the Roth proportionally. Do I have to be 59 1/2 to get penalty free withdrawal from Roth TSP or am I good at my MRA + 30 retirement? I thought I had read if you retired on an unreduced retirement that there were…