Browsing: annuity

Q. If I separate from government service after 10 years at age 35, can I withdraw a chunk of my TSP and ask for annuity payments of 10 years or more to avoid the withdrawal penalties? A. In order to withdraw without penalty, you must meet one of the exceptions listed on Page 7 of the notice at

Q. My question has to do with choosing to withdraw my TSP account upon retirement. I understand I can leave my balance with the government and either choose equal payments for my expected lifespan or have the government purchase an annuity on my behalf. What I do not understand is the difference between choosing equal payments for the rest of my life and purchasing an annuity solely for myself? What are the pros and cons for each? I also don’t understand why I am also given a choice to choose a survivor benefit with my wife as the beneficiary should…

Q. I know you are not a CPA but I thought this has probably been asked before and that you might have an answer. Are annuity fees tax-deductible on traditional IRAs?

Q. I retired 2+ years ago under FERS with a substantial TSP account that I have not touched. I am looking at purchasing an annuity through TSP versus regular payments based on life expectancy (essentially the IRS required minimum withdrawals that I must start next year). I understand how the RMD is taxed. How will the annuity be taxed? Is there a source that explains the calculation?

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