Q. I’m a FERS employee and 60-years-old. If I retire with annuity & TSP, and wait a few years before taking Social Security, the amount will be based on my salary at retirement, correct? However, every year I wait, 2 percent will be added to that salary, correct?
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Q. My wife and I are both federal employees under FERS, nearing seventy and about to retire. We have a question about how to make the required minimum distributions (RMDs). We each have a TSP account and each also have a rollover IRA from previous employment. We file taxes jointly. Must we take four separate RMDs from each of the four pre-tax accounts? Or, can we total up the combined amount of the four RMDs, and make one large withdrawal from one of the four accounts?
Q. My husband is recently retired on FERS Disability and is in interim status. He has roughly $75,000 in his TSP currently but he will not be 59 1/2 until April 2016. We want to have more money in our emergency funds. Can he open a regular IRA in his name now and then rollover the funds in his TSP into this new account after he turns 59 1/2 to avoid the 20% tax penalty?
Q. I am a FERS retiree and following your advice, I have not touched my TSP. This year I must start Required Minimum Distributions and am thinking of having TSP buy an annuity. The news says “the Fed” may raise rates soon. Will that raise the TSP annuity interest rate?
Q. I plan to retire in April 2016 under FERS with 31 years of service at age 58. I plan to begin a second career and don’t expect to take money from TSP until I reach my mid-60s. My current TSP balance is about $1.1 million. I have a rollover IRA from a former employer with a balance of about $90,000. Does it make sense to transfer this IRA to TSP?
Q. I am a FERS retiree and following your advice, I have not touched my TSP. This year I must start Required Minimum Distributions and am thinking of having TSP buy an annuity. The news says “the Fed” may raise rates soon. Will that raise the TSP Annuity Interest Rate?
Q. I am aware that I do NOT have to take a RMD from my TSP if I am still working full time as a Fed beyond age 70. My Fed colleague and I would like to “Job Share”, with each of us working twenty hours per week after age 70. Will the IRS let me take only half what my RMD would have been had I retired full time? I don’t need the distribution money and prefer to leave as much as possible in the TSP.
Q. When I rebalance my FERS TSP portfolio I usually find myself lowering my C fund percentage and increasing my G fund percentage, since C fund has been growing more rapidly recently (obviously, not always the case). But when I do this am I effectively selling C shares and buying G shares? If that is the case, will there come a day when I need to calculate my average share purchase price of C shares for every time I rebalance or change my fund allotments? Another way to put this question: When I change my portfolio balances or change my fund purchase…
Q. I am a FERS retiree and following your advice, I have not touched my TSP. This year I must start Required Minimum Distributions and am thinking of having TSP to buy an annuity. The news says “the Fed” may raise rates soon. Will that raise the TSP Annuity Interest Rate?
Q. I will retire under the law enforcement FERS category at 52 with a $400,000-plus balance. Can I take out a $100,000 lump sum at retirement without a penalty and then roll over the rest into a personal IRA?