Q. I have been contributing money to the voluntary contribution program throughout the year, and I plan to make a fairly large contribution before the end of year, at which time I plan to retire. I am 60 years old, with 41 years of service. I plan to roll the VCP contributions to a Roth IRA. Will the Roth IRA account have to be held for 5 years before being able to withdraw without a penalty? Do I need to complete the VCP-to-Roth rollover before I retire? Do I need to complete the required forms for the rollover as part…
The election has demonstrated how difficult it can be to predict the effect of world events on the investment markets. If there was a consensus on the effect the outcome would have on the markets, it was that a Trump victory would be bad for stocks. While the stock market did drop significantly immediately following the news that Trump had won, by the end of the following day, it was in positive territory and continuing to climb. During the following weeks, several major stock market indices went on to reach new record highs. Ahead of the election, I did not…
Q. I just turned 60 and eligible for a one-time TSP withdrawal. My financial adviser is pressuring me now to do so. TSP says don’t do it! Where can I find an independent consultant to advise me what to do? Naturally, any financial adviser will recommend a TSP withdrawal so they can get their hands on my money. When I don’t know what to do or get conflicting advice, I don’t do anything! Is that the right approach? I would rather make an educated decision one way or the other.
Q. I recently started a job as a civilian with the federal government. I’m 46 years old and I’m using the TSP retirement system. What fund should I use to maximize my money while adding 5 percent to the G fund. Should I change the allotment to another fund on the list?
Q. I am 46 years old with 12 years of federal service under my belt. I am in the FERS system. I plan on working another 19-20 years. I currently contribute 7 percent to TSP, split up between the life-cycle funds 2030 and 2040. I would like to be able to contribute 15 percent, but at this time it is not possible. Would I be better off stopping the TSP and contributing to Roth — or a combination of both?
Q. Do you have a follow-up on a way to leverage a TSP loan? I thought it might be a good idea to take out a loan against the TSP and put it into a real estate investment trust such as MTGE or CIM that pays pretty good dividends and have those dividends pay back the loan payments. Do you have any articles about leveraging a loan against the TSP?
Q. I have a Traditional IRA and a Roth IRA outside of the TSP. I am maxing out my annual TSP contributions and my annual catch-up contributions. Am I able to transfer both of the outside IRAs into the TSP without affecting my annual contribution limits?
Q. I’m a Defense Department employee looking to retire in 2019. I attended an Air Force retirement seminar today; I’m not an Air Force employee, but they they allow Defense Logistics Agency employees to attend. The young man presenting the TSP training informed us that we could not or should not transfer funds from our TSP into a Roth IRA when retiring. He said I would incur a large tax that must be paid out of pocket not from my TSP transfer. He provided us with several option for TSP: full withdrawal. an annuity. a TSP monthly payout. an IRA rollover. He said the…
Q. I about to start working as a new federal employer soon. When I do join the federal agency, I’m deciding if I should roll over my 401(k) from my previous employer to my new TSP account. The question that I have is if I need to take a loan on my TSP, would the funds I roll over to my account be eligible for a general or residence loan?