Browsing: IRA

Q. My brother, and only sibling, died recently. I am the executor and beneficiary of his estate. He never married, nor did he have children. I am inheriting: $770,000 from an employer 401(k) managed by Vanguard; $73,000 from a past 403(b) pension; and $320,000 in life insurance proceeds. I am 59, receive a military pension ($60,000/year), and am employed full time by the federal government. I have $500,000 in the TSP. Can any of the inherited funds be rolled into my TSP? Can any or all of the inherited funds be combined into a single fund? What would you do? A. The TSP…

Q. My ex-husband has given me the forms to receive money from his TSP account, but what form do I use to roll it over into my IRA account?  A. The distribution request form should contain a section where you can direct the proceeds to be paid to your IRA custodian for your benefit. If not, you’ll have to roll the funds over yourself using your IRA custodian’s deposit form.

Q. I know TSP funds can be rolled into an IRA, and IRA funds rolled into TSP. Is there any limit on how many times money can be moved back and forth? A. There is no limit that I am aware of.

Q. I currently make the maximum and catch-up contributions to my TSP account and plan on retiring after 20 years of service as a law enforcement officer. I have a traditional IRA and also make the maximum yearly contribution with the idea of rolling this into my TSP post-retirement. Can I continue contributing to the IRA after I separate from government service, if I continue to earn income, then roll it into my TSP anytime post-retirement? A. Yes, although transfers of post-tax IRA money (from non-deductible contributions, usually) into the TSP is not allowed.

Q. I already separated from federal service. I have $65,800 in my TSP account. I’m 49 years old. I want to receive substantially equal periodic payments (SEPP) until age 59 1/2 (to avoid the 10 percent penalty). I also want to be able to contribute to the TSP via IRA rollovers from time to time after age 59 1/2. I know I can do an IRA rollover into the TSP as a separated employee, but I don’t know if I can still do a rollover into the TSP after the substantially equal periodic payments have begun. The rationale for this…

Q. I only did four years in the Marines and got out back in ’08. I totally forgot I had a TSP until I got an annual update for it in the mail. All my money is in the G Fund and only has a little over $8,000 in it. Should I leave it alone? Roll it into an IRA? Try and work with it and spread the money in there to the other funds? If so, which ones? I’m 32 years old, and still have plenty of years of being a wage slave ahead of me. The only thing…

Q. If I take the VERA at age 55, can I roll my Fidelity IRA into my TSP and take monthly payments for all of it starting at 55 without the 10 percent penalty? Also, what is the time lag typically from retirement to get your first FERS annuity payment and TSP monthly payment? In other words, how long would I be out of pocket when I retire until those payments kick in?

Q. I am a federal employee with a TSP (Traditional). In addition, I currently own a Traditional IRA and a Roth IRA, while my wife owns a Roth IRA. This year, it looks like our combined income (MAGI) will likely exceed the threshold for the standard approach to contribute to our Roth IRAs. I have seen strategies to use the backdoor approach, but it will require smartly transferring my traditional IRA to TSP to avoid a large conversion taxes. My traditional IRA has a nondeductible basis of $12,000 and $78,000 of earnings. As I understand from research, I could transfer the $78,000…

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