Browsing: IRA

Q. I plan to retire next year and am considering the transfer of my entire TSP into a tax-deferred IRA. Once I leave federal service, I will not be able to contribute to my TSP account any longer. If I make the transfer of my TSP into a tax-deferred IRA, can I still make contributions to the new IRA and reduce my taxable income in retirement? Or for tax purposes, would it be better for me to leave my TSP where it is and just withdraw an annuity directly from it?

Q. I am a 73-year-old Air Force retiree and TSP account participant. When I had to comply with the IRS’ required minimum distributions requirement at 70½ years of age, I also had regular certificate of deposits of a savings nature (pretaxed) in different facilities such as savings and loans. I elected to consolidate all of my savings for ease of record-keeping and accidentally renamed my CDs as IRA accounts when they matured for a greater percentage of return. Last year I learned that I could contribute again into my TSP account even though I was not working, so I rolled over all of…

Q. I will be 70½ in October 2017, and I understand I will be required to take my first required minimum distribution from my non-TSP IRAs in 2017, or wait until April 2018 and take two RMDs (the one for 2017 and the one for 2018). However, since I am still a federal employee and will remain so until I retire on Jan. 5, 2018, I believe I will not have to take a TSP RMD for 2017, so I will only need to take a single RMD from TSP in 2018. Is that correct?

Q. I am covered under the FERS and plan to retire at the end of April 2017 at age 57 with 33 years of service. I intend to take out a TSP general purpose loan just prior to retirement to pay off some debt and then employ a combination withdrawal strategies for the remaining balance: TSP monthly payments, partial lump sum (paid to me) and a rollover to an qualified IRA. I want the monthly payments to start as soon as possible but delay the lump sum and rollover to occur in 2018. Is this a sound plan? Can the…

Q. I am 69 (I will be 70 on July 5, so I will be 70½ on Jan. 5, 2018). I am doing my homework about taking my required minimum distribution amount from my only IRA. If I take the minimum amount next year (2018) and find that later on I need to take a bit more than the required minimum amount, will I be able to change what I elect to take at 70½? Or is that the set amount forever and can’t be changed?

Q. My wife and I are both 36-year-old federal employees. We both contribute the max contribution to our TSP accounts — $18,000. Additionally, we each invest $5,500 in separate Roth IRA life cycle mutual funds through USAA. Combined, we have about $600,000 in our TSP accounts and about $100,000 in our IRA accounts. We live a rather frugal life, and started investing later in life due to grad school, so we are looking for ideas on additional avenues of investment when all other tax advantaged investment vehicles are maxed out. Do you have any advice for our situation?

Q. I resigned from the federal government in 1989 and withdrew my retirement funds ( about $12,000 worth). I was reemployed in 2005 and am in CSRS Offset. I plan to retire in 2022. According the FHR Navigator benefit system, the redeposit I would owe as of Sept. 2, 2022, is $35,512 (withdraw amount plus accrued interest). Can I pay the amount of redeposit I owe (today, presumably less than $35,512) from a rolled over IRA with Vanguard?

Q. I plan on retiring next August at 57 years old. I would like to buy an immediate annuity but do not want to buy the MetLife FERS annuity. Their interest rates for the annuity are extremely low compared to other annuities. When I retire at 57 years old, can I buy another annuity and avoid paying 20 percent upfront tax when buying that annuity? Also, can I get my payments without the 10 percent penalty for not being 59½?

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