Correction: A previous version of this post misidentified the the tax-exemption characteristic of a Traditional IRA. This post has since been corrected to explain a Traditional IRA is not tax-exempt. Q. I’m retiring at 50 years of age after 22 years in federal law enforcement. I’m considering withdrawing all my TSP funds to a financial institution under a tax-exempt traditional IRA. I understand there’s no federal tax liability; however, I reside in the state of California. Is there a state tax liability for the withdrawal?
Q. I have recently retired from the U.S. Postal Service under CSRS. I had been contributing the maximum amount toward my TSP. When I left, I received my balance of annual leave in a lump payment. I am rolling my TSP over to a Fidelity account to have more choices with regard to withdrawal options. Since the money from annual leave pay is treated as earnings, can I place some of it in the IRA account?
Q. I will be retiring at age 57. I will be taking monthly payments from TSP at that time. I understand after monthly payments are started, the only other option left is a full withdraw. If I take monthly payments until age 59½, can I then roll over the balance into an IRA? Flexibility in withdraw choices is my goal. Is rolling over into an IRA still considered a full withdraw, and is this possible?
Q. I am 68 and plan to retire in two years from a civilian position with a district attorney’s office. I have a traditional IRA in a Vanguard account, which consists of both non-deductible and deductible contributions. I no longer contribute, and the IRS Form 8606 reflects a $99,000 non-deductible basis. I would like to move that portion to my Vanguard Roth IRA and direct transfer the remaining portion to my TSP account, mainly to take advantage of the G Fund. If I move the $99,000 to my Vanguard Roth IRA first and then request Vanguard move the rest to TSP, will…
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 have a FERS disability annuity (I have not reached my minimum retirement age). It is taxed as ordinary income, but is it considered as earned income for purposes of contributing to an IRA?
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…