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?
Q. What is your advice regarding TSP funds after retirement? I am 70 years old with 40 years of service. I will retire within the next 15 months. Do you suggest I leave my funds in the TSP or it is more advisable to roll them over into an annuity or an IRA?
Q. My husband and I are both FERS with law enforcement coverage. He is 52 years old but will be retiring soon because of terminal illness. He has a total of 31 years of federal time. I am 45 years old and just completed my 25th year of federal LEO coverage. I have no plans of retiring anytime soon. My husband will most likely dip into his TSP upon retirement. He has made me his beneficiary of his TSP. Whatever money is left in his TSP after he passes, how does that affect my beneficiary status? Does his TSP remain…
Q. I am 73 years old and a full-time government employee. I meet my annual IRA withdrawal through a non-government IRA investment. I also receive an annuity from TSP from an early retirement in 1999. I intend to fully retire in two more years. Should I keep the current annuity or roll it over into the final retirement? Also, will I have to take a mandatory retirement withdrawal annually as I now do with the non-government IRA? Is it mandatory for me to begin taking this money out? If so, what are the deadlines involved?
Q. In hindsight, l mistakenly took out $125,000 from my TSP to invest in another product that didn’t do very well. Of that amount, $25,000 is in a Roth IRA (yes, l paid the taxes on that), and l’m feeling pretty good about leaving that alone. What I’m wondering is (1) can l redeposit the $100,000 back into the TSP having only 18 months before l retire or (2) should l take the money out of the poorly performing account and buy a deferred annuity that will tie it up for about 10 years?