Q. My husband is 69 and turns 70 in February 2017. He took a job with the VA at the end of his career and became eligible for and invested in the TSP. He has a small amount in the TSP account, but most of his money is in Vanguard funds. My husband is now fully retired. Is there an advantage to rolling over his IRAs into the TSP?
Q. I have read several of the Money Matters articles regarding the fact that the SEP IRA can be transferred into the TSP. However, when I looked at the TSP 60 Form, Section II, Block 13, it lists a Traditional IRA, SIMPLE IRA and Eligible Employer Plan as choices for transfer to the TSP. If a person has an SEP IRA to transfer to the TSP, would they select the SIMPLE IRA or Eligible Employer Plan for this situation? Would the person need to explain to the TSP in an attachment that it is an SEP IRA transfer?
Q. I understand you’re a proponent of leaving your money in the TSP at retirement, mainly due to low cost. However, are there benefits to rolling it into an IRA? I’m thinking along the lines of inheritance for my beneficiaries. I thought I read once that the options for beneficiaries are more restrictive with TSP. What are the advantages and disadvantages of the two choices? I am a FERS retiree who is 62 years old.
Here’s a pop-quiz question for you: How many partial lump-sum withdrawals are you allowed to take from your Thrift Savings Plan account during your lifetime? Go ahead, write down your answer. Everyone knows that the answer is one, right? In fact, that is the stated limit in every TSP publication that I can remember seeing. This limit is also one of a number of common reasons that TSP participants decide to roll their account assets from the best retirement investment vehicle in the United States into an individual retirement account after retiring. But, while the TSP’s withdrawal restrictions are inconvenient,…
Q. I am a recent VA employee and would like to contribute as much as possible. I have maxed out the TSP and from my understanding, since TSP isn’t an IRA, does that mean I can make contributions outside of the TSP as well?
Q. I’m retired as of May 31, 2015. In July 2015, I transferred most of my TSP account into an IRA (UBS financial services). Since I still have a TSP account, can I move the IRA money back into my TSP account? If so, can it be done this year? I heard I would have to wait two years before I could do that (so says a TSP representative). Would you agree with the representative on the two-year wait?
Q. My aunt passed away recently and bequeathed me approximately $50,000 from a rollover IRA. Upon receipt, may I deposit these funds into my TSP account? Are you aware of any tax implications if I do?
Q. From private industry, I have both a traditional and Roth IRA. As a govt civil servant, I contribute to my TSP. Instead of putting catch up contributions into my TSP, can I place the catch up contribution to my Individual IRA?
Q: I’m retired as of May 31 2015. In July 2015 I transferred most of my TSP account into an IRA (UBS financial). Since I still have a TSP account, can I move the IRA money back into my TSP account? If so, can it be done this year? I heard I would have to wait 2 years before I could do that (so says a TSP representative). Would you agree with the rep on the 2 year wait? Any more info on this subject would be appreciated.
Q. We are approaching the age to take required minimum distributions from our TSP accounts as well as three IRAs. The IRS allows one to take the entire calculated RMD from a single IRA (rather than each account) to satisfy the RMD. Can the TSP’s mandatory RMD be declined if one is taking the total calculated RMD from an IRA outside of TSP? If not, it might make sense to roll over our TSP accounts to IRAs to be able to use the combined withdrawal rule.