Q. I will be 72 in November and will continue working for the government for another two years. Can I change my TSP contributions to a Roth IRA now and be able to withdrawn the money from the account without penalty when I retire in June 2021? A. A penalty will be assessed against any Roth TSP earnings that are withdrawn before age 59 ½ or less than 5 years after Jan. 1 of the year in which you made your first Roth TSP contribution, whichever is later.
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Q. I’m a retired worker over 70 1/2. Are required minimum withdrawals required for the Roth TSP portion after the new rules go into effect or only for the Traditional amount of the TSP? If only for the traditional part, then the payment can come from either the Traditional or Roth part or both?
Q. I’m planning to retire on a December 31, which in the year I’m planning to retire will be in the middle of a pay period. I have a set amount taken out of TSP every paycheck. If I leave in the middle of a pay period, will I still have a withhold and will it be matched?
Q. Some employees are in disagreement over the minimum required distributions of TSP accounts. We are discussing retirements beginning five years or more from now, so the new TSP rules would apply. Would moving the Roth TSP funds to an outside Roth IRA account avoid the need for minimum required distributions on this Roth portion of a TSP account or would those particular funds still be a part of the funds subjected to MRD?
Q. I’m retiring and I’m having a withdrawal from the TSP. I understand the consequences of taxes and I am planning to move the rest of the money to an IRA, but should I leave any money in the TSP?
Q. I am currently employed as a full-time career Senior Executive with 24 years of service and two years additional military service. In December 2018, I turned 70 years old; I’ll reach the 70 ½ mark in three months, in June 2019. According to the TSP document “Withdrawing Your TSP Account After Leaving Federal Service” {p 3, Limitations on Leaving your money in the TSP}, I don’t have to withdraw funds until April 1 of the year following the year I retire. However, I will be subject to the RMD because of my age. Because of the tax implications, I plan to…
Q. I separated from the U.S. Air Force on 12/31/2015 at the age of 53. I had a Uniformed Services TSP during the duration I was in the Air Force. On 01/01/2016 I took a job at the same overseas base and received a civilian TSP at that time. I worked that job until 12/31/2017 and left federal employee for full retirement at the age of 55. I am trying to find out if both the Uniformed Services TSP and the civilian TSP would be exempt from the 10 percent early withdrawal penalty since I stayed in federal service until…
Q. I retired before the Roth TSP program was put into place. Can I now convert my TSP account into a Roth TSP account? If not now, how about after changes to withdrawals from TSP are put into effect this year?
Q. I accepted the VERA/VISP offer from my agency in 2017 when I was 54 years old. I will turn 56 in one month. Would I be subject to the 10 percent penalty if I withdraw funds from my TSP account? Are there any other options for me to withdraw funds before reaching the age of 59.5?
Q. I’ll be retiring from civil service in two years and I’ll be 70 years old. Is it worth transferring or rolling over my TSP into a Roth TSP on my day of retirement?