Browsing: Roth IRA

Q. I am a FERS employee and plan to retire next year when I turn 58 (with 33 years of service). I have a healthy TSP balance (approximately $1 million). I am married, and my husband will be in the workforce for at least eight more years. Upon retirement, I may withdraw 100 percent of the TSP funds and pay tax on it all next year. I would like to use the balance to pay off a mortgage on two rental homes I own with my husband ($330,000) and put aside another $100,000 in liquid cash for education for my…

Q: Because of the limited ability to withdraw TSP funds in a totally efficient manner for me, I am considering rolling my TSP account to Vanguard in two years when I retire. Vanguard provides the ability to withdraw Roth funds separate from 401k funds in any amounts I desire. As I understand, TSP requires withdraws to be equally prorated between 401k and Roth, based on the total balance. How does a TSP transfer occur … are the TSP Roth funds moved to a Vanguard rollover Roth fund and the TSP 401k funds placed in a taxable rollover account? It seems…

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 have a separate Roth IRA with a fiduciary adviser, but my TSP consistently out performs my Roth. Is there any benefit to cashing out my Roth and starting to contribute to the TSP Roth account? I am 45 years old and have a total of $150,000 in my Roth account. I am currently maximizing my traditional TSP contributions.

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 visited my Roth IRA ($20,000-plus) adviser for a one-year review a few days ago. She informed me it would be better to invest my $150,000-plus with Edward Jones instead of the mandatory MetLife annuity required by TSP. Do I earn interest on my annuity and can I raise my yearly payment, or even pick the dollar amount? Does MetLife provide this information so I can make a educated decision? What do you suggest?

Q. I have been contributing money to the voluntary contribution program throughout the year, and I plan to make a fairly large contribution before the end of year, at which time I plan to retire. I am 60 years old, with 41 years of service. I plan to roll the VCP contributions to a Roth IRA. Will the Roth IRA account have to be held for 5 years before being able to withdraw without a penalty? Do I need to complete the VCP-to-Roth rollover before I retire? Do I need to complete the required forms for the rollover as part…

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?

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