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?
Browsing: Roth IRA
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?
Q. I recently retired and would like to start taking monthly payments from my TSP account. Unfortunately, in 2013 I started putting a small portion of my contributions into the Roth option. This money will not pass the five-year test until 2018. There isn’t much money there, but I don’t want the hassle of figuring out the tax penalty and would prefer to grow the Roth in a separate account. I called TSP and got no help figuring out options. I read your solution about transferring almost all of the account out of the TSP, separating them, then transferring back the…
Q. Is it possible to roll over just my Roth TSP account to a IRA and leave the non-Roth account in TSP? The big drawback that I see in the Roth TSP is not being able to direct it separately from the non-Roth account. What is your take on this issue, and is there any way to work around it?
Q. I am 60 years old and was wondering whether I can open a TSP Roth IRA in addition to my TSP Traditional IRA that I started 22 years ago, and withdraw from it in approximately two years without any penalty when I plan to retire and start withdrawing my TSP. What are your thoughts?
Q. I am a 62-year-old government employee and will have had a Roth TSP opened for five years by 2018. I plan on doing a rollover to a Roth IRA after I retire from government. Does the five-year window restart for tax-free withdrawals after the money has been transferred from the Roth TSP to the Roth IRA?