Browsing: Roth IRA

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 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?

Q. When I turn 70½ and have to withdraw the money in my TSP, can I take half and put it in a Roth account and then what is left the next year have them pay me in an annuity?

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 am 39 years old, an officer of 14 years in the Marine Corps and married (she’s 37) with four beautiful children. I have a car payment worth $25,000 and don’t own a house or mortgage. I have spent the better part of the last six years paying off my student loans, which were more than $69,000. We are, thankfully, now in a position to begin investments, especially considering we have solid emergency savings established and very little consumer debt (the car is it and we don’t have credit card debt). I am considering starting the Roth TSP for myself and a Roth IRA for my…

Q: I am 39 years old, an officer of 14 years in the Marine Corps, married (she’s 37) with 4 beautiful children, have 1 car payment worth 25,000k, don’t own a house or mortgage, and have spent the better part of the last 6 years paying off my student loans which were above $69k when we started. We are, thankfully, now in a position to begin investments especially considering we have a solid emergency savings established and very little consumer debt (the car is it and NO credit card debt…we’ve been working hard). I am considering starting the ROTH TSP…

Q. I am a federal employee contributing the maximum to TSP (Traditional). I currently own a Traditional IRA and a Roth IRA, and my wife owns a Roth IRA. As our combined income will soon exceed the threshold for the standard approach to contribute to our Roths, I am investigating strategies to utilize the back door approach to making Roth contributions. The fact I still have a traditional IRA is the issue — it is comprised of $12,000 of after-tax contributions, and $48,000 of pretax earning thus far. If I use the back door approach, I would have a large…

Q. I am 36 years old and make about $125,000 a year and file as single head of household. I have a $300,000 in a traditional TSP and about $50,000 in the Roth TSP. However, starting this year I will be making more than the $117,000 limit to invest in my private Roth IRA. I like the idea of Roth because I live in Nevada, which has no state income tax, and federally I am in the 25 percent tax bracket. In retirement I plan to leave Nevada to go to a state that has a 6 percent state income tax, while…