Browsing: Roth TSP

Q. I have a TSP (Roth & Traditional) via uniformed service; I also have employer retirement accounts with TIAA (both Roth & Traditional), which is a 403(b). [I believe the scenario below would be the same for those with a 401(k).] To try to tease out and maintain the Roth funds for later, at separation/retirement from the reserves I am planning to take the one time bulk distribution (95-99 percent) of my TSP and have it be a direct rollover to my TIAA accounts. Once the TSP funds are in my applicable 403(b) Roth and 403(b) Traditional accounts at TIAA, I…

Q. I plan on retiring from 33 years of federal service with the Department of Defense. I have $1 million in my TSP and want to convert some of it each year to a Roth account. After retiring, I expect my taxable income to be about $100,000 per year. After retiring, if I transfer $50,000 per year from my TSP to a Roth account, what will my tax rate be?  Note: I’m assuming the federal tax rate between $77,000 and $165,000 is 22 percent, for over $600,000 is 37%. Would I be taxed 22 percent on the $50,000, since $100,000 +…

Q. There is a lot of information on sites regarding how to convert traditional TSP funds to a Roth IRA – and how to transfer Roth 401(k), Roth 403(b) and Roth 457(b) into the Roth TSP – but I can’t seem to find anything about transferring Roth TSP funds to a Roth IRA. I am told that this can be done (Roth to Roth), but can’t find anything definitive on it, or what form to use to do it.

Q. I will be retiring from the U.S. Postal Service in September after 30 years. I started Roth deposits in my TSP in 2014. I know if I withdraw before five years (Jan. 1, 2019), the interest portion from the Roth part will be taxable along with the conventional part. If I withdraw monthly before Jan. 1, 2019, will the interest in the Roth portion become tax-exempt after Jan. 1, 2019, or do I have to wait until Jan. 1, 2019, to start withdrawals to keep the Roth portion tax-exempt later on?

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 will be 56 in August, already have 32 years of service at USPS and I am a FERS employee. I started contributing to the Roth TSP 5 years ago. If I withdraw anything from my TSP in 2018, will I be penalized because as I recently found out all dispersals come from both the regular TSP and the Roth proportionally. Do I have to be 59 1/2 to get penalty free withdrawal from Roth TSP or am I good at my MRA + 30 retirement? I thought I had read if you retired on an unreduced retirement that there were…

Q. I just retired last month from federal service. My Ameriprise adviser has advised me to move my TSP (which is about $800,000) over to an IRA with Ameriprise and then move some of that amount over to a Roth with Ameriprise. Can I convert my TSP to a Roth TSP? If not, then should I transfer some, none or all of my TSP over to Ameriprise?