Q. I am retiring from federal service at my MRA of 56 with 30 years of service. I plan to continue to work as a support service contractor to my federal agency. Can I withdraw money from my Thrift Savings Plan savings without penalty while I am working as a support service contractor? I know I will have to pay income tax on my withdrawals, but wanted assurance that my withdrawals will not be subject to a penalty since I meet MRA and years of service requirements. A. Under the circumstances you describe, your TSP distributions will be exempt from the…
Browsing: Roth
Q. Can a deceased spouse’s TSP account be rolled into the survivors existing TSP account? A. From the brochure “Your TSP Account”: If you have an existing TSP account from your own employment with the federal government or the uniformed services, you can move your beneficiary participant account into your existing TSP account. The money that you move will be treated as an employee contribution, but it will not be subject to the Internal Revenue Code (IRC) annual elective deferral limit, which limits the amount of regular tax-deferred and Roth contributions you can make to the TSP in a calendar…
Q. I am a federal employee with a TSP (Traditional). In addition, I currently own a Traditional IRA and a Roth IRA, while my wife owns a Roth IRA. This year, it looks like our combined income (MAGI) will likely exceed the threshold for the standard approach to contribute to our Roth IRAs. I have seen strategies to use the backdoor approach, but it will require smartly transferring my traditional IRA to TSP to avoid a large conversion taxes. My traditional IRA has a nondeductible basis of $12,000 and $78,000 of earnings. As I understand from research, I could transfer the $78,000…
Q. I want to fully fund a Roth IRA outside of TSP. Can I roll over $5,500 from TSP to fund my Roth, paying the taxes, of course?
Q. My wife and I contribute 18 percent to TSP (Roth) but also have five outside funds (1 mutual fund, 2 Roth IRA’s, 2 traditional IRA’s) that we no longer contribute to. I am retiring soon; however, my wife will work another three years. Would you recommend rolling them into our TSP (L2030)?
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 just opened a new Roth IRA because I thought I could rollover my TSP Roth funds to it. Now I am being told I cannot. I am retiring at the end of March and was hoping to have this resolved and only keep the traditional money in the TSP. Is this possible to do and, if so, how (forms?), etc?
Q. I am considering taking a position where I would be a re-employed annuitant and covered under a dual comp wavier. As my income looks like it would be over the limit for an IRA, what are the best ways I could continue to save for retirement while I am a reemployed annuitant and then roll those savings into the TSP?
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?