Browsing: Roth

Q. I understand the lump-sum annual leave payment at retirement cannot be put into the TSP for deferred tax or matching purposes. However, can you elect to defer to receive the lump-sum payment until the following calendar year, such that it counts as earned income in that following year rather than the year you retire? If nothing else, it would at least count as earned income on the basis of which I can make another year’s worth of contributions to my brokerage Roths.

Q. My husband plans to withdraw all his money from the TSP with an in-service withdrawal when he turns 59½ in November. A portion of his account is a Roth that will not meet the five-year rule until January. For tax purposes, it is best that the withdrawal be made in November rather than January. He does not have an outside Roth set up, but I (his non-working spouse) have had an outside Roth account for more than five years. Is it possible to deposit my husband’s TSP Roth portion into my Roth account in November and then withdraw it in January…

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. I am 46 years old with 12 years of federal service under my belt. I am in the FERS system. I plan on working another 19-20 years. I currently contribute 7 percent to TSP, split up between the life-cycle funds 2030 and 2040. I would like to be able to contribute 15 percent, but at this time it is not possible. Would I be better off stopping the TSP and contributing to Roth — or a combination of both?

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 been investing in the traditional TSP during my entire career. I have approximately $585,000 in my account and plan to retire at 62 years old in 5 years from now. I’m contemplating changing my investments from the traditional to the Roth in order to lessen the tax burden later on in retirement when required minimum distributions kick in. My wife is self-employed and has been funding a Roth annually for the past 10 years. I began funding a Roth last year and we both plan to continue to fund a Roth for the next 5 years. Do you…

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…

1 2