Browsing: Roth

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…

Q. I noted in your most recent answer that “Under the current rules, your withdrawals will come, proportionately, from both the Traditional and Roth accounts.”. That would seem to argue in favor of rolling over any Roth TSP to a Roth outside of TSP, both to reduce the amount of the TSP RMD and not having to withdraw anything from the Roth.

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…