Q. I retired from the federal government (Department of Veterans Affairs) on Jan 31, 2018. I did 32 years and retired at 56. I withdraw all my TSP funds and, of course, federal tax was taken out. When I file my 2018 taxes, do I pay the NYS/city taxes? I don’t have enough to itemize.
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Q. I am currently employed as a full-time career Senior Executive with 24 years of service and two years additional military service. In December 2018, I turned 70 years old; I’ll reach the 70 ½ mark in three months, in June 2019. According to the TSP document “Withdrawing Your TSP Account After Leaving Federal Service” {p 3, Limitations on Leaving your money in the TSP}, I don’t have to withdraw funds until April 1 of the year following the year I retire. However, I will be subject to the RMD because of my age. Because of the tax implications, I plan to…
Q. I separated from the U.S. Air Force on 12/31/2015 at the age of 53. I had a Uniformed Services TSP during the duration I was in the Air Force. On 01/01/2016 I took a job at the same overseas base and received a civilian TSP at that time. I worked that job until 12/31/2017 and left federal employee for full retirement at the age of 55. I am trying to find out if both the Uniformed Services TSP and the civilian TSP would be exempt from the 10 percent early withdrawal penalty since I stayed in federal service until…
Q. I’m 55 and a civilian employee. I’m retired Air Force, with a bit in my military TSP and a growing amount in my civilian TSP. I’ve just started converting all of my future TSP contributions to go to Roth, for one main reason: I plan to retire at age 62, and we’re going to take a lump-sum distribution of my TSP to purchase a house (won’t be eligible for a mortgage). The TSP balance at the time will be about $400,000 or so (hopefully closer to $500,000). I estimate that roughly 40-50 percent of it will be Traditional, and the rest Roth.…
Q. Can I avoid the 10 percent penalty if I file with the IRS for money I need when I retire under disability? The rest of it I want hand over to a firm like Vanguard … will I be penalized?
Q. I have a balance of $15,000 on my TSP loan. If I stop payment because of hardship, will I be penalized 10 percent? I realize I will have to claim it as income, but the $500 extra would really help me.
Q. I will have 25 years of law enforcement officer service and can retire at 48 years old. Will I be penalized for drawing my money from my TSP account before I turn 50? Can you explain the consequences, if any, and any alternatives if I face the penalty?
Q. If I borrowed money in 2018 but retired in 2019, to what year would the taxable distribution be allocated to? If this money will eventually be taxed anyway, what’s the difference with getting taxed now at the 20 percent or later at a similar rate?
Q. I’m 52 years old, with 33 years of service. If I’m offered VERA with a $25,000 bonus, can I immediately apply for the Social Security Supplement at the age of 52? Can I start the annuity from my Thrift Savings Plan at the age of 52? I want to make sure I have sufficient funds to live off of, if I’m not immediately employed by someone.
Q. When I retire I would like to pull money from my TSP (partial lump) to pay back a redeposit owed to my FERS. Can that be done and, if so, is the money taxed or suffer any other penalty? I will be 59 and 4 months upon my retirement Dec. 31, 2019. The redeposit is due 6 months prior to my retirement date. The amount I am paying back is $25,000.