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. 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.
Q. I’m retired and I wanted to rollover a 403(b) from a previous employer to my TSP. The problem is that the 403(b) does not sent a completed TSP-60 with the check. This has happened twice. I receive a letter from the TSP that they will hold the check for 15 days before sending it back to the sender. I know that there is a certain amount of time for having a tax-free transfer but I’m tired of this BS from both companies. Should I just request a full withdrawal from the 403(b) and deal with the taxes?
Q. I am considering taking a loan from my TSP to buy a car. I understand that if I retire before repaying the loan, the remaining amount will be declared a taxable distribution. I am old enough that when I retire I will have to take a minimum required distribution from my TSP each year. If the loan balance is declared a taxable distribution, will that amount count toward my minimum taxable distribution for that year?