Q. I recently read there is a tax advantage if a beneficiary rolls TSP death benefits into an inherited IRA. Can you provide more information on that?
Q. I am a FERS employee and plan to retire next year when I turn 58 (with 33 years of service). I have a healthy TSP balance (approximately $1 million). I am married, and my husband will be in the workforce for at least eight more years. Upon retirement, I may withdraw 100 percent of the TSP funds and pay tax on it all next year. I would like to use the balance to pay off a mortgage on two rental homes I own with my husband ($330,000) and put aside another $100,000 in liquid cash for education for my…
Q. I have an outstanding balance of $24,000, and I’m retiring Sept 30. I’m told I will have to repay the loan within 90 days, or it will be treated as a disbursement. Will I have the option of asking it to be declared, say, Nov. 1? I want to keep it in this tax year and make estimated tax payments now.
Q. I quit civil service in 1986 after 15 years. I took out my money and put it in an IRA. When I cashed in my IRA, I had to pay taxes to the IRS, which I didn’t think I had to do. I’m now applying for Social Security. Will my Social Security benefit be reduced?
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?
Q. I am having difficulty finding the definition of substantial earnings. My Social Security statement shows “Your Taxed Social Security Earnings.” Is that the same as substantial earnings? If not, how do I find out what my substantial earnings are? I have the chart listing the substantial earnings for each year.
Q. I am a full-time federal technician in the Air National Guard. I am 54 years old with 33-plus years of military time and 27-plus years as a federal technician (under FERS). I have recently been involuntarily separated from the Air National Guard. This means I am losing both my full-time technician position as well as my part-time military position. I understand that I will be able to draw my FERS retirement (based on my total federal time) along with the Federal Retirement Supplement. Based on my involuntary separation, am I able to start drawing from my TSP without penalty?
Q. If I roll over funds outside of my employer-sponsored plan into my employer-sponsored plan, will these rolled-over monies come under the same required minimum distribution rules as the employer-sponsored plan?