Q. If I take the VERA at age 55, can I roll my Fidelity IRA into my TSP and take monthly payments for all of it starting at 55 without the 10 percent penalty? Also, what is the time lag typically from retirement to get your first FERS annuity payment and TSP monthly payment? In other words, how long would I be out of pocket when I retire until those payments kick in?
Browsing: TSP contribution
Q. The TSP web site says that for 2018 the “maximum elective deferral” is $18,500. Does this refer only to the employee’s own pre-tax contributions from his/her paycheck? Or does it also include agency automatic or matching contributions? I thought agency contributions plus the “maximum elective deferral” are subject to a much higher “annual addition limit” – $55,000 for 2018. However, someone recently said that agency contributions are, indeed, included in the $18,500 limit. Can you please clarify?
Q. I am 74 years old and currently have TSP funds in the amount of $140,000 in the G Fund. Should I allocate about $30,000 or so in one of the riskier funds? I would like for my TSP to grow larger but am a little apprehensive about losing money if I move it. I didn’t start investing in the TSP until the last 15 years of government service. I only take out the RMD each year.
Q. I retired from the U.S. Postal Service on March 31, 2018, at age 55 under FERS. I had approximately $18,000 in gross earned income up to that point. I contributed approximately $3,000 to my TSP up to that point also. Can I still contribute $6,500 to my IRA for the tax year 2018?
Q. My wife and I contribute 18 percent to TSP (Roth) but also have five outside funds (1 mutual fund, 2 Roth IRA’s, 2 traditional IRA’s) that we no longer contribute to. I am retiring soon; however, my wife will work another three years. Would you recommend rolling them into our TSP (L2030)?
Q. For the past five years I have been making the maximum contributions ($18,500 plus $5,500 catch up). I am planning to retire on Sept. 30 this year. Can I make an equivalent contribution to TSP out of my final pay to make up the difference to achieve the maximum contribution for the full year? I have been making $713 regular and $240 monthly to date. If I can do this, I will plan to make contributions of $4,262 and $1,440 from my final pay check to meet the maximum limit for the year. Is this allowed?
Q. I plan on working in federal service for roughly 22 more years. I contribute enough to the TSP to max out the matching contribution. I read somewhere that it would be a good idea to direct the rest of my savings to an outside Roth IRA with a company like Vanguard so that I have more investment choices for my after-tax dollars. Good idea?
Q. Does contributing to the Roth TSP affect my Roth IRA annual contribution limits? Can I submit up to the limits of both in the same year ($18,500/year Roth TSP and $5,500/year Roth IRA) if I have a Roth IRA account in addition to my Thrift Savings Plan account?
Q. I noticed you always say employees should place their money in the L Fund that most closely corresponds to their life expectancy. However, on the TSP website shows you should invest in the L Fund that most closely corresponds to when you will withdraw the money. Can you elaborate on this issue?