Browsing: TSP contribution

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’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. 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?

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.

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