Q. My spouse and I are FERS employees and are considering retirement in the second half of 2016. I have 30+ years and meet age requirements. My spouse meets the MRA +10 requirement. In anticipation of retirement and to take advantage of tax considerations, we are considering applying 100 percent of our wages, starting with the first pay period 2016, until we reach 2016 maximum TSP and TSP catch-up limits. During this time we can live off our cash reserves. Is there a down side to using this approach from the perspective of the government matching our TSP contributions? And should we use this…
Browsing: TSP contribution
Of the questions I receive from Federal Times readers, the most frequent must be “How can I avoid the IRS penalty on early withdrawals from my Thrift Savings Plan account?” and “How should I invest my TSP money?” The answer to the first question is straightforward and requires no more than an explanation of the rules. The second question is much more difficult to answer, and really can’t be answered properly without a fair amount of information, analysis and consideration. How you should invest your TSP account at any point in time depends entirely upon what the money is expected…
Q. I contribute my annual maximum $17,500 and $5,500 for a total of $23,000 to my TSP. I would like to open a Roth IRA and contribute the maximum of $6,500. Is this permitted by law? My adjusted gross income is $90,000 per year. Please advise.
Q. I retired from federal service and took a state job. I stared contributing money to my state-sponsored 457b retirement plan. I also rolled a small portion of my TSP into this plan. I wanted to continue putting tax-deferred money toward retirement. The 457b fees are higher than I expected. Is there any way to roll money back into my TSP without having to leave my state job?
Q. My husband retired last December but left his TSP balance in his account. I have a traditional IRA in my name only with Invesco mutual funds. I am going to add his name to the account to set up joint ownership. Can he then transfer his TSP balance into our joint account, or does he have to have an IRA in his name only to make the transfer? We won’t need the money for at least another 3 years when I retire under FERS .
Q. I started a position with the federal government in May 2013. I bought two months of time from a summer job with the VA. To be vested in my TSP, will I have to work until May 2016 or will the two months come off the top? I will have only been contributing to TSP since May 2016.
Q. I am 61 years old and single. I have about $146,000 in TSP and $183,000 in another retirement account, which is managed by my financial planner. I plan to work another 5-6 years. Would a Roth IRA be something I should consider? Or would it be wiser to just continue on in the regular tax-deferred TSP? I am still paying my mortgage but will have the rest of my debt paid off by the end of the year. A. Of course you should consider it — and all other reasonable options available to you, but that doesn’t mean you should…
Q. I’m maxing out my TSP contributions, including the catch-up contributions, now that I’ve hit 50. Given that catch-up contributions are neither pre-tax nor matched by the employer, doesn’t it make sense to make all catch-up contributions to a TSP Roth (which is also not pre-tax or matched) in order to take advantage of the tax-exempt growth those contributions will provide?
Q. I’m a federal employee contributing to the full capacity in the TSP program. Can I also purchase an IRA (Roth or conventional) and report to the IRS on my tax return?
Q. I have two years of service in the Department of Commerce and have been separated since 2012. When I left I did not vest in the automatic 1 percent agency contributions, and I had that amount forfeited. I have accepted a new federal position in the Department of Commerce and was wondering if I have to reset the clock on the three years required for vesting in the TSP? If the clock isn’t reset and I start back at the two-year mark, do the 1 percent agency contributions that I forfeited get returned to me? I never took a withdrawal of my contributions…