The House Budget Committee’s recent proposal to cut the interest rate paid to TSP investors by the G Fund is misguided and destructive. Not only is it a blatant attack on your interests as a TSP participant, but it is based on faulty logic, and will undermine the value and stability of the largest employer-sponsored defined contribution retirement plan in the United States. As a fiduciary advisor responsible for the financial well-being of a large number of federal employees, annuitants and their families, I am gravely concerned about the inevitable effects of this ill-conceived proposal. In fact, this idea…
Browsing: TSP contribution
Q. I will retire under the law enforcement FERS category at 52 with a $400,000-plus balance. Can I take out a $100,000 lump sum at retirement without a penalty and then roll over the rest into a personal IRA?
Q. I turned 59 1/2 last November and noticed the 10 percent penalty is still being taken from my monthly TSP payment. Is this correct?
Q. I have a traditional TSP account, and I am considering utilizing the Roth TSP option. Does the money in a traditional TSP account and the money in the Roth TSP account compound and grow together as one account? Or does each compound separately? I have a substantial amount in my traditional TSP, and I do not want to lose the maximum growth from future contributions and compounding on that amount if I start utilizing the Roth TSP option. Example: A traditional TSP compounding at $200,000 is much larger than a new Roth TSP compounding at $2,000.
Q. I am 69 and plan to continue working after age 70. As I understand it, I won’t have to take RMD until April 1 of the year following the year I separate from federal service. May I continue to make contributions to my traditional TSP after I reach 70? A. Yes.
Q. I reached 70 1/2 yrs in 2014. I must start withdrawing my traditional TSP funds by April 1. I want to transfer the full amount (less than the RMDs for 2014 and 2015, plus 10% tax) to an existing ROTH IRA. A call to the ThriftLine informed me “there may be tax implications”. What might these tax implications be?
Q. I’m a retired federal employee and contributed to the TSP during my career. I’ve not taken a withdrawal. I’m 53 and started a new job as a state employee. I signed up for their state-sponsored 457 retirement account. Will I be able to roll that money into my TSP when I retire or leave my state employment?
Q. What percentage of all TSP funds are in each fund? That is, where are employees keeping their money? In my office, everyone seems conservative and most have their money in the G fund. Is this typical? A. The TSP releases this kind of information only occasionally, so this is not a question I can answer. I also don’t see how the answer would be of any practical use to a participant. Q. It allows a participant to allocate his money in a manner similar to others. In my workplace, my co-workers come to me for TSP allocation advice. Is…
Q. What percentage of all TSP funds are in each fund? That is, where are employees keeping their money? In my office, everyone seems conservative and most have their money in the G fund. Is this typical? A. The TSP releases this kind of information only occasionally, so this is not a question I can answer. I also don’t see how the answer would be of any practical use to a participant.
Q. I’m a federal employee at HAFB in Utah, and I’m getting ready to retire in six months. Looking at my TSP account today, I have lost more than $3,000 in the past couple days. I’m getting nervous because I’m so close to retirement and I don’t want to lose a lot of what I have in there. Right now, I have $283,249 in L 2020 and I contribute 20 percent of my GS-11 Step 8 income in the C fund which has $9,518 in there. Should I just go ahead and move everything over to the G fund and…