Q. Years ago, I worked for an aerospace company. Now this company is offering me a lump sum for my pension. Is it possible to directly transfer this lump sum or a portion of the lump sum into my TSP account? A. Probably, if the existing account contains no after-tax contributions. See the instructions for Form TSP-60 for the basic rules of eligibility for transfers into the TSP.
Browsing: TSP contribution
Q. I plan to retire prior to fully repaying my TSP loan balance. If the loan balance is eventually repaid in a lump sum from my TSP account balance, does that count as my one partial lump-sum distribution? A. No.
Q. I’m confused about the 5 percent agency matching base pay as compared to the $17,500 threshold. After looking at the TSP website and seeing that my agency will only match up to 5 percent of my base pay which comes to about $3,300 roughly. I am currently contributing the max amount of $674 per pay period to get me to $17,500. What would be the benefit of maxing out the $17,500 if the agency is only matching $3,300?
Q. Do any of the TSP funds generate dividends that are automatically added to the account in the form of shares or are the only shares added to my accounts done when I and my employer purchase shares on payday. If certain funds do generate dividends in the form of shares added to my account how do I track them?
Q. Can you transfer Voluntary Contributions into the Roth balance of your TSP account? A. No. Transfers into the Roth TSP are limited to Roth 401k, Roth 403b and Roth 457b plan balances.
Q. I am 65 years old and have been retired 5 years from USPS under FERS. My mortgage balance is $58,500 at 4.5%. I pay $665/mo. for principal and interest. The mortgage balance will be paid off in Dec 2023. My TSP balance is $129,000 and all in the G fund earning 2.5%. Right now I take monthly payments of $700 from my TSP. I am thinking of increasing my monthly TSP payments (during open season) from the present $700 to $2,000. I would then put an extra $1,200 per month towards my monthly mortgage payments. I would then pay…
Q. Read your Money Matters columns in the Federal Times and am always intrigued by what advice you put for. Particularly interested in a column you did for the October 6, 2014 issue, entitled “Why market timing is a sucker’s bet.” I am a federal retiree with 30 years federal service, and have been retired 8 years. One of the issues I wish you would discuss, either in association with the above column, or as a standalone, is how retirees can continue to invest, albeit in a more careful manner.
Q. I recently returned from Afghanistan. I maxed tax exempt ROTH TSP contributions ($17,500) and made tax exempt Traditional TSP contributions as well. All contributions were tax exempt between January and June. Upon redeployment, I planned to continue to contribute tax deferred contributions not to exceed $17,500 between July and December in accordance with the 415(c) annual addition limit of $52,000. However, my TSP contributions were stopped. DFAS told me I could make NO additional Traditional TSP contributions as I had left the CZTE and was no longer eligible to contribute over the TSP limit. I spoke with a TSP representative and they stated…
Q. Can you tell me why TSP G Fund doesn’t earn interest every day? I retired just about two years ago. On the advice of my tax accountant, I consolidated all of my TSP into the G Fund about a year prior to retirement at age 62. I don’t have a lot in the TSP, but it is over $300,000. I created a spreadsheet to track my daily, weekly and monthly interest earned and payouts (that should continue till I am in my 80s). There are no TSP postings on weekend days, but on the next work day interest is posted,…
Q. How do administrative costs of TSP compare with TIAA-CREF? A. In general, the TSP costs are lower. TIAA-CREF offers a wide variety of investment and plan options and the administrative costs vary among them, so the difference depends upon what, exactly, you are comparing to the TSP.