Browsing: TSP withdrawal

Loan default

0

Q. I’ve decided that it would be financially advantageous for me to default on my current TSP loan, in order to pay off other, more pressing and expensive debts. My loan payment is currently deducted automatically from my biweekly civil-service paycheck by the Treasury Department. So I have three questions: 1) Is there a mechanism by which I can have Treasury stop making the loan payment/deduction? 2) If so, then if I do so as of Oct. 15, will I be liable for the taxes on the deemed disbursement in this tax year, or in the next tax year? (I…

TSP early withdrawal

0

Q. I will be retiring with a law enforcement 1811 pension. I will still owe $30,000 on a TSP loan.  I understand I will have to pay taxes on the loan as they will consider it a pay-out. My question is about the additional penalty that may be involved. I have read under the Pension Protection Act of 2006 (PPA), Section 828, which  allows a retired federal law enforcement officer to withdraw funds from their TSP.  When the IRS form 1099 reflects the distribution code of “early withdrawal – no known exception, the retired employee can file a form 5329 with the…

Payoff mortgage with TSP

0

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…

TSP account

0

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.

TSP withdrawal

0

Q. I am 64 years old with 27 years of federal service and will retire in two years (FERS). I want to withdraw $50,000 now to help out my kids. When I retire can I make a lump-sum withdrawal? Can I make another withdrawal when I retire? If I took a lump sum I would probably invest most of it. What options do I have with my TSP money at age 66 when I retire after I withdraw money at 64?

TSP withdrawal

0

Q. I retire next August. If I start taking monthly withdrawals, will I ever be able to make the one-time withdrawal for something big that might come along and keep the monthly payments. Or do I have to take it before the monthly payments start?

Monthly payouts

0

Q. Are FERS retirement checks, TSP distribution checks and Social Security checks a monthly or bi-weekly distribution? Is there an option to make requests for either method? A. All are monthly.

TSP and divorce

0

Q. I am 56 and have been drawing on my TSP by monthly payments (not annuitized)for 2-1/2 years. I am getting divorced and having to split assets. My understanding is that you can’t switch to lump sum after starting monthly payments until 59-1/2. However, divorce being a life event, does the TSP allow you to choose a lump-sum option to the TSP owner once assets are split by court order? A. You may end your monthly payments in a full and final lump-sum distribution at any time.

Permanently disabled

1

Q. I am totally and permanently disabled by the VA due to service-connected disabilities. Can I withdraw some of my TSP without the 10 percent penalty? I’ve done some research and all I can find is the 10 percent penalty does not apply to people with total and permanent disabilities, but all the literature implies this rating comes from the Social Security Administration. A. The TSP does not levy the penalty. You must convince the IRS that you meet the disability exemption requirement. You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of…

1 2 3 11