Q. I have a TSP account. A portion of it is tax-exempt combat pay. When I was in combat, TSP didn’t offer Roth IRAs and, therefore, the money was combined into one account. However, the statement reflects how much of the pay is tax-exempt. I’m considering rolling over my accounts to have more options. TSP told me that they would have to send me a check for the tax-exempt portion and that they can roll the rest into a IRA. If they send me the tax-exempt money, can I deposit it into a Roth?
Browsing: TSP withdrawal
Q. I am about to take a demotion from a full-time, year-round position at the GS-08 pay grade to a 13/13 (six-months-on/six-months-off) permanent seasonal position at the GS-04 pay grade, effectively cutting my annual salary by 70% (not counting what I will get from unemployment during the times when I am laid off). I own my home, but still owe approximately $85,000 on it. Due to the downturn in the housing market, where I was once 30% or so paid off, my loan is now hovering right around 95-100% of my home’s current loan value. I have a fairly substantial…
Q. I am retiring from federal service after 27 years. I am going to roll my TSP account over into an IRA account. I will have an outstanding TSP loan balance of far less than the value of my account, unless I pay it off. If I decide not to pay it off and take a partial distribution next year for tax purposes, will that delay the processing of my rollover at retirement?
Q. I will be turning 70 and a half years old in January 2015. I know I will have to start my RMD. I have talked to several financial planners that are suggesting I transfer all of my funds in TSP to a IRA and let the IRA distribute the RMDs. The advantage to that would be that I could receive the payments monthly, quarterly or yearly, rather than only monthly from TSP. If I go with TSP, I will have decided to arrange my monthly payments equal to a 12-15 year payout versus 26 and a half years. I don’t…
Q. I plan to retire in March 2016. I plan to take all of my TSP money in one lump sum. (I have many debts to pay off, such as student loans.) What are the advantages and disadvantages of taking it all out in one lump sum? How much is taxed (in terms of percentage)?
Q. I am almost 71 years old, still working and concerned about this year’s mandatory removal money from TSP. I called TSP and I can’t take any money until I separate. But will I owe minimum required distribution tax liability for 2015 before I separate?
Q. I just asked for an age-based withdrawal. I understand 20 percent withholding will take place. Will they tax the whole amount again as income when I file for taxes, or is the 20 percent withholding applied toward the taxes I’ll owe as it is considered income? I’ve heard I’ll only see about 50 percent of my withdrawal before it’s all over.
Q. An apparent clerical error caused an unauthorized distribution of TSP funds paid directly into my bank account (direct deposit via DFAS payroll). The only option I’ve been given is catch-up contributions to return the funds. I was told I would need to make up the income tax withholding to get all the funds back in. Are there any other options I could pursue?
Q. I am retiring at age 50 as a federal law enforcement official at the end of the year. I would like to make penalty free withdrawals from my TSP starting next year. Can I make monthly withdrawals from my TSP account in the amount of my choosing without incurring the 10 percent early withdrawal penalty? I would not change the amount of the TSP monthly distributions until sometime after age 59. The TSP computed payments based on my life expectancy were too low of a figure.
Q. I am 53 years old with over 25 years of federal service (FERS). I am taking a discontinued service retirement. When can I access my TSP without penalty?