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% 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.
Browsing: TSP withdrawal
Q. In 2008, I took my TSP balance, plus IRAs balance at that time of $330K, and invested in Lincoln variable annuities (my Trad and Roth IRA’s and my wife’s Trad and Roth IRAs plus non-qualified account). There are no surrender charges if I decide to withdraw. The total balance as of today in annuities is about $415,800. I have currently in TSP $200,000. I want to know whether I can transfer what is in Lincoln annuities to TSP? I have $151,500. invested in various stocks. Can I transfer that to the TSP? I have $51,000. Cash value in a whole life. Can…
Q. Earlier in my career I was employed under the Civil Service Retirement System. When I left the government, I withdrew my retirement contributions. Several years later, I was rehired by the federal government and brought in under the Federal Employees Retirement System. Now I’m contemplating retirement and have the option to deposit my CSRS withdrawal in order to receive a CSRS annuity in addition to a FERS annuity. Can I directly repay CSRS with a portion of my TSP funds?
Q. My MRA is 56. If I retire at 56 years old with 34 years of service, can I begin to withdraw from my TSP immediately, or do I need to wait until I’m 59 and a half old?
Q. My wife’s health problems forced her to retire from her government job last year on disability. She began receiving FERS interim payments when she died in February. She provided for a survivor’s annuity, and has a CSRS deposit and redeposit totaling $53,000 from taking out retirement during a break-in service. I have the option to pay this back in order to receive approximately $700 more per month in the survivor annuity payment. Would I be better off paying this back, or investing this amount in the TSP to hopefully gain an equivalent amount in interest? I am also a…
As a Thrift Savings Plan investor, you have access to retirement investment funds that are about as inexpensive as you’ll find anywhere. In 2014, the total cost charged to participant’s accounts ranged from 0.029 percent to 0.049 percent of account assets, depending upon the fund. Even at the high end, 0.049 percent — or a little under 5 cents for every $100 invested — is extremely low. You can invest $1 million in the TSP, in a well-diversified portfolio, for $490 per year or less. I don’t think you can do that anywhere else. So, the TSP’s expenses are the…
Q. I am eligible to retire next year at age 50 as a law enforcement officer under FERS. I plan on taking life expectancy payments from my TSP/401(k) as soon as I retire. If, upon retirement, I elect to transfer my TSP balance to a company like Vanguard, will I still be able to withdraw life expectancy payments from Vanguard and avoid the 10 percent early withdrawal penalty?
Q. I’m retiring this year. I am a GS-13 under FERS with 32 years of service. When I get an annuity for my TSP, if I die, will my wife continue getting the same monthly payments? A. Payments will be made to your surviving spouse only if you elect this option at the time you purchase the annuity. A 100 percent survivor benefit is an option — if you’re willing to pay for it. There is no provision for specifying the timing of the monthly payments at the time of purchase. Once the annuity is purchased, however, you will deal directly…
Q. I will be retiring in August 2015 and am looking for advice on taking my TSP in annuity payments or monthly installments. I understand that if I go with the annuity, the money no longer is in my control, but I will have a guaranteed income for life. Whereas with the monthly payments I still have control to change the monthly payments on a yearly basis if I so desire but run the risk of outliving my funds. I am leaning toward the monthly payments since I am going to play it rather conservatively with my TSP funds in…
Q. I owe $200,000 on my mortgage, and I would like to know if it would be smart to get a $20,000 loan from my TSP every 2.5 years until I pay off most of or all of my mortgage? I still have 15 years left before I retire, so I figured I could pay off my mortgage and my TSP loan before I retire.