Q. Im 56-years-old with 31 years in the service (FERS). I’m not ready to retire but would like to make a one-time lump-sum withdrawal to use for a downpayment on a house. At my age , do I have to pay back the money, or is it going to be treated like an ordinary income and I would just pay a regular income tax?
Browsing: TSP withdrawal
Q. I have a question regarding TSP. I live in Pennsylvania, and when I filed my taxes a few years back, I received feedback that the forms were incorrectly filled out. I am supposed to pay up-front and not when I draw it. I explained to them that it isn’t a Roth — it is a traditional TSP account. The response I got back basically say to pay it up front. If I retire and move to a different state, and start to draw my TSP, will that state legally be able to collect taxes as well? Would that not be double taxation. People at TSP said they don’t…
Q. My wife and I have spoken several times to someone affiliated with the Society of Financial Analysis, who has portrayed his role as a fiduciary agent, rather than a suitability agent. He has offered investments in tactically managed funds that seem to have relatively good performance since the financial crisis of 2008; however, the fees for these funds at 2.5 percent to 3 percent seem unusually high. He was suggesting I take some of my TSP funds and do a one-time investment in these funds. What are your thoughts on this matter? A. I have never heard of the Society of Financial Analysis and…
Q. I am a FERS Federal employee, turned 60 last December, and have 20 years civilian service in a few days. I have an outstanding TSP general purpose loan with $37,000 balance. I had planned to keep working a few more years but my health won’t permit (no disability claims or anything). We used this loan to make a down payment on a home. I am trying to find out what the taxable distribution might be if I retire in July this year. TSP account (no Roth) has $193,000 now after the loan and I would like to see if…
Q. I’m 56 years old with 31 years in service. I’m not ready to retire, but I would like to make a lump sum withdrawal in my TSP account for a down payment on a house. Do I have to pay it back or will the loan be treated like an ordinary income and pay regular tax?
Q. My wife and I are both federal employees under FERS, nearing seventy and about to retire. We have a question about how to make the required minimum distributions (RMDs). We each have a TSP account and each also have a rollover IRA from previous employment. We file taxes jointly. Must we take four separate RMDs from each of the four pre-tax accounts? Or, can we total up the combined amount of the four RMDs, and make one large withdrawal from one of the four accounts?
Q. I was involuntarily separated from federal service due to downsizing. I have a TSP account that has been untouched since I left federal service. An existing loan was automatically treated as a distribution at the time I left service. I am 59 1/2 years old and would like to take a one-time distribution from my account. Will the TSP allow me to take the distribution? Can I do this electronically? What forms do I need to submit?
Q. Is the TSP protected under law from a judgment? In other words, is my TSP exempt from creditors, or can they garnish it? I was reading about certain retirement plans that are exempted from court order and just wanted to know if the TSP is one of them.
Q. My wife and I are both federal employees and recently took out TSP real estate loans to use toward the down payment of a home. She is seriously thinking about a career change and leaving federal service. I understand that the unpaid balance, and accrued interest, of the TSP loan will be due upon her separation from federal service. However, we do not have enough personal funds to repay the loan within the 90 days. I understand that TSP will issue a taxable distribution on the unpaid balance plus interest, and we will be liable for the tax and…
Q. My husband is recently retired on FERS Disability and is in interim status. He has roughly $75,000 in his TSP currently but he will not be 59 1/2 until April 2016. We want to have more money in our emergency funds. Can he open a regular IRA in his name now and then rollover the funds in his TSP into this new account after he turns 59 1/2 to avoid the 20% tax penalty?