Browsing: TSP

Q. My husband after 33 years of marriage has decided on a divorce. He is 63 and I am 61. He has a TSP. I will be receiving 50 percent as part of the divorce settlement. Will I have to pay tax on my share upon distribution or can I roll over my portion into an IRA? I do not have a 401(k). If I have to pay tax, would it benefit me and lower my tax penalty to take a portion over a series of years?

Q. I have a pension plan with a former company. I just received a notice from them that I can leave it in place to take when I reach retirement age or roll a lump sum payment in to another eligible retirement account (my TSP).  I am a FERS employee and will retire at 62 (in 12 years). If I leave it in place to take after I retire, I estimate the amount to be about $450 a month. Should I leave it where it is or think about rolling it over in to my TSP where I am in…

Q. You state that anyone who invests in the TSP should invest in the fund that corresponds most to their life expectancy if not sure of how to allocate among the C, S, I, F, G funds. Does this hold true if I retire at 55 and access the funds in my TSP immediately? After all, L2050 fund is for those that will access their TSP in 2045 or later, at least that’s what it says on the TSP site.

Q. I have the opportunity for a one-time lump-sum payment from the Thrift Savings Plan. I have not started taking an annuity from TSP. I am wondering what are the benefits or hazards of taking a one-time lump-sum withdrawal vs. starting taking an annuity? Taxes are great for one-time lump-sum withdrawal, but would it be as painful as just starting my annuity? When is it a good time to take a one-time lump-sum withdrawal? I am thinking of a one-time withdrawal and not starting my annuity until next year.

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