Q. When is it beneficial to roll my TSP over to an indexed annuity? I read so much about it not being a good idea, but I would like to hear the other side of the argument.
Browsing: TSP
Q. I am considering leaving the federal government next year when I turn 50. At that time, I will have 27 years of service and will be deferring retirement until I am 62. Is it possible to start collecting an annuity with my TSP balance at that time and will there be a 10 percent penalty for early withdrawal?
Q. I made a $50,000 loan to my TSP account. I separated from active-duty service. Now I’m being asked to pay the $40,000 remaining balance in full. If I allow the TSP to close the loan, can I move the funds to an IRA within two months after the loan is closed? If this is allowed, what IRA publication covers this transaction? Or would the best course of action be to pay the loan in full to TSP?
Q. I am current 57 years old and have a TSP balance of approximately $800,000, which is currently allocated: 78 percent in the G Fund, and 22 percent in C Funds. I plan to retire in September 2017 and will start monthly withdrawals of approximately $2,000 per month from my TSP. The men in my family typically live to the mid 80s. Is this a good allocation between funds, or should I diversify a little more?
Q. I am a FERS employee with 28 years in government service and about five years away from retirement. I evaluate my TSP portfolio allocation based on risk comfort, life expectancy, etc. in isolation from what I expect to receive from Social Security and my FERS pension. My allocation is roughly 60 percent stocks, 40 percent bonds (mostly G Fund). Recently, I have been told that because I will have a guaranteed income stream from my FERS pension, I can afford to take more risk in my TSP and I should move money from the G Fund to the stock side of the portfolio.…
Q. Could a retired federal employee transfer funds out of TSP into an IRA near the end of one year, then buy a QLAC at the beginning of the next year with 25 percent of the funds in the IRA, and then transfer the remaining balance of the IRA money back into the TSP? If so, this would be a way to use TSP money to purchase a QLAC, thus reducing the minimum required distributions from the TSP account.
Here are the year-to-date returns, through the end of June, for the five basic Thrift Savings Plan funds: C Fund = 9.34% I Fund = 14.10% S Fund = 7.41% F Fund = 2.48% G Fund = 1.17%. Interesting? Maybe to some. Useful? I don’t know how. As an investment manager — or TSP participant, as you are commonly known — you are responsible for making or delegating the making of a massive series of decisions. Some of these decisions, like whether you contribute to the Roth or the Traditional TSP accounts, will most likely wind up being relatively insignificant.…
Q. I am my sister’s beneficiary for her TSP account. She recently passed away. I am retired and taking RMD on my IRA, 203B’s, etc. Is it possible to add the TSP funds to my IRA or must I take a lump amount and pay taxes on that amount immediately?
Q. What would be the allocation for a moderate portfolio TSP? What percentage for C Fund, G Fund, I Fund, S Fund and F Fund?
Q. I will be 56 in August, already have 32 years of service at USPS and I am a FERS employee. I started contributing to the Roth TSP 5 years ago. If I withdraw anything from my TSP in 2018, will I be penalized because as I recently found out all dispersals come from both the regular TSP and the Roth proportionally. Do I have to be 59 1/2 to get penalty free withdrawal from Roth TSP or am I good at my MRA + 30 retirement? I thought I had read if you retired on an unreduced retirement that there were…