Q. I am 58 years old and have been with the Transportation Security Administration for 14 years. My TSP account is down to whatever the government has put into it. I had taken out money to live on, as I am looking at a disability retirement due to some vertigo issues. They told me I can’t take out the final amount until I am 59½ — that will be another year. Is there a way to get those funds released prior to that due to hardship? I have used up all my sick and annual leave and savings due to this…
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Q. I’m a few years out from retirement but want to plan carefully for that day. A lot is written about earning money from outside sources (e.g., non-federal employment or self-employment) and how it affects Social Security benefits. What I want to know is if I retired today under the $15,480-allowed outside-income criteria, would my FERS annuity and any TSP income (either annuity or withdrawal) be included in that $15,480-income ceiling, or are they treated separately thereby allowing me to receive my full Social Security benefit, FERS annuity, TSP income and outside income together without reductions?
Q. I am separating from a covered law enforcement position after age 50, but before I attain retirement eligibility. I have an outstanding TSP loan that will become an early distribution. My understanding is that I will not be subject to the 10 percent penalty, but will pay income taxes on it. Can you confirm if this is correct? Also, I have a military TSP and will continue to contribute to it. Can I assume the loan repayment using those funds to avoid the distribution?
Q. I visited my Roth IRA ($20,000-plus) adviser for a one-year review a few days ago. She informed me it would be better to invest my $150,000-plus with Edward Jones instead of the mandatory MetLife annuity required by TSP. Do I earn interest on my annuity and can I raise my yearly payment, or even pick the dollar amount? Does MetLife provide this information so I can make a educated decision? What do you suggest?
Q. I’m retiring at the end of May 2017 with 25 years of civil service under FERS. I’m considering maximizing my TSP contribution (15 percent equaling $18,000) and TSP-C contribution ($6,000) in 11 pay periods before retirement. What will be the amount of government matching?
Q. I am a federal employee who plans to retire with 30 years of service when I hit the 30-year mark in the year when I am 54 years old. Something that I have read that you talked about was that if I retire in the year when I am 55, then I can fully withdraw my TSP funds. I don’t become eligible to receive a retirement until I hit 56 years and two months. Will my early or deferred retirement allow or not allow me to take advantage of the “no tax penalty” rule that allows for full withdrawals when…
Q. I am a special agent with Homeland Security Investigations in New York. If I were to retire at the end of March (due to reaching my maximum retirement age of 57 years old), would I receive a full agency match to my TSP if I were to maximize my contributions in the three short months? In other words, if I maximized my TSP contributions from January to March and put in the full $24,000 (with catch-up contributions), would my agency match be fully funded (which usually amounts to about $7,500 or so per year)?
Q. After 20 years of marriage, my wife and I have decided to divorce. Both of us became civil servants after our marriage and have TSP accounts. The settlement that we agreed upon has me paying her roughly $100,000 from my TSP account to her TSP account. In researching how to achieve this, I have only found direction on what the court order contains and the process the TSP takes to execute the court order. The brochure explaining this also states: “The party who must pay Federal income tax on the distribution will receive tax reporting and withholding information from…
Q. What is your advice regarding TSP funds after retirement? I am 70 years old with 40 years of service. I will retire within the next 15 months. Do you suggest I leave my funds in the TSP or it is more advisable to roll them over into an annuity or an IRA?
Q. I am currently under the Office of Workers’ Compensation Programs, or OWCP, but have been approved for disability retirement. Can I make a withdrawal from my TSP account? Do I need to keep some money in the account to remain eligible to collect my disability retirement?