Q. I am about 70½ years old and have a TSP. I retired in 1994 but left my TSP funds intact. Do I have to begin withdrawing these funds now that I am 70½ years old?
Browsing: TSP
The election has demonstrated how difficult it can be to predict the effect of world events on the investment markets. If there was a consensus on the effect the outcome would have on the markets, it was that a Trump victory would be bad for stocks. While the stock market did drop significantly immediately following the news that Trump had won, by the end of the following day, it was in positive territory and continuing to climb. During the following weeks, several major stock market indices went on to reach new record highs. Ahead of the election, I did not…
Q. My husband and I are both FERS with law enforcement coverage. He is 52 years old but will be retiring soon because of terminal illness. He has a total of 31 years of federal time. I am 45 years old and just completed my 25th year of federal LEO coverage. I have no plans of retiring anytime soon. My husband will most likely dip into his TSP upon retirement. He has made me his beneficiary of his TSP. Whatever money is left in his TSP after he passes, how does that affect my beneficiary status? Does his TSP remain…
Q. I will be 70½ years old in October 2017. I was planning to take a full withdrawal of my TSP account so I can set up trust funds for my grandchildren. I was told this was a bad idea, due to taxes in Virginia. What do you think? A. The alternative is to leave your TSP in place, make the trusts the beneficiaries of the account and contribute the required minimum distributions to the trusts as they are taken. This will allow you (and your grandchildren) to reap the unique benefits of the TSP for as long as you…
Q. I understand TSP does not withhold state taxes from periodic payments, but what I don’t understand is how those state (Ohio, specifically) taxes get paid. Does that mean I will have to pay estimated tax four times a year?
Q. I’m considering deferring retirement. Is it possible and/or advisable to roll my TSP into a self-directed 401(k)? I will need access to cash until I reach my minimum retirement age in 2018.
Q. I am a FERS employee planning to retire at age 60 in October 2017. I may use a one-time withdrawal option to withdraw some of the money (roughly 20 percent of the total ) from TSP to pay off some debt in 2017 before retiring and keep the remaining money as a pensionlike cushion (for years 2018 and 2019) until I reach age 62 and am eligible for Supplemental Security Income. Withdrawing and keeping the funds as cash in 2017 will add to my income and take me into a higher tax bracket . What options do I have to keep…
Q. I am 73 years old and a full-time government employee. I meet my annual IRA withdrawal through a non-government IRA investment. I also receive an annuity from TSP from an early retirement in 1999. I intend to fully retire in two more years. Should I keep the current annuity or roll it over into the final retirement? Also, will I have to take a mandatory retirement withdrawal annually as I now do with the non-government IRA? Is it mandatory for me to begin taking this money out? If so, what are the deadlines involved?
Q. I retired from the U.S. Postal Service in February 2015 at age 57, with 30 years and three months of service (3 years with the military). I did not withdraw any funds from my TSP account. My plans are to withdraw all funds in April 2017 when I reach 59½ years old to pay off debts and purchase income-producing real estate. Are there any tax ramifications and any penalties I would have to pay?
Q. In hindsight, l mistakenly took out $125,000 from my TSP to invest in another product that didn’t do very well. Of that amount, $25,000 is in a Roth IRA (yes, l paid the taxes on that), and l’m feeling pretty good about leaving that alone. What I’m wondering is (1) can l redeposit the $100,000 back into the TSP having only 18 months before l retire or (2) should l take the money out of the poorly performing account and buy a deferred annuity that will tie it up for about 10 years?