Q. I am recently divorced, and my former spouse was awarded a portion of my TSP account. What needs to be done to start the process?
Browsing: TSP
Q. Recently, legislation known as the Defending Public Safety Employees’ Retirement Act was passed, which would amend the tax law to allow special category employees to withdraw money from TSP accounts prior to age 59½ without incurring the 10 percent IRS tax penalty. I am a military technician with 33 years of service. I know military technicians are special category employees. Would I qualify for this provision?
Q. I have a TSP plan from when I retired from federal service at age 49 in April 1994. I left my TSP funds in the program. I turned 70 on Dec. 22, 2015. Now that I am older than 70, what are my options? Is it mandatory for me to begin taking this money out? If so, what are the deadlines involved?
Q. I have $200,000 in my TSP. I probably will have eight more years to go to work. Can I convert my TSP balance over to the Roth TSP account?
Q. I can’t find data on the rates of return on the Roth TSP. How or where is the Roth TSP invested?
Q. I am a 62-year-old government employee and will have had a Roth TSP opened for five years by 2018. I plan on doing a rollover to a Roth IRA after I retire from government. Does the five-year window restart for tax-free withdrawals after the money has been transferred from the Roth TSP to the Roth IRA?
Q. I will have 41 years and 11 months government service in October of 2016. I am in the CSRS. I plan on retiring Jan. 3, 2017. It is my understanding that the time period between October and January that retirement will be taken from my pay, but no more contribution from the government. It is also my understanding that this deduction will be placed into an account that pays 3 percent interest. My questions are, can I leave this money in the account and continue to earn 3 percent after retirement? Can I add to this account before retirement?…
Q. I am retired military age 64, and my wife is 62. I plan to retire this year after seven years of federal service. On top of my military retired pay, Social Security and federal retirement I would like to take $20,000 per year from my TSP, 401K and IRA investments. I have approximately $225,000 in the TSP and $750,000 spread across several Vanguard and USAA funds. How would you recommend that I consolidate these funds where I can have the $20,000 available each year with the remainder continuing to grow?
Q. Let’s suppose I have a TSP account balance of $300,000, and when I die I leave the $300,000 to my spouse in a beneficiary participant account (BPA). She then sets it up so the two children we have are beneficiaries in equal shares. When she passes, my understanding according to TSP rules is the children cannot transfer the money into an inherited IRA to minimize their tax consequences. The money will have to be paid out in equal shares to the children and be fully taxable. I was told that in this case the spouse should transfer the money out of…
Q. I am leaving NAF service and going GS. I currently have NAF retirement and a 401(k). I have to decide on whether to keep the NAF retirement plan. I was advised once before this is a better plan than FERS and TSP, but recently was told otherwise. Do you have any information that breaks down the pros and cons of each benefit system?