Q. I retired after 26 years of active military service at the age of 52. I’m now 61 years old. I would like to withdraw all the funds in my TSP account for use in various home improvement projects. Am I subject to a 20 percent income tax and 10 percent early withdrawal penalties?
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Q. Do you have a follow-up on a way to leverage a TSP loan? I thought it might be a good idea to take out a loan against the TSP and put it into a real estate investment trust such as MTGE or CIM that pays pretty good dividends and have those dividends pay back the loan payments. Do you have any articles about leveraging a loan against the TSP?
Q. I have a TSP loan which I anticipate will not be repaid by the time I retire sometime past age 70. Will the unpaid amount of the loan that is declared a distribution after I retire be counted for the purposes of the Required Minimum Distribution for that year?
Q. When I turn 70½ and have to withdraw the money in my TSP, can I take half and put it in a Roth account and then what is left the next year have them pay me in an annuity?
Q. When I retire, is it possible to roll over my Roth TSP out of the TSP, and then leave the rest intact to draw from?
Q. I’m a Defense Department employee looking to retire in 2019. I attended an Air Force retirement seminar today; I’m not an Air Force employee, but they they allow Defense Logistics Agency employees to attend. The young man presenting the TSP training informed us that we could not or should not transfer funds from our TSP into a Roth IRA when retiring. He said I would incur a large tax that must be paid out of pocket not from my TSP transfer. He provided us with several option for TSP: full withdrawal. an annuity. a TSP monthly payout. an IRA rollover. He said the…
Q. I about to start working as a new federal employer soon. When I do join the federal agency, I’m deciding if I should roll over my 401(k) from my previous employer to my new TSP account. The question that I have is if I need to take a loan on my TSP, would the funds I roll over to my account be eligible for a general or residence loan?
For investors planning to rely on their invested resources to provide cash flow in retirement, market timing is a bad idea. There is so much wrong with it that it’s difficult to know where to begin or end, but I’ll try to hit the high points here. Market timing in a Thrift Savings Plan account is electing to deviate from the optimum asset allocation scheme for a period of time. The optimum allocation scheme is the one that will support your lifetime financial goals with the minimum possible risk. The optimum allocation scheme takes into account all known risks, including…
The Department of Labor recently enacted a rule requiring that “advisers” — meaning investment and insurance sales people — who offer “advice” to participants about their retirement accounts act as fiduciaries and accept the responsibility and liability that goes along with that role. In simple terms, this means that anyone who tells you to do something — anything — with your Thrift Savings Plan money, is obligated to put your interests ahead of all others. This poses a rather unpleasant problem for the “financial services” industry, which has built a massive profit generating machine upon a foundation that includes, as…
Q. I retired in 2014 with an annuity and fixed monthly payments, which began in mid-2014. I will be 70 in March 2017. If I do nothing, will the TSP automatically make a withdrawal and send me a check (or electronic deposit) made up of the difference between my annual withdrawal and the RMD? The difference should be about $1,000 for the year.