Q. Does one have to completely pay back TSP loans before one retires? I will have 30 years and 5 months of work under my belt and be 56 years old this month.
Browsing: TSP
Q. I have been investing in the traditional TSP during my entire career. I have approximately $585,000 in my account and plan to retire at 62 years old in 5 years from now. I’m contemplating changing my investments from the traditional to the Roth in order to lessen the tax burden later on in retirement when required minimum distributions kick in. My wife is self-employed and has been funding a Roth annually for the past 10 years. I began funding a Roth last year and we both plan to continue to fund a Roth for the next 5 years. Do you…
Q. My TSP account distribution percentages are G: 45; F: 5; C: 31; S: 5; and I: 14, all totaling $556,000 and $10,000 in a Roth. The TSP return from the past 12 months has been -0.29. I’m thinking about retiring this year at the age of 62, and I need $25,000 from the accounts plus increases based on inflation for 30 years. I plan to keep TSP in retirement. What changes in allocations do I need to meet these needs? Do I change to L2040?
Q. I understand that I can take a TSP loan just prior to retirement, not pay it and have it become a taxable distribution after 90 days. If the 90 days fall after the first of the year, will the tax be on the new year income or at the time of the loan? I’m a rehired annuitant, if that matters.
Q. I understand you’re a proponent of leaving your money in the TSP at retirement, mainly due to low cost. However, are there benefits to rolling it into an IRA? I’m thinking along the lines of inheritance for my beneficiaries. I thought I read once that the options for beneficiaries are more restrictive with TSP. What are the advantages and disadvantages of the two choices? I am a FERS retiree who is 62 years old.
Q. I’ve heard that if you have several years before you plan on withdrawing money from you TSP account, that you can invest in a stock fund (such as the C Fund). I have between nine to 11 years before retiring. I already have $400,000 in the L 2040. Would it be a safe bet for the next five years to invest in the C Fund?
Here’s a pop-quiz question for you: How many partial lump-sum withdrawals are you allowed to take from your Thrift Savings Plan account during your lifetime? Go ahead, write down your answer. Everyone knows that the answer is one, right? In fact, that is the stated limit in every TSP publication that I can remember seeing. This limit is also one of a number of common reasons that TSP participants decide to roll their account assets from the best retirement investment vehicle in the United States into an individual retirement account after retiring. But, while the TSP’s withdrawal restrictions are inconvenient,…
Q. I retired 20 years ago from federal service and left my TSP funds intact. Now approaching the age of 70½, what are my withdrawal options?
Q. I retired in February 2016 from the U.S. Postal Service. I want to withdraw a lump sum (about $130,000) from my Thrift Savings Plan to purchase a house. Would I lose my FERS Special Supplement?
Q. Can the TSP withhold state taxes? They are not doing that with my current distribution.