Correction: The answer in this post contained the age 50½. It has been corrected to 59½. Q. I am a civil service employee under FERS. I recently retired from the Air Force Reserve. Is there any benefit or detriment to combining my two TSP accounts? None of my military account has contributions from combat pay.
Browsing: TSP
Q: I plan to retire at age 73 under FERS when I will have a very small nest egg upwards of $100,000 in TSP. I would like to leave that in the TSP in the long term. I understand that I have to take a withdrawal upon retirement; otherwise there is a penalty. I have been informed that I can take a withdrawal of $25 per month and still leave my money in TSP to accumulate there. Is this correct? I plan to save money from Social Security in the interim and may want to (if permitted) put that savings from…
Q: What form do I need to cancel medicare part B, I do not get social security benefits. I get a CSRS pension. I have GEHA health insurance. Because I took out TSP savings my premium for medicare part B jumped to 246 dollars a month. I want to cancel.
I hear a lot of complaints about the Thrift Saving Plan’s various limitations. One partial lump-sum distribution per lifetime and too few investment choices are probably the most common. But coming in third I’d guess would be that the TSP does not allow participants to select the exact source of funds used to fulfill a distribution request. TSP requires that any money distributed from your account come, proportionately, from each of the funds in which you are invested at the time the distribution is made. In other words, the asset allocation that will make up your distribution will always match…
Q. I am 39 years old, an officer of 14 years in the Marine Corps and married (she’s 37) with four beautiful children. I have a car payment worth $25,000 and don’t own a house or mortgage. I have spent the better part of the last six years paying off my student loans, which were more than $69,000. We are, thankfully, now in a position to begin investments, especially considering we have solid emergency savings established and very little consumer debt (the car is it and we don’t have credit card debt). I am considering starting the Roth TSP for myself and a Roth IRA for my…
Q. I still have my TSP account from when I was active duty. The wife and I are young enough to continue depositing from our monthly income. While active duty, deposits were made thru DFAS. Now I’m a civilian and working in the civilian (nongovernment) sector, how do I set up a monthly bank to TSP deposit? Or is this now impossible?
Q. I have a military TSP and a civilian TSP. I am retired military but still working as a civilian for the federal government, and I expect that to continue after I turn 70½. I know from your previous columns that I do not have to start taking the RMD from my civilian TSP as long as I continue working for the government. Does that exemption also apply to my military TSP? If not, can I avoid having to take the RMD by rolling the military TSP over to the civilian?
Q. I’m retired as of May 31, 2015. In July 2015, I transferred most of my TSP account into an IRA (UBS financial services). Since I still have a TSP account, can I move the IRA money back into my TSP account? If so, can it be done this year? I heard I would have to wait two years before I could do that (so says a TSP representative). Would you agree with the representative on the two-year wait?
Q. I had 50 percent of my TSP in the G Fund and the other 50 percent in the C Fund. Back in 2014, I lost about $17,000. In the past week I have lost about $8,000. My plan is to retire in January 2017 (I will reach my full retirement in December 2016). I recently changed my contribution to 60 percent to the G Fund and 40 percent to the C Fund. I’m considering just putting everything in the G Fund. It’s very important that I have as much money in my TSP as possible. If I lose a significant amount this year I…
Q. I have retired from federal service at the age of 56, with 30 years of service under my belt. I am under the FERS retirement. I have $329,000 in my TSP account. I want to withdraw equal monthly payments from my TSP account of $1,250 per month. Will this scenario be taxed as normal income, or will I be subject to the 20 percent tax rate?