Q. I am 62 and plan on retiring in the next few months. My goal is to have $4000 per month after taxes in retirement income. My FERS annuity and Social Security get me to about $4100, pre-tax. I have $350,000 in my TSP. I figure that if I can take out a partial withdrawal of $50,000 for emergency funds and liquidity purposes, stay invested in the G Fund with the remainder, take equal monthly payments of $1300 and meet my post-tax income goal, then my TSP should last at least until I’m 87, when I don’t expect to need it…
Q. I am retiring at the end of December and wish to start a partial monthly withdrawal of my TSP. Can I set aside an amount for the monthly withdrawal and leave a balance in the TSP to take as a final withdrawal at a later date? Can the amount of the final withdrawal be rolled into an IRA at that time? Which form do I use to start the monthly withdrawal process? Do I wait until I am officially retired before I file the form and how long does it take for the payments to start?
Q. I am on CSRS,over 59 1/2 years old, and thinking of withdrawing my TSP and putting it in a personal account. If, for example, I have $50,000 to withdraw, and there is a 20% tax penalty, as I understand it, this means I receive $40,000. Now, is $50,000 added to my income for tax purposes, or is $40,000 added to it? If it is $50,000, can I include the 20 percent penalty as tax deducted from my income on my tax return?
Q. I’ve been a federal employee for nearly five years now. My previous employer had a Money Purchase Plan and Retirement Savings Plan (401k) that has now totaled nearly $100k via Vanguard. What should I do with those plans since I have not touched them in 5 years? Should I roll them over somehow into the TSP or even an IRA?
Q. I became a federal employee in August 2012. Until recently, I was only contributing three percent of my income, but I was recently promoted and am able to contribute five percent. I have approximately $10,000 in my TSP and would like to retire in about 27 years (at which point, I will be 67). I’ve been contributing 95 percent to the 2040 plan and an additional five percent to the G Fund. Is this too conservative? The TSP is the only retirement account I have. Given the current market climate, what should my fund allocations be? My current salary is $63,722. I hope…
Q. I am retiring at the end of January 2016, and I turn 55 in February 2016. I want to make a partial withdrawal from my TSP, then begin monthly payments in the amount of my choosing, beginning in 2017. What forms do I use for this? Since I am retiring, do I have to wait to be notified by TSP?