Q. I am thinking about retiring July 2016 at 56 years old. This is my minimum retirement age (MRA), but I will only have 28 years federal service. Will I be penalized if I start TSP withdrawals before age 59½?
Browsing: TSP
Q. I am retired from the military with 30 years of service. I have five years of creditable service with the federal government. Can I choose to leave my TSP investments in the account?
Q. I am 36 years old and make about $125,000 a year and file as single head of household. I have a $300,000 in a traditional TSP and about $50,000 in the Roth TSP. However, starting this year I will be making more than the $117,000 limit to invest in my private Roth IRA. I like the idea of Roth because I live in Nevada, which has no state income tax, and federally I am in the 25 percent tax bracket. In retirement I plan to leave Nevada to go to a state that has a 6 percent state income tax, while…
Q. I am retiring in a few months. My retirement plan includes a monthly pension (about equivalent to my current net pay) and the money saved in my 401(k) and TSP. I do not get Social Security. I put two children through college and have expensive loans (7 percent) and a 6-figure balance. Does it make sense to pull the money out of my TSP and use it to pay the student loans off? The monthly student loan payments are approximately $1,500.
Q. I recently submitted paperwork for a partial withdrawal of my TSP account (I am separated from federal service). I submitted this paperwork with guidance from a certified financial planner and after several phone calls to TSP. I wanted $240,000 rolled over into another retirement vehicle. TSP only sent them $112,000 — taxed the balance and sent me a check. When I called them they said their was nothing I could do now since the money had already been disbursed. I haven’t even received the check yet. What recourse do I have? I do not want to withdraw this money…
Q. I am retiring at the end of January 2016 with 32 years in the work force. I’m turning 55 in February 2016. Can I take a TSP loan out in January 2016, not pay it back, but pay the taxes? Does this still conserve my partial withdrawal option down the road? I was told I would have to take a partial withdrawal in the year I turn 55 to avoid the penalty, but if I do that, I eliminate the option later, and the amount I need would bump into a higher tax bracket. I’d ultimately like to take…
Q. I’ve taken note of your leanings toward the TSP over external funds. It seems it is the G Fund that you are particularly fond of. Can you tell me the advantages of the G Fund?
Q. I retired from the USPS on Nov. 28, 2014. I was a FERS employee with 35 years of federal service and was 57 when I retired. I transferred my TSP to an IRA in May 2015, I was told that I could not withdraw from my TSP until I was 59 1/2 without paying a penalty. I figured why not move it to an IRA. After reading the many questions on your website and your answers I now realize that this was not true, since we are in late 2015, and the money was transferred in May. Is there a way to go back…
Q. I am retiring at 62 with 41 years of federal service. I plan on leaving my TSP monies in my TSP account and taking a monthly withdraw. I’ve been told that if I pass away, my remaining TSP balance will be lost and not given to my wife who is the first beneficiary. Is that true?
Q. I have a big chunk of money in the TSP G Fund. Now that the interest rate hike is imminent, I need to find out a way to preserve the capital.