Q. I retired from 35 years of federal service about 3 1/2 years ago. Now I am 63 years old, and I have been receiving FERS retirement pension, Army Reserve pension and Social Security. I also have TSP of about 360,000. I do not need TSP right now; however, which fund in TSP should I keep my balance? Currently, I have G Fund, C Fund and I Fund.
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Q. I plan to retire on Jan 1, 2016, with 35 years in the United States Postal Service. I want to make a partial withdrawal from my TSP to put into a savings account for emergencies. I also want to start monthly payments beginning in January 2016 to supplement my CSRS retirement check. What TSP forms will I need to complete? If I submit the monthly payments form by the December deadline, will the January 1, 2016, start of the monthly payments be effected by my retirement date of January 1, 2016?
Q. I have recently retired from the government at age 62. My TSP took a hit in 2014. I had to take a loan in 2014 and will not be paying it back. It’s about $20,000, and I’m aware that I’ll have to pay taxes on this (I believe 20%, but I may be wrong). Due to unforeseen tragedies and life circumstances, I am in dire straits financially. I left federal service because there was no possibility for advancement or earning more income there. The income I get from my retirement annuity combined with my Social Security annuity equals more than what…
Q. I understand I can change the amount of monthly withdrawals with TSP once a year. Is this true?
Q. I will be retiring from federal civil service in a few years at the age of 71, and I have 2 rollover IRAs from previous employers, plus my current TSP. When I retire, the TSP will be used for G Fund investments only, with equity investments in the IRAs. My TSP balance is not large since I began federal service as a second career. I would like to keep my 2 IRAs fully invested and use the TSP G Fund to fund all my annual RMDs each April based on the calculated total of all three of those tax deferred sources. I…
Q. Can you comment on low-cost fund families (Vanguard for one) versus the TSP funds? You always recommend TSP funds because of their low cost. However, there are fewer funds in the TSP to choose from than there are available in Vanguard. Vanguard’s costs are not out of reason. Why not use Vanguard funds for the better selection at a still low cost?
Q. What are tax and/or RMD consequences to a federal employee under FERS who is currently 70 1/2 years old and who does not plan to retire for 2-5 years, but is considering transferring a significant portion (three-quarters) of their TSP to a private insurance-company annuity? The annuity does qualify as an IRA. The federal employee does not plan to access the funds until retirement. Can the employee continue to work for federal government without taking an RMD or paying any taxes on the transfer?
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. Can you confirm if a TSP rollover does, in fact, eliminate any pre-existing IRA basis?