Q. I want to take the remaining required minimum distribution for 2013 in one lump sum (I have received monthly payments through May). Can this be done online at the TSP.gov website? If so, where exactly? If not, how do I do this? A. You can do it via the website by clicking the My Account link or using form TSP-77, which is available at https://www.tsp.gov/PDF/formspubs/tsp-77.pdf.
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Q. I’m planning to take out a residential loan to make a down payment on a house. Am I able to take out an amount but not use all of it toward the actual down payment? Would I be able to use a portion toward home improvement? A. Purchase or new construction only. Residential loan proceeds may not be used for renovation or repairs, which I assume includes improvements. You may want to contact the Thrift Line with your particulars to be sure, but I don’t think it will be allowed.
Q. I am a Postal Service employee who has civil service retirement and has been on workers’ compensation for several years now and probably will not go back to work. Can I get my Thrift Savings Plan money now as payments or do I have to retire first? Also, how can I add money into my TSP if I can’t take it out? A. As I understand it, unless you have separated from covered service, you will be subject to the TSP’s restrictions for in-service withdrawals. You should call the Thrift Line to be sure, however.
Q. I am CSRS and plan to retire Jan. 3, 2014. Since my annual leave payout will be part of my final paycheck and thus will be taxed as 2014 earned income, can I contribute part of it to Thrift Savings Plan for 2014 even though I will be retired? A. No.
Q. In an effort to increase my Thrift Savings Plan account before I retire Sept. 30, I assume I can open a traditional IRA and roll it over to my TSP account with no restrictions on amount. Is that correct? A. Correct, as long as the IRA contains only pretax money.
Q. I retired in 2011 because of a base closing. Before leaving, I put everything in the G Fund. Can I take money out of the G Fund and put it into another fund now that I’ve retired? A. Yes.
Q. My wife and I plan on retiring in seven years. We are covered by FERS and will each retire at the minimum age (56) with over 37 years of service for both. Can we combine our Thrift Savings Plan accounts at retirement? A. No.
Q. I’m no money expert and, in line with your advice, would like to do better than take the safe or easy route by contributing to the L Fund that most closely matches my life expectancy. How do I go about finding a financial adviser who is familiar with the Thrift Savings Plan and government employees? What sort of questions should I be asking them, and can you ballpark the cost of such an adviser? A. Your adviser should be: 1. Free from conflict on interest 2. Competent in the kind of work that needs to be done 3. Concerned…
I am regularly approached by Thrift Savings Plan investors with stories like this: “I made a big mistake with my TSP account. A few years ago, I lost a ton of money when the markets crashed, so I took all of my money out of the C, S and I Funds and put it into the G Fund. I’ve missed most of the rising stock market since then and I’m worried that I can’t afford to sit on the sidelines forever. Maybe I should just bite the bullet and get back into the market before it’s too late.” To the…
Q. I have between 10 and 15 years to work until retirement (I am 52 yrs old). Right now, my contribution allocation is: S: 25 percent C: 25 percent L: 20 percent G: 30 percent The distribution is more diversified. What do you think? I don’t know what I am doing; therefore, I am just guessing. A. Your allocation is basically: 50 percent stocks, 20 percent bonds and 30 percent cash. This would generally be considered a moderately conservative allocation. Whether, or not, it’s right for you is impossible to say without more information and analysis, but it doesn’t appear to…