Q. I am a FERS employee retiring on Jan. 12, 2013. Since 2012 has 27 pay periods, does a contribution to my TSP for the pay period ending Jan. 12, 2013 count as a contribution to the 2012 calendar year or the 2013 calendar year? A. Since at least part of the contribution was based on earnings for 2013 and the pay and payment will be processed in 2013, it should count toward the 2013 limit, but you’ll need to check with your payroll office to be sure.
Q. What is the maximum Roth IRA contribution for 2010 once I have reached my 2010 TSP contribution limit? A. The maximum contribution for 2010 is $5,000 If you are under age 50, and $6,000 if you are age 50 or older. Your contribution may be further limited, however, according to your income and marital status.
Q. I have the lifecycle funds 2030 and 2040, and also the I and S funds. I distribute 25 percent of my account to all four. I also am putting money in them and it, too, is divided into all four of them. I want to know which is the best one to invest in. I am in the Army and I won’t retire for another 10 years or so? A. Without the proper understanding of your circumstances and analysis, it is impossible to give you good advice. The TSP suggests that you select the appropriate L Fund and invest…
Q. I am a clerk with almost 28 years’ service in the Postal Service and am 60 years old. If I decide to retire this year, can I choose a monthly allotment from my TSP and then when I am 62, change the amount of that allotment from when I retired at 60? Or am I locked in to that amount? A. You may change the amount of the payment once each year in January.
Q. I am a 48 year old male. I am a letter carrier for USPS. Due to unfortunate circumstances, I will be applying for Social Security disability and disability retirement from USPS. Here’s the thing. I have had two previous surgeries on my spine, both covered by worker’s compensation. Right now I am using all my sick leave until worker’s compensation receives all of the information it needs. Is there a separate retirement through OWCP or do I need to file for disability through the Post Office. I am thinking of separating from the Postal Service because of my financial…
Q. When I use the TSP website’s Monthly Payment Calculator to determine how long my payments will last at an amount selected, it asks what annual interest you expect to receive. I plan on leaving all my money in the G Fund. What rate should I expect? A. You’ve found the flaw in the calculator that makes it unreliable – pretty much useless in my opinion. Since its inception the G Fund has returned as much as around 9 percent in a year, and as little as 2.81 percent in 2010. If you’re not exercising a rigorous monitoring and management…
Q. Right now I am allowed to contribute $21,500 annually ($16,500 normal plus $5,000 over 50 catch-up) to my government-run TSP. I am also allowed to contribute $6,000 annually ($5,000 normal plus $1,000 over 50 catch-up) to my civilian-run Roth. I am told that when the government Roth option is established I will still be limited to $21,500 total in the government-run accounts however I allocate it? Is this true — it would make more sense if the ceiling stayed the same to TSP, but I could only do a $6,000 for Roths no matter if it was government or…
Q. My husband is retired and has a fairly decent sum in the Thrift Savings Plan. He keeps talking about taking it out and investing it in mutual funds, etc. Is this smart or would it be better to leave it where it is? A. It would be better to leave it where it is! Lower costs, efficiently diversified, easy to manage, the G Fund. There’s no better place to invest for retirement income.
Q. My question on keeping my money in my TSP when I retire from the Post Office was answered (yes, I can keep it in until age 70 1/2) Now for the next question: If I decide to keep it in the TSP, can I add to it after I retire? I have heard that you can’t, please clarify this. If the answer is no, what would be the advantage of keeping it in? If the answer is yes, how would you do this, automatic from retirement payments? A. The only way to contribute to your TSP account after you…
Q. Thank you very much for allowing us the opportunity to “ask the experts” through your forum. It can be difficult to get a correct answer at times from the Web. I am an air traffic controller with 30 years government service, and am eligible to retire now at 50 years of age. I currently have a TSP loan with a $2,900 balance outstanding. If I retired now, would I be able to withdraw my TSP account as a lump-sum payment with this outstanding loan balance? Or would I first be required to pay off the $2,900 loan before TSP would…