Browsing: annuity

Q: I am close to retirement in the Civil Service Retirement System and will transfer my Thrift Savings Plan investments from the C and S Funds to the G Fund to be safe. My question is in the transfer of funds: Is it the amount of shares that is transferred from one fund to another, or is the value of the fund used to purchase shares in another fund? For example: the S Fund with 2,000 shares at $19 a share is worth $38,000. The G Fund is worth $13.50 a share. Will the 2,000 shares transferred to the G…

Q: My divorce Judgment and Decree of 2004 awarded me porrata share of FERS employee annuity, Thrift Savings Plan and Former Spouse Survivor Annuity. I remarried before age 55. My former spouse and I were married 21 3/4 years. Will I be eligible for any of these benefits? A: You should consult an attorney for the answer.

Q: I am planning to retire in the next couple of years. I will be approximately 53 years old at retirement, and I am trying to make sure that I know all the Thrift Savings Plan regulations. As I understand it, as long as a TSP participant who retires or separates from service turns 55 in the same calendar year of retirement or separation, he can make penalty-free withdrawals any time after his 55th birthday. I also understand that TSP participants who are not eligible for regular penalty-free TSP withdrawals because they retired or separated from federal service before the…

Q. I took an early retirement and receive a monthly annuity check from the CSRS. I am currently 54 years old. Can I roll over the taxable amount of the annuity into an IRA to avoid paying the tax on this money until a later year? A. No.

Q. The current annuity provider for our TSP balance is MetLife. If Metlife goes into bankruptcy, what will happen to those people who have purchased an annuity from Metlife? If there is a chance that I could lose my annuity because of this company going under, what would you suggest I do with my TSP balance when i do retire? A. Your annuity might be paid in full or in part or not at all. It depends upon what happens. Your annuity could be paid out of available funds even in the event of bankruptcy. Your annuity could be sold…

Q: I have attempted to get answers on withdrawing my annuity but I am generally referred to the TSP page. Unfortunately, it doesn’t really answer my specific question. Can I purchase an annuity with part of my TSP and leave the balance in my TSP until I am 70½ and then start taking out monthly payments? A: Yes, as long as you haven’t already used your one-time partial withdrawal allowance at the time you use it to buy the annuity.

Q: I’m retirement eligible and in the Federal Employees Retirement System. I’m 60 years old and, after having paid for my military years, I’m two months away from 40 years of service. Does my Thrift Savings Plan account continue to draw interest as I receive my annuities? A: Your TSP account continues to produce the returns that accrue to the funds in which it is invested.

Q: What are the options of drawing out money from my Thrift Savings Plan when I retire? Can I draw monthly payments without buying an annuity and leave the majority invested? A: You have a number of options for withdrawing the money, including partial and full withdrawals. The details are explained in the materials available here. You may elect monthly withdrawals, which are a form of full withdrawal, without buying an annuity, and continue to invest the remaining account value as you choose.

Q: I retired in March 2008 (civilian with DODDS under FERS). I need to take an RMD this year as I am 70.5 years old in December 2010. I received the Form TSP-70. I am a bit disappointed that the government has the option of taking an annuity on the form ( I don’t think they even mention the annuity is with MetLife Insurance) without telling you in a brochure (from MetLife, maybe) how much MetLife’s administrative fee, surrender charges, and other pertinent costs are. Is there a good non-biased site to go to to determine which is better (depending on circumstances), TSP…

Q: If I purchase an annuity from MetLife with my Thrift Savings Plan funds and the company goes bankrupt, will the government back my money somehow? With the way financial institutions and large corporations are getting into financial dire straits, it just doesn’t seem safe to turn it over to anyone without some kind of government backing or guarantee. A: There are state-run solvency pools which back up the guarantees of insurance companies, but their terms vary by state, so you should check with your state’s insurance regulators for details. It’s also possible that, if MetLife went bankrupt, your annuity…

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