Q. I work as a CSRS federal employee, 60 years old with 35 years of federal service. There is $200,000 in pretax money saved in my Thrift Savings Plan account. I’m interested in taking advantage of the “one-time” age-based in-service withdrawal option. Can I choose any amount to withdraw? For example, my plan is to take out $100,000 and roll (100 percent) directly into my private Individual Retirement Account and invest in stocks. Is it also correct to assume that I can move money from my IRA pretax account into my TSP account (any time and any amount) as long…
Browsing: CSRS
Q. I will be retiring (CSRS) at the end of this year. I understand there are several options available with my account. However, I haven’t been able to find any clear/accurate information. Can I take it out as a lump sum? (Is there a negative to this?) As a retiree, can I leave it in place? (One article seemed to state that if a person does this, they receive a small monthly check of some sort.) A. You’ll find the information you need here: https://www.tsp.gov/planparticipation/withdrawals/accountOptions.shtml.
Q. I am a federal employee with more than 34 years of service under CSRS. I am planning on retiring Jan. 3, 2013. The amounts I earn in pay period 26 (Dec. 16-29, 2012) and pay period 27 (Dec. 30, 2012-Jan. 12, 2013) will not be paid to me until after Jan. 1, 2013, and will therefore be shown as taxable income on my 2013 W-2. Can I designate 100 percent of my net earnings for those two pay periods to my Thrift Savings Plan to reduce my taxable income for 2013 and maximize my TSP account? A. You may defer…
Q. I am a Defense Department employee under CSRS, and am eligible to retire in two years at age 55. I have been making contributions to the Voluntary Contributions Program for many years. Under VC regulations, upon withdrawing the account (among other options), I can roll over the interest portion of my VC balance direct to my Thrift Savings Program, and receive my contributions portion back as a cash refund, from the Office of Personnel Management. On the upcoming Roth TSP, will there be an option to roll my VC portion, direct to the Roth TSP, in addition to rolling the…
Q. I am a Civil Service Retirement System employee, hired in 1979 and contemplating retiring April 3, 2013. 1. I will be subject to the windfall elimination provision because I earned 40 credits of Social Security eligibility prior to my federal employment. But my spouse is also eligible for Social Security and started receiving Social Security benefits of more than $1,900 a month (gross) starting last month (January 2012), whereas the Social Security Administration has estimated that my Social Security benefits would be approximately $385 a month (gross). Would I be eligible for spousal Social Security benefits? 2. A financial planner…
Q. I will be retiring this year under the Civil Service Retirement System at age 56 with 33.75 years of service. I read an article on the Voluntary Contribution Program. Can I roll my Thrift Savings Program into the VCP prior to retirement and then roll it into an Individual Retirement Account to save being taxed? A. No. The VCP only accepts after-tax contributions. You may roll your VCP balance into an IRA or Roth IRA, however.
Q. I have 26 years of Defense Department service with a target of six years to go before retiring. The Federal Employees Retirement System isn’t doing very well with the Thrift Savings Plan Offset. Because of a failing market, I have missed my TSP target by a large sum. Does the government have any plans to assist the FERS employees looking to retire with a failed TSP? Most FERS employees are having to work past their target because they can’t afford to retire. The Civil Service Retirement System is much better. Combining FERS, TSP and Social Security, we still fall short compared…
Q. I retired in 2007 and am in the Civil Service Retirement System. Am I permitted to continue to contribute monthly to my Thrift Savings Program? May I roll over the entire contents of my Individual Retirement Account into TSP? Can I then make monthly contributions into TSP from my checking account? A. You may not contribute to the TSP after you retire, but you may transfer eligible IRA balances into the TSP at any time. To be eligible, the IRA must contain only pretax money.
Q: If I can withdraw from my TSP if I retire in the year I turn 55 (CSRS) without the penalty, can I also roll over my TSP to a Roth IRA without the penalty? From what I have read, any rollover prior to 59 1/2 would trigger a penalty. Is there any special provision that allows the rollover at 55, like the early withdrawal for federal employees? Because I may be in a higher tax bracket later in my career, I would like to move it now, but not at the expense of the 10 percent penalty. A: If…
Q: I am a CSRS employee with 34 years of service. Should I take a VERA at the age of 53? What penalties will be imposed on my TSP? I would like to draw it out in one lump sum and invest it in an annuity recommended by my financial adviser. A: You will be subject to the early withdrawal penalty unless you roll over the withdrawal into an IRA. You may want to think carefully before following your “adviser’s” recommendation. I suspect that he/she is actually a salesperson who is compromising your interests in favor of their own! I…