Browsing: fund transfers

Q. What would be the advantage or disadvantage to a retiree of transferring their TSP to a variable and/or fixed annuity? What are the issues to look for, if any? A. The main disadvantage of variable and deferred annuities is their high cost. The main disadvantage of a fixed immediate annuity, in the current environment, is a low payout rate. I don’t know a universal advantage to a variable or deferred annuity. The advantage of an immediate fixed annuity is guaranteed income for life.

Q. I invest the maximum in my Thrift Savings Plan L2030 account. What other monies can I move into my TSP account — e.g., mature CDs, ITF money from a deceased parent, bond dividends, etc.? A. You may transfer previously untaxed retirement account (IRA, 401(k), 403(b), etc.) balances into the TSP.

Q. I am planning to retire in December 2013 with 41 years of government service. I am covered by CSRS and have been participating in the Thrift Savings Plan. I have several small IRAs for which I am charged $40 a year. I was going to switch this money over to a building and loan association that advertises it does not charge an annual fee. Would I be better to put these funds in my TSP? Would that result in a taxable event? A. Generally, the TSP should be your first choice for retirement investment. Transferring your IRA accounts to your…

Q. I have some money in a traditional Individual Retirement Account that is doing nothing for me, and I was wondering if I could transfer it to my Thrift Savings Plan account. I invested roughly $44,000 in June 2008 and, as of March 30, I have a grand total of $46,190 in the account. I am also paying an annual fee of $344 for this IRA. In the same time frame, I made over $30,000 in my TSP account. I realize I will lose about $2,500 in the transfer, but I feel I can make that back up in no…

Q. I am currently deployed and trying to read up on the upcoming Thrift Savings Plan Roth Individual Retirement Account. Will I be able to do an interfund transfer of my existing balance, as well as my contribution allocation, in the TSP from my other funds into the Roth IRA TSP? If so, will I be able to do so online, as I can with the other allocations/balances? A. We’ll find out exactly how the program works when the details are announced.

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…