Q. I am 60 years old and plan on working until I’m 66. Can I take a first-time homebuyer loan from my Thrift Savings Plan as a down payment? If so, what form would I fill out? Do you happen to know how long it takes to get the money? Would I have to pay it back to the fund? Is there a penalty? I would not be taking any other payments out at this time. A. You may take a loan from your TSP, which must be repaid, or it will be declared a taxable distribution. You’ll find the…
Browsing: in-service withdrawal
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…
Q: I’m currently contributing to the 2050L fund of the Thrift Savings Plan. Is it possible to transfer my TSP funds to a Roth individual retirement account without getting penalized? I don’t want to touch the money, I just want to invest in precious metals instead of Fortune 500 companies and small businesses. A: If you are age 59 1/2 or older, you may take one age-based in-service withdrawal from your TSP account. Check with a CPA (ideally, the one who will be preparing your tax return for the year) for advice on converting it to a Roth IRA.