Q: I am a former federal employee who was separated after two years of service. I still have my TSP account and enjoyed how user-friendly it is. Is it possible for me to continue making contributions to my TSP account even though I am now working in the private sector? If so, how can I set this up? A: You can’t make regular contributions to the TSP after you separate from federal service, but you can transfer pre-tax IRA and 401k money into the TSP. Contribute to your employer’s 401k plan and then transfer it into the TSP when you…
Browsing: IRA
Q: I am considering retiring at the end of 2011. I have all my thrift in the C fund. I don’t plan to use my thrift savings to live on during retirement or to withdraw it. What is the best option for me to do with my thrift, leave in? Withdraw it and place in an IRA? What do you advise? A: The TSP is the best investment vehicle you’re likely to find, anywhere. Leave your money there as long as you can.
Q: I retired in 2008 and I am collecting my annuity from CSRS. I made a one-time withdrawal from my thrift in 2010. Can I now transfer my IRA into my TSP or am I too late? A: You may transfer money into your account.
Q: Thank you for your previous answer regarding my TSP account and when I must start taking withdrawals. Is it possible to rollover my total TSP account to my IRA with my local credit union and start taking taxable withdrawal that way? Would the withdrawal of payments still be the same? A: After you retire, it is possible to rollover your TSP balance to an IRA, but this will not change your minimum distribution requirements. If you want the smallest distribution possible, you can leave your money in the TSP and request monthly distributions based on your life expectancy. If…
Q: I am 65 and plan to retire soon. I would like to stay in the TSP as a FERS retiree. However, the inability to withdraw money while taking a monthly distribution has me considering transferring to an IRA. Do you see any possibility that the TSP will change the inability to withdraw money as necessary while having monthly distributions? A: Of course it’s possible. If you decide to roll over your balance, you would be smart to try to duplicate, as closely as possible, the advantages of the TSP in your IRA account. That means using low-cost index funds…
Q: I am a retired CSRS post office employee. I am 65 1/2 years old and have left my funds in TSP. How long before I have to start withdrawing the funds? I plan to rollover my deposit to my IRA with my postal credit union. A: You’ll have to start withdrawing funds by April 1 of the year following the year in which you reach age 70 1/2. You can’t rollover your Required Minimum Distribution (RMD) to an IRA, however, since that would defeat the purpose of the RMD, which is to collect taxes.
Q: Can money in my Thrift Savings Plan account be rolled over into a Roth IRA, and if yes, what are the rules and when can it be done? A: Yes, certain TSP distributions are eligible to be transferred or rolled over to a Roth IRA. The TSP notice available here will introduce you the rules and limitations.
Q: I am under the Federal Employees Retirement System and have money in the Thrift Savings Plan. I returned to government service after 16 years in the private sector (I was under the Civil Service Retirement System from 1975 to 1987 but was placed in FERS in 2004 when I returned). I have retirement accounts outside TSP, but I find TSP to be easy to manage. I have considered transferring my other 401(k) accounts into TSP, but I have also heard concerns that Congress may target TSP as a source of “revenue.” I will be considering retirement in the next…
Q: In a Dec. 13 blog post, you answered the following question: “I am a federal firefighter under CSRS Special Retirement due to retire in November 2011 at age 50. At what age will I be able to collect on my TSP retirement?” You said that the writer would be subject to the early withdrawal penalty until age 59 1/2 unless the withdrawal was rolled over, used to buy a life annuity or met one of the other “specific exceptions to the rule.” I’m an 1811-series federal employee, age 52, and will be retiring in 2011. I’ve read that I…
Q: I read the latest article from Mike Miles in Federal Times and I have a question: I am a Federal Employees Retirement Service (law enforcement officer) employee, and I max out my Thrift Savings Plan contributions. Can I contribute to an outside-brokerage individual retirement account ( I meet the Roth requirements) and if so, what is the cap for that yearly? A: Yes, you may contribute to a traditional IRA, and the limit under current law is $5,000 if you’re under age 50; $6,000 if you’re 50 or older. Some or all of your contribution may be taxable, depending…