Browsing: monthly

Q. When retiring, can I take a large sum of my Thrift Savings Plan out before starting my monthly allotment with the remaining amount? A. Yes, as long as you haven’t taken an age-based, in-service withdrawal before you retire.

Q. How often am I able to change my allotment amount being drawn from my Thrift Savings Plan account yearly monthly, etc., while retired? Can I still move my money between funds after I start receiving the allotment? A. If you’re referring to automatic monthly distributions, the amount can be changed once each year, effective in January. You may, and are responsible to, continue to manage your account for as long as it continues.

Q. I am a GS-04, Step 10. My account balance as of Dec. 31 would provide me with a lifetime Thrift Savings Plan monthly amount of $451. As of this time, I contribute $300 every pay period to TSP. Let’s say my goal is to have a lifetime TSP monthly amount of $1,000. By how much would I have to increase my TSP amount each pay period? I am 52 years old. I am under FERS. If I was offered an early retirement, should I take it? Or should take the chance of getting furloughed for an uncertain amount of time? A. Unfortunately,…

Q. I am an air traffic controller who is retiring in two months at age 48. I have an outstanding Thrift Savings Plan loan for about $9,000. What happens if I don’t pay this off before I retire? Do I pay the 10 percent penalty, along with it being shown as income? Does this affect my monthly withdrawal from TSP using the 72(t) rule?  Also, can I take a one-time partial lump-sum withdrawal and pay the 10 percent penalty without it affecting my monthly withdrawal? A. If you don’t repay the loan within the grace period after you retire, it will…

Q. I retired Dec. 31. I plan to use the 10-year monthly annuity option. Does the principal in my account continue to be in play in the market? Will I benefit or suffer from market volatility? A. If you use your Thrift Savings Plan money to purchase an annuity, you give up ownership of the principal in exchange for the guaranteed payments. The principal will be removed from your account to pay for the annuity.

Q. I’m 64 years old, planning to retire at the end of March, and after I retire, I’m hoping to take $20,000 off the top of my Thrift Savings Plan. Am I able to leave the rest for a later date? And what options do I have when I decide to tap into the remaining balance? Do I have to take the rest out in a lump sum or can I take it out in increments, like an annuity? A. You may take one lump-sum withdrawal. After that, your only option is a full withdrawal, either as a lump sum…

Q. I have tried to understand the issue of the 70½ age thing and what should be done with my Thrift Savings Plan. Do I need to roll it over, or can I keep it where it is and have the minimum withdrawal done each year? Also, can I withdraw $10,000 at that time? I did a one-time withdrawal in 2008. Does this mean I cannot make another withdrawal when I am 70½? A. You may leave your money in the TSP for life, but you must take Required Minimum Distributions each year if you are no longer working and have…

Q. I’m going to retire in May, and I’m considering withdrawing my Thrift Savings Plan in equal monthly payments. Based on the TSP website calculator, my $190,000 will give me 288 payments using a 1.5 percent interest rate. If I die after, say, 150 payments, what are the options open to my wife? A. A beneficiary participant account will be established for your spouse beneficiary, and she may then manage it or withdraw from it as she chooses, subject to the applicable TSP and Internal Revenue Service rules.

Q. I am retiring from the Army after 22 years of service and I am 45 yrs. old. Can I start withdrawing from the Thrift Savings Plan and avoid the early withdrawal penalty by taking a series of Substantially Equal Periodic Payments? How does that work? My life expectancy is 37.7 more years, according to the Internal Revenue Service, so is that the number of years my funds can be distributed? If so, do I then divide what I saved by 37.7 and again divide by 12 to see what my monthly payments would be? A. You may avoid the…