Q. I am going to retire within the next three months. I have done my homework but am torn about my TSP. I don’t know what is the biggest bang for my buck — roll over my TSP into another investment (not knowing which one yet) or to leave it where it is. Since this will be part of my retirement, I want to pay as little as possible in maintenance fees. My fear is that the new MyIRA could be looming over my TSP. I do not want to invest my hard-earned money into worthless government bonds. It is…
Browsing: retirement
Q. I’ve read articles that are beginning to convince me that the TSP L funds are too conservative when the L fund “year” is based on the nearest year of retirement. It has been suggested that one should choose an L fund based on estimated longevity. Essentially, select an L fund by adding 20 or 30 years to your planned year of retirement, depending on your health, family history, etc. I am presently in L2020 and plan to retire in late 2018. Maybe I should be in L2040 or L2050. What are your thoughts on this? A. I know that…
Q. Can you draw a retirement benefit after you have withdrawn your funds from your TSP account? A. Yes.
Q. My wife retires in January from federal service. She had CSRS Offset. She is receiving her annuity, but did she contribute to FERS while in CSRS offset? And if she did, does she now have stocks in FERS that she can move into her mutual fund? A. She did not contribute to FERS if she was not covered by FERS. If you’re asking if she contributed to the Thrift Savings Plan, that’s a question she will have to answer. If she did, then she has money that is hers to do with as she pleases, within the rules.
Q. I’m in the FERS retirement plan and will retire March 31 from the Defense Department. At the time of retirement, I will have more than $300,000 in my 401k. I have two multiple-part questions: 1. Can I decide how much I want to take in monthly withdrawals and, if so, do I pay the 20 percent penalty monthly or do they take the 20 percent off the $300,000 before I even start getting my monthly payments? 2. If I leave my money in the TSP, do they continue to invest my money, and will I continue to earn interest…
Q. Upon retirement, can I elect to take a full withdrawal in the form of monthly payments, and then at some later date choose to take a one-time lump-sum withdrawal? For instance, three years after retiring, can I choose to remove $50,000 if I have never taken a lump-sum amount. A. Only if the lump-sum is the entire balance remaining in your account.
Q. If I’m still working at 70-1/2, do I have to start drawing my TSP, or can I wait until I retire at 72 or 73? A. You may wait until you retire. Your first RMD payment is due by April 1 of the year following the calendar year in which you reach age 70-1/2 or retire, whichever is later.
Q. I am federal employee who transferred from CSRS to FERS in October 1998, and I have 37 years of federal service at age 66. Planning retirement within the next year, and I would like to ask your opinion about my TSP allocation which is G Fund at 35 percent, F Fund at 10 percent, C Fund at 35 percent, S Fund at 8 percent and I Fund at 12 percent. Is this an allocation to keep when I retire?
Q. My job will end and I plan to retire Dec. 28. I am eligible for discontinued service retirement. At the time I submit my paperwork (approximately August/September of this year), I also plan to submit my request to withdraw a lump sum out of TSP and then set up monthly withdrawals. I will be one month short of my MRA which under Discontinued Service Retirement is not an issue except when I will be eligible to supplement all of this retirement income – FERS annuity/TSP withdrawals – with the special retirement supplement. Not a big deal … I can…
Q. I am 62 and a FERS employee. Can I retire with my FERS annuity and TSP and wait until my full retirement age of 66? I do not plan to work after I leave. A. Yes.