Q. I will be retiring very soon. Can I withdraw some of the money in the Thrift Savings Plan and leave the rest there to buy an annuity later when the interest rate is better? A. Yes.
Browsing: retirement
Q. In 2008, when the market crashed, I put a lot of my G and C funds into the S and I. The balance was around $107,000 at the time. It’s now 2013 and my balance today is $270,000 as the share prices for the S and I have more than doubled. The S Fund went from $11 a share to $26 a share. The I Fund went from $12 a share to $25 a share. When is a good time to move all of the S and I back into the G or C funds so that I do not…
Q. I will retire April 30 under FERS (law enforcement agent; I will be 66½ years old) and have been exploring options available regarding my Thrift Savings Plan account. I read with interest your Feb. 4 Federal Times article “Don’t overlook TSP for lowest-cost investment” but have the following questions concerning what happens to my TSP account funds if I predecease my wife/heirs before or after the required minimum distribution takes effect. As the annuitant, upon reaching 70½, I would have 10 years to draw down my TSP funds. What happens if I predecease my wife/heirs during this time frame? It…
Q. My husband will be retiring in June 2014. He will turn 50 in March 2014. Can we still contribute the full $17,500 plus $5,500 catch-up (I realize next year contribution limits may increase) even if he is only in for half a year? A. Yes, as long as his pay will support the deferrals. The limits are not adjusted for partial years.
Q. I have a general purpose loan and am planning to retire soon. If I choose not to repay the loan and take a tax distribution, will I still be entitled to make one partial withdrawal after retirement? Or will the unpaid balance of the loan be considered my one-time partial withdrawal? A. The unpaid loan does not count as your partial withdrawal.
Q. I am thinking of retiring soon and am considering taking a one-time post-retirement withdrawal from my Thrift Savings Plan to cover some debts so that I can live on my annuity. When requesting such a withdrawal, do you have to be retired both on the day it is requested and the day the money is disbursed, or can it be requested a few weeks before my last day assuming it will take some time to process and so I would not get the money until after I am already in retired status? I realize that we are probably only…
Q. I retired Dec. 29 at the age of 70 years and five months. I plan to take my Thrift Savings Plan money out, according to the Internal Revenue Service required minimum distribution table, which I understand I must begin no later than April 1, 2014, the year after the year I turn 70½. However, I may decide to take my one partial withdrawal, as well, and at the latest possible time. I’m pretty sure I read that I must make that withdrawal option effective by Dec. 31, 2013, the year I turn 70½, but now I can’t come up with…
Q. You received a question asking if one could transfer money from a Simplified Employee Pension IRA to the Thrift Savings Plan after retirement and you said “yes.” Is the answer the same for making the transfer before retirement? A. Yes.
Q. I will be retiring from the military at age 66 in June. I only have about $40,000 in my Thrift Savings Plan account and would like a lump-sum withdrawal. How can you figure out how much will be taken out of that amount in taxes? A. The information you’re looking for is here https://www.tsp.gov/PDF/formspubs/tsp-536.pdf on Page 3.
Q. I did a direct rollover from the California Public Employees Retirement System (a tax-deferred retirement) into the Thrift Savings Program. I have received a Form 1099 from CALPERS. I do not know why CALPERS would send me a 1099 as the monies went directly from one tax-deferred account into another. Do I have to declare the CALPERS monies, even though they went directly from one tax-deferred account to another? If I have to pay taxes on these monies, wouldn’t that make my contribution to TSP ineligible? If I have to pay taxes on this direct rollover, wouldn’t that mean I would,…