Q. When I retire under FERS, can I get all of my Thrift Savings Plan monies, Social Security and my annuity? Can I roll over my TSP monies without paying 30 percent of the total to the Internal Revenue Service? If so, what amount of tax-deferred monies, once rolled over, can I take out monthly without a penalty or have to pay taxes? A. Mike: Once you retire, you may withdraw your TSP money. If you retire during or after the calendar year in which you reach age 55, your TSP withdrawals will be exempt from the early withdrawal penalty.…
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Q. I am a FERS employee, and I’m considering a June 1, 2013, retirement date. I will be 57 years old and have 29 years of service on that date. I understand that I would take a 5 percent reduction on my FERS pension for each year under age 62. Will I be eligible for the special retirement supplement? Can I take monthly withdrawals for my Thrift Savings Plan account without being liable for the early withdrawal penalty? A. Mike: If you retire during or after the calendar year in which you reach age 55, your TSP withdrawals will be…
Q. I am 55 years old and retiring from federal service in March. Once I retire, can I withdraw all the funds in my Thrift Savings Plan account? If so, will I have to pay a penalty for early withdrawal of my TSP account? A. You may withdraw your TSP assets after you retire. If you retire during or after the calendar year in which you reach age 55, your TSP withdrawals will be exempt from the early withdrawal penalty.
Q. I am retired (68 years old) under CSRS. We are thinking of refinancing our home and paying off the line of credit. If we include the settlement fees, we will be saving $5,474 per year, recouping our settlement fee within 1½ years. However, if we refinance without including the fees, we will be saving $5,916 per year. My husband wants to draw $8,000 from either his 401(k) (he is 68 also), or draw $4,000 from his 401(k) and my Thrift Savings Plan. I don’t want to touch these for a $42 a year savings. Are there drawbacks at our age to taking…
Q. I am in under FERS. If I retire after 30 years of federal service at age 58, can I start withdrawing my Thrift Savings Plan, or do I have to wait until I am 59½? I do not have any part of the TSP as a Roth. A. Under the circumstances you describe, you may begin withdrawals without penalty.
Q. I received a packet from my previous employer that I needed to cash out or roll over my funds to an IRA or another retirement fund. I’m 48 years old. Where can I put this fund without having to pay a broker or a financial adviser fee? Is there a fund that I can roll this into without upfront fees or an annual fee? A. The best place for this money is your Thrift Savings Plan account. You can use form TSP-60 to request the transfer.
Q. My wife is retiring Oct. 26. I hear that it is taking six or more months to finalize your retirement and receive your first retirement check. Can she begin receiving payments from her Thrift Savings Plan account as soon as she retires or does she have to wait until she receives her first retirement check and her retirement is finalized? She would like to start receiving monthly payments in January. A. As soon as her agency notifies TSP that she has separated from service, TSP will process her request for monthly payments.
Q. If I retire after 10 years of service, which would make my age 56.4, would I be able to start withdrawing from my Thrift Savings Plan without a penalty? If so, am I allowed to withdraw a larger amount per month and then lower it when I start getting my Social Security benefits at age 62? How often am I allowed to change the amount I withdraw per month? A. If you retire during or after the year in which you reach age 55, your TSP withdrawals will be exempt from the early withdrawal penalty. You may change the…
Q. If I agree to make Substantially Equal Periodic Payments available under Internal Revenue Service code section 72(t) from my TSP, may I do so before I retire and avoid the 10 percent penalty? If it matters, I am a federal law enforcement officer who will have 25 years of service before age 50. A. No, since you’re not allowed to initiate monthly payments before you retire. The 72(t)-compliant distributions will avoid the early withdrawal penalty whenever they are initiated, however.
Q. My husband and I are both federal employees. My husband is 30 and has 10½ years. He contributes to the G Fund and, from what I can tell from our leave and earnings statement, it is 5 percent. I am 28 and have three years. I also have a 5 percent contribution to G Fund per our LES. What fund do you recommend we contribute to? We would like to start now to ensure we have a decent retirement. Do you recommend us investing in the new Roth? A. You should contribute as much as you can afford to…