Q. Will retirees be able to roll over funds from the Roth TSP option into a Roth IRA, even if we exceed the income limits for a Roth IRA? A. Yes, you will.
Browsing: retirement
Q. I worked for DoDDS schools from 1987 to 1990. At that time, vesting was five years with FERS. When I resigned, I believe I had to forfeit my retirement and was made to withdraw my Thrift Savings Plan. Would this have been correct for that time period with FERS? And DoDDS? I came back to work for DoDEA in January 2001. I called to make certain that I was going to get credit for those three years. I wanted to redeposit my TSP money but was not allowed to, and was told there was no provision for repayment. It…
Q. I have worked for the Postal Service for 24 years as a postmaster. I would be able to take an early out if it was offered. I want to borrow on my TSP for a residential loan. If I make a 10-year loan from my part of the TSP next month and then the Postal Service offers an early-out retirement and I take it, will I have to continue making the payments? Also, when I do retire, will I be able to pull out all my savings in TSP? A. If you retire, your outstanding TSP loan will become…
Q. I am planning on retiring within a year, at the age of 55. When will I be able to withdraw funds from the TPS account without a tax penalty. My understanding is at any age once retired but I would like to make sure I am correct on this. A. As long as you retire from federal service during or after the calendar year in which you reach age 55, your subsequent TSP withdrawals will not be subject to the early withdrawal penalty.
Q. I’m recently retired from the federal government. I have currently made no changes to my TSP, leaving everything in my account. Is it generally a good idea to leave your funds in the TSP or should I consider rolling it over to an IRA? Also, what is your opinion of a variable annuity? A. It is generally better to leave your money in the TSP as long as possible. It is the best retirement investment environment there is. In my experience, variable annuities are one of the WORST investment propositions you’ll find. Avoid them unless a trustworthy (competent and…
Q. I read your article in the Federal Times and found it very enlightening and maybe an answer to my money concern. I have approximately $50,000.00 in a Funds account and I have approximately $92,000.00 in TSP. I have 32 years in the federal government under CSRS plus about 11 months’ sick leave and 240 hours annual leave. I am interested in retiring from the government and working for private industry in a less paying, less stressful job. I am interested in finding out from you if it would benefit my wife and I financially to purchase or rent a…
Q. Is it possible to look at the historical rates of return of the various Thrift Savings Plan funds and predict an allocation for a nominal return of 6 percent, or am I better off looking into the Life Cycle funds and trying to predict the return from there? (Past performance of the L Fund income just falls short of 6 percent). My goal is to make an average of 6 percent per year on my current TSP balance to reach my retirement goal. A. Yes, it’s possible. But you shouldn’t rely on a prediction based on so little data.…
Q. I am 59 years old, and will be 60 in July. I will have 42 years of government service in October, at which time I plan to retire. I am weighing my options. If my agency offers a buyout, should I leave in the spring or stay for my 80 percent? I am not sure how much I’ll be losing, but I am so close now. I’m just not sure what to do. I certainly could use the $25,000 (minus approximately $8,000 in taxes). Please give me your ideas. A. You are asking for specific analysis and advice, which I…
Q. I will be retiring this year under the Civil Service Retirement System at age 56 with 33.75 years of service. I read an article on the Voluntary Contribution Program. Can I roll my Thrift Savings Program into the VCP prior to retirement and then roll it into an Individual Retirement Account to save being taxed? A. No. The VCP only accepts after-tax contributions. You may roll your VCP balance into an IRA or Roth IRA, however.
Q. Can I roll my Thrift Savings Plan over to an Individual Retirement Account when I retire? I have at least four more years to go. I will be 57 with 30 years in. I am under the Federal Employees Retirement System. I can’t believe I can’t touch my money unless I am 59.5. Why is it taking so long to get our retirement annuity? I will retire as a GS-6 Step 9. A. Yes, you may roll your TSP money into an IRA after you retire.