Q: After I retire and begin to withdraw TSP, do my accounts still draw interest on the remaining balances in the various funds? A: Yes.
Browsing: retirement
Q: I plan to retire from the U.S. Postal Service on Dec. 31. Any word on the proposal to roll over terminal annual leave into the Thrift Savings Plan? A: Not that I’ve heard.
Q. I just want to be clear that if I choose to remain working (GS) until age 75, will my TSP account continue to be active? Then at what point must I make a TSP withdrawal decision? A. Following your retirement.
Q. I like the idea of receiving a monthly check for life, with a yearly raise and if I die first, my wife would keep on receiving those checks. However, I wish there was a way I could keep my principle and just be able to withdraw what I needed every month and reinvest the rest back into my principle. I would hopefully like to keep building my principle and be able to pass it on down to my children and even my grandkids. Does this make sense and is it a way I can do this? A. Yes. You may…
Q. I don’t think I was clear on my submitted question. I am not old enough to retire but may have to leave my job. I don’t need the money because I can live on my husband’s income. Should I leave my TSP account alone until I become of retirement age, or am I required to take it out or roll it over ? A. You may, and should consider, leaving your money in the TSP and managing it there until you need it or until you have to start withdrawing it sometime after you reach age 70 1/2. The…
Q: I retired from federal service on Jan. 3, 2008. With accumulated sick leave I had about 42 years of service. I was 67 years old when I retired. I had been investing in TSP on a regular basis. When I retired I left my funds in TSP. I will turn 70 on Sept. 12. Am I required to withdraw the funds when I turn 70? I have heard from a financial adviser group that former federal employees with TSP must move their funds into either a lump sum withdrawl or an annuity when they reach 70. Is this true?…
Q: I will be 59 in October 2010. I retired about four years ago under the old CSRS system and contributed to the TSP while I was employed as a federal civil servant with the Navy. What is the earliest age I can withdraw from the TSP without penalty? I see information on being required to withdraw by the age of 70 1/2 but nothing on the earliest age to withdraw. A: If you separated from federal service during or after the calendar year in which you reached age 55, you may withdraw your money now without penalty. Otherwise, you’ll…
Q: I am 57 years old and plan to retire in two years. I have basic Federal Employees Group Life Insurance plus two times optional coverage. My total annual premium is nearly $1,900 for roughly $400,000 of insurance. Equivalent coverage in the open market is considerably cheaper. Is there any advantage to retaining my FEGLI coverage as I approach retirement? A: The major benefit, assuming that you are insurable at more attractive rates on the retail market, is that if you retire with basic FEGLI coverage, you can, once you reach age 65, retain 25 percent of that coverage, at…
Q: I have always heard/read that to live at the same standard in retirement, you would need to have approximately 80 percent of your salary when you retire. Although I think I know the answer to my question, I would like to hear your response. My question is: Is it the annual gross pay minus my TSP contribution that I take home to live on, or my annual gross pay before I take out the TSP contribution that one would use for the 80 percent calculation? For example, I am over 50, so I take out the maximum $16,500 plus…
Q: Once retired from the federal government, how long can you leave money in a Thrift Savings Plan account without designating how it is to be allocated? A: You can leave your money in the TSP and direct it — or not, as you see fit — until the IRS Required Minimum Distribution rules kick in.