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: rollover
Q: I understand that when an federal employee, through a rollover, transfers funds from an individual retirement account to the Thrift Savings Plan that the money transferred can only be pre-tax. My wife has both pre-tax and post-tax contributions in the same IRA. The IRA has grown for 20-plus years, so a lot of its value has had no tax has paid on it. Most of what I have read on the issue seems to indicate that because the IRA has some after-tax money in it, none of the money can be transferred into the TSP even though the amount…
Q. I am a Civil Service Retirement System employee, hired in 1979 and contemplating retiring April 3, 2013. 1. I will be subject to the windfall elimination provision because I earned 40 credits of Social Security eligibility prior to my federal employment. But my spouse is also eligible for Social Security and started receiving Social Security benefits of more than $1,900 a month (gross) starting last month (January 2012), whereas the Social Security Administration has estimated that my Social Security benefits would be approximately $385 a month (gross). Would I be eligible for spousal Social Security benefits? 2. A financial planner…
Q. I’m an Air National Guard military technician, and I’ll be retiring this July at my minimum retirement age of 56. I plan on making monthly withdrawals from my Federal Employees Retirement System Thrift Savings Plan at that time. I know I won’t have to pay a penalty on these FERS TSP withdrawals, but do I have to wait until the age of 59½ to start withdrawals without paying the penalty? Can I roll my military TSP into my FERS TSP when I retire? A. You may combine your military and civilian TSP accounts. Visit www.tsp.gov and search for form…
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.
Q. I am currently employed with 10 years service accrued in the Federal Employee Retirement System. If I were separated/left federal employment for the private sector, would I be allowed to roll over the entire contents of my 401(k) account (acquired via my new employment) into my Thrift Savings Plan? Similarly, if I were to retire from federal employment, would I be allowed to roll over the entire contents of any 401(k) account(s) (acquired as a result of any previous private-sector employment) into my TSP? A. As long as you maintain your TSP account, whether employed, separated or retired from federal…
Q. I retired in 2007 and am in the Civil Service Retirement System. Am I permitted to continue to contribute monthly to my Thrift Savings Program? May I roll over the entire contents of my Individual Retirement Account into TSP? Can I then make monthly contributions into TSP from my checking account? A. You may not contribute to the TSP after you retire, but you may transfer eligible IRA balances into the TSP at any time. To be eligible, the IRA must contain only pretax money.
Q. I am considering taking an early retirement offer. If I were to have another financial institution purchase an annuity that is offering a better interest rate than what MetLife is offering through the Thrift Savings Plan and do so directly so that it would not be deposited to a personal checking or savings account, would it be exempt from tax penalties because I am under 59½, even though it would be taxed as regular income through the payments from the annuity provider as it would if TSP purchased the annuity for me? A. Yes. You may roll TSP money…
Q. Will I be able to open a TSP Roth account and then roll my current Janus Roth IRA balance into it? How about after retirement? I have waited patiently for the promising TSP Roth, but it has been delayed time and again. Now it’s set for rollout in the second quarter of 2012. How nice: I’m planning to retire by the end of April, meaning that I may be ineligible for the TSP Roth if it is not offered by then. If the TSP Roth begins in May, June, or afterwards, am I out of luck? Since I plan…
Q: I must withdraw (roll over) my TSP account beginning Feb. 25. Can I withdraw the funds to refinance my home? Would this use of my funds result in a higher tax liability than if I rolled over the funds into an investment fund? A: All funds distributions from the TSP are taxable unless they are considered a loan, or rolled over to another tax-deferred retirement account, such as an IRA. It doesn’t matter what you use the funds for. A Required Minimum Distribution may not be rolled over and must be included in your taxable income for the year.…