Q. My previous employer allowed post-tax contributions to the 401(k) plan after the maximum allowed pretax contributions had been reached. Can I transfer the post-tax contributions of my previous employer’s 401(k) plan to the Roth TSP? A. No.
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Q. I’m planning to retire Jan. 2 and would like your suggestions as to what to do with the $165,000 in my Thrift Savings Plan account. I thought about transferring the money from the TSP, buying an IRA and letting it remain there for a couple of years since do not think I will need the money at the present time. I am 63 years old and covered under CSRS. Any suggestions as to what to do with the money and the best company or companies to purchase an IRA would be greatly appreciated. A. The TSP is the best…
Q. Can a CD be transferred into the Thrift Savings Plan? A. No. Only cash can be transferred into the TSP.
Q. My wife and I are getting a divorce. We are both federal employees with Thrift Savings Plans. My plan greatly outvalues hers. In my state, she is entitled to half of the value of my retirement account, and vice versa. Since we are both on the TSP, can I just transfer her entitlement from my account to her TSP account without a tax penalty, as this would be of greater benefit to her? A. She may request that her share be transferred to her TSP account using the appropriate TSP form.
Q. My husband and I would like to participate in a fixed index annuity offered by a nongovernment company, but the information I gathered about Thrift Savings Plan transfers, withdrawals and annuities is confusing. It appears that if we want any type of annuity, we can only purchase if TSP does it for us, and the choices are extremely limited. Also, there seems to be no “non-hardship” type of distribution available before age 59½ that we can use to move our funds. Am I missing anything here, or are we just stuck with our limited options and no way to…
Q. I am 63 years old and still working. Is it possible to transfer IRA into the Thrift Savings Plan to consolidate? A. Yes, as long as doesn’t contain any after-tax money (usually from contributions that weren’t tax-deductible when you made them). Use Form TSP-60.
Q. I am 63 years old with 37 years in the Postal Service and still working. I plan to retire in two years. I have $250,000 in my Thrift Savings Plan. I have read about contributing 10 percent of my career earnings to the Voluntary Contribution Program, and then moving the VCP money back to Roth IRA to save the taxes. For example, if my 10 percent is $150,000, can I withdraw it from TSP and move it to VCP and not pay any taxes on my TSP withdrawal? A. No.
Q. I withdrew the bulk of my Thrift Savings Plan account a couple of years ago and rolled it over to an IRA, thinking I could get better earnings on my investment. It has not worked out that way. Can I put this money back into my TSP account? I have not yet retired and am still contributing 5 percent of my earnings to my TSP. A. As long as the IRA contains only untaxed money, you can and should transfer the money back into the TSP. Use Form TSP-60 to do this.
Q. My wife and I are FERS employees. We are both considering retiring early if offered Voluntary Early Retirement Authority at ages 50+/- (both with more than 25 years of service). With children still in the picture for some time, access and flexibility with our Thrift Savings Plan accounts are crucial to any plan. I would like to accomplish two things: 1). 72(t) withdrawals until 59½ in one account. 2). Flexibility to roll over funds currently in TSP into a Roth IRA held at another institution (from an IRA as I see no method to do that while the funds…
Q. I am considering retirement at 62 (FERS) but not collecting Social Security until my full retirement age of 66. I know that once you start withdrawing from your Thrift Savings Plan account, you must continue to make withdrawals each year. To bridge the time from 62 to 66, I’m thinking of taking funds from my IRA instead. If I start taking withdrawals at 62, can I stop taking withdrawals from my IRA at 66 when I start Social Security and then resume withdrawals at 70½? A. You’ve got the right idea, and it will work. You may start and…