Q. Are there any advantages and does it make sense to transfer my wife’s 403(b) account into my Thrift Savings Plan account before I retire? I am planning to retire in 2015 at age 55 with 33 years of service (CSRS Offset). Will TSP even allow a spouse’s account to be transferred into the TSP? She will be retiring in 2014. She is not federally employed. A. It makes sense, and there would probably be advantages to doing this. But, alas, it’s not allowed.
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Q. I am active-duty military and am about to open a TSP account in January. From everything that I’ve read, I understand that I cannot transfer funds from my Roth IRA to my TSP account, but I do not understand why. I Can someone explain to me why this is the case and who made this rule? A. I can’t tell you why it’s the law, but it is the law.
Q. I am 65 years old and retired from government service in March. I have about $ 400,000 in my Thrift Savings Plan account, with over $150,000 in G Fund. (For the record, I also hold about $70,000 in the F Fund, $90,000 in the C Fund, $50,000 in the S Fund and $40,000 in the I Fund.) I am considering transferring $40,000 from the G Fund to L2020 to make my TSP portfolio a bit less conservative and also as a reflection of long-term price expectations on the bond market. Do you consider this a wise move? If so,…
Q. I am 58½ and a federal employee. Can I take all or part of my Thrift Savings Plan and move it to a self-directed IRA? Or do I have to wait until I am 59½? How much tax will I have to pay on this? A. You may not take an in-service withdrawal for rollover to an IRA until you reach age 59½.
Q. I have a variable annuity (mutual fund) with Western Reserve Life Assurance and it has been doing terribly for many years. I put $10,000 in it in 2001, and it’s only valued at $14, 500 now, 12 years later! My Thrift Savings Plan account is doing much better, and I would love to transfer or roll over this money into my TSP account. Can it be done, should I, and, if so, how? A. It may only be done if: 1. The annuity is an IRA or other Qualified Retirement Account; and 2. All of the money it contains…
Q. My co-worker told me she moved all of her funds to the G Fund. She has 16 years in service and is 45 years old. How will she know when it is time to move these funds back into more aggressive funds? I was giving this some thought for myself but did not know how to decide when would be the right time to move these funds back to more aggressive funds. I’m staying put for now since I don’t plan on taking anything out for another 10 years or more. A. You should ask her this question. Portfolio management is…
Q. I am 64 years old with 12 years of federal service. I plan to retire when I am 66. I have done well in the L funds except in 2008. I have 80 percent in the 2020 fund and 20 percent in the 2030 fund. Should I put all of this money in the G Fund until the current financial crisis is over? A. How you manage your account should depend upon your goals and circumstances, as well as a plan for future decision making. In general, market timing adds more risk to investment management than it avoids. It’s not part of my…
Q. Should I move everything to the G Fund now that we are shut down and there is the possibility that the government could run out of money within the next few weeks, forcing an unprecedented default? A. That’s like telling me you’re driving and asking if you should hit the brakes! I don’t know where you’re going, when you need to be there, what you’re driving or how much gas you have in the tank. The person responsible for delivering you to your destination on time must make that decision based on their assessment of the situation and their…
Q. I am 70 years old and still employed by the federal government. When I am 70½, I understand I must take a required minimum distribution from my traditional IRA/401s, but not clear if this applies to my Thrift Savings Plan account. Can you please tell me what the rules are for those who are 70 and over but still working for the government insofar as taking a required distribution from my TSP account? Can I wait until I retire from government? A. You may wait until you retire. You may also be able to transfer your IRA/401k balances into the TSP…
Q. Do you feel it would be wise to transfer my Thrift Savings Plan funds from the L2030 to the G Fund during this government shutdown? Isn’t money in the G Fund more secure, while the L2030 is prone fluctuations in the market? Is the market likely to take a big hit during the shutdown? My balance is $109,000, all in the L2030, and I still have about 20 years until retirement but may not stay federal the whole time. A. If you want to try to time the market, you’re on your own. The safest and smartest thing to do is to…