Q. I am making payments to buy back my military deposit, and I will also be making a redeposit of FERS funds. Can I transfer funds from the Thrift Savings Plan to military buyback and FERS? After all, these are both accounts for retirement and not money I’d be using now. A. This is not allowed since your TSP money is pretax and your deposits must be made with post-tax money.
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Q. I have money going into G, F and C funds. I recently changed my distribution to 65 percent and 35 percent for G and F funds, respectively. With C Fund losing money, how can I transfer my existing C Fund balance into the F Fund so I’ll stop losing money from my existing C Fund? I see the procedure to change distribution between the funds. I don’t see a procedure to transfer all of my existing balance from one particular fund into another fund. A. I’m a financial planner. This is a question for the Thrift Savings Plan’s website…
Q. I am making payments to buy back my military deposit and I will also be making a redeposit of FERS funds. Can I transfer funds from the Thrift Savings Plan to military buyback and FERS? After all, these are both accounts for retirement and not money I’d be using now. A. No.
Q. Does section 902 in HR 8 (American Taxpayer Relief Act of 2012), which states that “Amounts in applicable retirement plans may be transferred to designated Roth accounts without distribution,” apply to the Thrift Savings Plan? A. You may transfer amounts from other employer-sponsored Roth retirement plans into the TSP. This does not apply to Roth IRAs, however.
Q. Can traditional Thrift Savings Plan funds be transferred/rolled to Roth TSP funds after retirement, while paying taxes on the amount transferred? I’m trying to at least save the taxes on the five-year growth. A. You may not convert your traditional TSP funds to Roth TSP funds. I’d like to see the math that convinces you that this is a good idea in the first place.
Q. I am 66 years old and plan to retire in 2014, at which time I would transfer (convert) my Voluntary Contributions Program monies directly into a newly created Roth IRA. However, I have an existing (non-TSP) Traditional (substantial) IRA (never taxed), and know the Internal Revenue Service will aggregate my Traditional IRA balance for purposes of determining the taxability of this VCP-to-Roth conversion. If, prior to retirement, I (in 2013) transfer (direct rollover) my Traditional IRA into my existing Thrift Savings Plan account, will those monies now be considered 401(a), and therefore, making my subsequent VCP-to-Roth conversion occur with…
Q. I have both a civilian and military Thrift Savings Plan account because I was mobilized for part of 2011-12. Because I was in a combat zone, much of my income was tax exempt (CZTE). The military allowed me to contribute that tax-exempt income into my TSP. It is not a tax deduction because the income wasn’t taxable in the first place. However, they also made contributions from my taxable income. I thought it was all from my CZTE. When I returned to my civilian job, I began to contribute and maxed out my contributions, not knowing about the earlier…
Q. In 2008, when the market crashed, I put a lot of my G and C funds into the S and I. The balance was around $107,000 at the time. It’s now 2013 and my balance today is $270,000 as the share prices for the S and I have more than doubled. The S Fund went from $11 a share to $26 a share. The I Fund went from $12 a share to $25 a share. When is a good time to move all of the S and I back into the G or C funds so that I do not…
Q. You received a question asking if one could transfer money from a Simplified Employee Pension IRA to the Thrift Savings Plan after retirement and you said “yes.” Is the answer the same for making the transfer before retirement? A. Yes.
Q. I am retiring under FERS soon. I am now age 69. I have about $175,000: 74 percent in G Fund; 24 percent in C Fund. I would like to move some or all out of the G Fund to get a better return. Your advice would be appreciated. A. This is not nearly enough information to determine the proper asset allocation for you. I will note, however, that the additional return you seek will come with much greater risk of loss than that posed by the G Fund, so be careful.