As a Thrift Savings Plan investor, you have access to retirement investment funds that are about as inexpensive as you’ll find anywhere. In 2014, the total cost charged to participant’s accounts ranged from 0.029 percent to 0.049 percent of account assets, depending upon the fund. Even at the high end, 0.049 percent — or a little under 5 cents for every $100 invested — is extremely low. You can invest $1 million in the TSP, in a well-diversified portfolio, for $490 per year or less. I don’t think you can do that anywhere else. So, the TSP’s expenses are the…
Browsing: TSP
Q. I am considering leaving my federal job but still owe approximately $10,000 back on my TSP loan. How can I figure out if it’s more beneficial to just have the balance count as taxable income vs. taking a bank loan to pay it back? A. There is no way to know, in advance, which will work out better in the end. You might want to have your tax preparer run pro-forma calculations to see what the impact will be on your tax returns, and make the decision based on that information.
Q. I am still in government service but did need to take a lump-sum withdrawal of my TSP funds at 59-1/2 years old. My plan is to continue to work and to pay into my TSP account. What will my withdrawal options be when I retire at the planned age of 68?
Q. I understand that you have up to 90 days to repay your outstanding loan after retirement. Is there an option for the outstanding balance to be paid with funds in the TSP account prior to the 90 days? A. No.
Q. I am 69 and plan to continue working after age 70. As I understand it, I won’t have to take RMD until April 1 of the year following the year I separate from federal service. May I continue to make contributions to my traditional TSP after I reach 70? A. Yes.
Q. We are planning to buy a home and will use a Veterans Administration loan. We will pay all the closing costs and plan to use a TSP residential loan for those costs. We have to show the money in our bank account as we move forward with our loan proceedings. We are not sure of the exact amount that will be needed at closing, so could possibly end up with more than what is required. Can we use any excess? How do we report what is used for the purpose of closing and fees and possible down payment? If…
Q. I am going to retire within the next three months. I have done my homework but am torn about my TSP. I don’t know what is the biggest bang for my buck — roll over my TSP into another investment (not knowing which one yet) or to leave it where it is. Since this will be part of my retirement, I want to pay as little as possible in maintenance fees. My fear is that the new MyIRA could be looming over my TSP. I do not want to invest my hard-earned money into worthless government bonds. It is…
Q. I’m a retired federal employee and contributed to the TSP during my career. I’ve not taken a withdrawal. I’m 53 and started a new job as a state employee. I signed up for their state-sponsored 457 retirement account. Will I be able to roll that money into my TSP when I retire or leave my state employment?
Q. What percentage of all TSP funds are in each fund? That is, where are employees keeping their money? In my office, everyone seems conservative and most have their money in the G fund. Is this typical? A. The TSP releases this kind of information only occasionally, so this is not a question I can answer. I also don’t see how the answer would be of any practical use to a participant. Q. It allows a participant to allocate his money in a manner similar to others. In my workplace, my co-workers come to me for TSP allocation advice. Is…
Q. What percentage of all TSP funds are in each fund? That is, where are employees keeping their money? In my office, everyone seems conservative and most have their money in the G fund. Is this typical? A. The TSP releases this kind of information only occasionally, so this is not a question I can answer. I also don’t see how the answer would be of any practical use to a participant.