Browsing: TSP

Q: Is it possible to obtain the various recommended asset allocation models that you mentioned in your column of Feb. 8, 2010? That was an excellent article! A: Our allocation models are proprietary and intended for use as part of an integrated management process. You will find a useful set of TSP allocation models at www.tsp.gov in the L Funds section. Use the starting allocation for each of the L Funds as a guide.

Q: I retired as a FERS annuitant Feb. 1, 2006, when I was 62. If I am rehired, will my current FERS gross annuity before taxes be deducted from the new gross salary before taxes? If I have the maximum for retirement, including the over 50 extra amount, deducted and invested in the TSP, am I matched by the federal government and vested from day one for as long as I decide to work? I left my TSP with the federal government and I have not taking anything from the TSP. I’m working as a federal contractor. A: Your TSP…

Q. I retired under CSRS in 2006 . I already took out my one-time withdrawal of TSP a couple years ago.  I did not go to work after retiring and do not have enough credits to receive Social Security.  I also do not have any other IRAs or a Roth IRA.  My question is, if I want some of the money, is there anything I can roll it into where I can draw out partials when I want, or is the only other thing I can do is withdraw it all and pay the taxes on it? I don’t want…

Q: I have attempted to get answers on withdrawing my annuity but I am generally referred to the TSP page. Unfortunately, it doesn’t really answer my specific question. Can I purchase an annuity with part of my TSP and leave the balance in my TSP until I am 70½ and then start taking out monthly payments? A: Yes, as long as you haven’t already used your one-time partial withdrawal allowance at the time you use it to buy the annuity.

Q: I’m recently separated, keeping the house, and want to refinance in order to release my wife from the original mortgage. I do qualify to refinance, but am upside down by about $30,000. I’m a federal employee, and would have to take the $30,000 out of my TSP retirement account. If I make an early withdrawal from my TSP account that will be used solely for refinancing my home, will I still have to pay tax and the IRS early withdrawal penalty on the $30K? A: None of the circumstances you mention will excuse you from the early withdrawal penalty.…

Q: I just read the “lost decade” article in Money Matters and I am wondering why you did not mention the L Funds. I have all my Thrift Savings Plan funds allocated to L Funds as recommended to me since I  am in my 10-year window of retirement. Is that a mistake? Should I also diversify into the other five individual  funds? A: I’m not a fan of the L Funds, but I can’t say that using them is a mistake. The problem I have with them is that it’s difficult to know whether the robotic allocation shifts they make are…

Q: What happens with Federal Employees Retirement System unused sick leave and annual leave at retirement? I will have 2,080 hours at retirement and would like to cash that time in toward my Thrift Savings Plan. A: Based on the current regulations, the potential candidate for this maneuver would be unused annual leave, which must be taken in cash at retirement. Nothing definitive has happened on this yet, but it is under consideration.

Q: In 2006, my financial adviser convinced me to take a one-time within-service Thrift Savings Plan withdrawal and roll it into an Individual Retirement Account for purposes of stretching the IRA withdrawals. My money was invested in a variety of funds within the American Funds group (all front-end loaded). Of course, my funds were decimated in 2007 and 2008, and I have yet to recover. Can I roll my IRA funds back into the TSP after having exercised the withdrawal? I am trying to rectify what I have come to believe was a serious error in judgment. I am 65…

Q: I retired three years ago at age 56 with 33 years of civilian service in the Civil Service Retirement System. I elected to take my Thrift Savings Plan contributions and roll them over to a qualified program. I began drawing off my investment in the fall of 2008. After talking to our tax adviser this year, I learned that I was penalized for early withdrawal in 2008 and will be again in 2009 because I will not be 59 1/2 until June of this year. After attending a retirement seminar several years ago, I was informed that because I was…

Q: I’m retirement eligible and in the Federal Employees Retirement System. I’m 60 years old and, after having paid for my military years, I’m two months away from 40 years of service. Does my Thrift Savings Plan account continue to draw interest as I receive my annuities? A: Your TSP account continues to produce the returns that accrue to the funds in which it is invested.

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