Browsing: TSP

Q: I am a federal employee under the Federal Employees Retirement System. In the year and month of my retirement, I will have about $170,000 in my Thrift Savings Plan. In the year of my retirement, can I do a one time withdrawal of $30,000 and not request a monthly withdrawal that year, and then the following year of my retirement start my monthly withdrawals? A: Yes, if you have not used up your one-time partial withdrawal prior to taking the $30,000 withdrawal. — Mike Miles

Q: I just retired under the early out option from the U.S. Postal Service, and want to start regular monthly withdrawals from the Thrift Savings Plan, until the MetLife annuity index rate goes up somewhat. Can I, at that point, change from monthly payments to an immediate annuity option, without any kind of penalty? I am 52 years of age. A: Yes. — Mike Miles

Q: My husband is 67 years old. He mentioned recently that he thinks he would like to work another five years before retiring from the federal government. I have a question regarding his Thrift Savings Plan. I have read the questions on the TSP Web site, and it sounds to me that as long as he has not separated from federal service, he is not required to take any distributions from TSP. Am I reading that correctly? If not, how is his TSP affected if he continues to work past the age of 70½? Can he still contribute to TSP?…

Q: I’m planning to retire this calendar year and want to leave my Thrift Savings Plan as is. Will I be able to take TSP distributions at will, or am I only allowed to take a one-time distribution (roll-over)? A: You’re only allowed to take a partial distribution one time. You may also elect a full distribution in the form of adjustable monthly payments and a final single payment, however. — Mike Miles

Q: I have an IRA from a previous employer that is not performing too well. The Thrift Savings Plan seems to be rebounding rather nicely over the past several months. Should I move the IRA into the TSP? Can this be done without any penalties? A: The TSP is a better investment environment than any retail IRA account I have ever seen, and I generally recommend that eligible investors move their IRA money into the TSP whenever possible. You are eligible if your IRA account contains no after-tax money — money from non-deductible contributions. Check with your IRA custodian to…

Q: If after I retire, I want to combine my Thrift Savings Plan and a 401(k) that I have, can I do this? Even if I create a 401(k) after I retire and then, several year later, want to combine these? Can I pull the 401(k) into TSP? A: Yes, yes and yes. — Mike Miles

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