Q. I’m a FERS employee. As I reach retirement and knowing about my retirement and Social Security, what is the best way to maximize my TSP? If I have $1 million in my TSP, would moving the money from the C Fund to the G Fund and implement the 4 percent rule without wavering on my withdrawals would I run out of money? If the G Fund pays 1-2 percent every year I still seem to leave this Earth with money remaining. Looking at 4 percent calculation models, if you’re making an average above the 4 percent you wind up…
Q. I am a FERS employee age 47 with 27 years of service. I am currently on FMLA and will be resigning and applying for medical disability retirement. I know I can withdraw from my TSP but am not clear on the annuity option tax penalty. I want to withdraw funds to sustain me while waiting for a decision on my disability retirement. A. If you receive a TSP distribution before you reach age 59 ½, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10 percent of any taxable…
Q. I plan to retire at my MRA, which is 57 with 30 years of service. I plan to start withdrawals of my TSP to supplement my FERS retirement and FERS supplement at that time. Will my TSP withdrawals be subject to an earnings test and impact the amount I receive for my FERS supplement?
Q. When I retire I would like to pull money from my TSP (partial lump) to pay back a redeposit owed to my FERS. Can that be done and, if so, is the money taxed or suffer any other penalty? I will be 59 and 4 months upon my retirement Dec. 31, 2019. The redeposit is due 6 months prior to my retirement date. The amount I am paying back is $25,000.
Q. I am permanently, totally disabled from my doctor after neck surgery. I am FERS, starting in 1990. I retired from the U.S. Postal Service on disability retirement on 1-1-2017. I am thinking of withdrawing $1,000 a month from my TSP on a full payout. Will this affect my Social Security I am receiving, or affect my pension? Do TSP withdrawals affect disability retirement pay in any way?
Q. If I take the VERA at age 55, can I roll my Fidelity IRA into my TSP and take monthly payments for all of it starting at 55 without the 10 percent penalty? Also, what is the time lag typically from retirement to get your first FERS annuity payment and TSP monthly payment? In other words, how long would I be out of pocket when I retire until those payments kick in?
Q. I am in the FERS retirement plan with 30-plus years of service and a plan to retire at age 63 with 42 years of service. I have most of my TSP money in the traditional TSP, but have recently began putting all of my contributions and catch up contributions into ROTH TSP only. I would like to avoid required minimum distributions on my ROTH TSP funds when I retire by transferring this money out of the TSP system into a brokerage account. Is this possible?
Q. I retired from the U.S. Postal Service on March 31, 2018, at age 55 under FERS. I had approximately $18,000 in gross earned income up to that point. I contributed approximately $3,000 to my TSP up to that point also. Can I still contribute $6,500 to my IRA for the tax year 2018?