Q. I will be 57 in 2015 and will have 34 years under FERS. I have a large balance in the ROTH IRA account in my TSP. If I retire before 59-1/2, will I be taxed on the money I withdraw from my TSP? I have $600,000 in the 401K and $300,000 in the Roth. I plan to leave the money in the TSP and take out $30,000 per month. A. Since you will be retiring during or after the calendar year in which you reached age 55, your subsequent TSP withdrawals will be exempt from the early withdrawal penalty.
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. If I retire under CSRS at 55 years old and 34 years of service, when will I be eligible to get an annuity from my TSP? Will I have to wait until I am 59 or can I start drawing it upon retirement? A. You will be free to buy an annuity or withdraw funds without penalty immediately after you retire.
Q. I will retire under the law enforcement FERS category. Because I am retiring at 50, I plan to take the life expectancy payments. If I want to take a partial withdrawal of $50,000 in a few years for my son’s college education, can I do this?
Q. Say I have $100,000 in my TSP account when I retire. I decide to choose monthly payments for the entire $100,000 at a monthly rate of $500 a month. Does the $99,500 that is left in the TSP after the first month’s payment continue to earn interest, or is that $100,000 value locked into “stone” and I will never earn another nickel on the money that is sitting there (i.e., after 200 monthly payments my TSP funds will be gone). I understand that once a year I can adjust the monthly payment amount. Assuming that I still do earn…
Q. I am 52, and I have all my TSP money in the C Fund: $187,000. I probably will not retire until 62 or 65, and by that time I will have 30 years of government service. Which L Fund should I switch to, and should I make a lump-sum move now?
Q. Are FERS retirement checks, TSP distribution checks and Social Security checks a monthly or bi-weekly distribution? Is there an option to make requests for either method? A. All are monthly.
Q. My wife retires in January from federal service. She had CSRS Offset. She is receiving her annuity, but did she contribute to FERS while in CSRS offset? And if she did, does she now have stocks in FERS that she can move into her mutual fund? A. She did not contribute to FERS if she was not covered by FERS. If you’re asking if she contributed to the Thrift Savings Plan, that’s a question she will have to answer. If she did, then she has money that is hers to do with as she pleases, within the rules.
Q. I’m in the FERS retirement plan and will retire March 31 from the Defense Department. At the time of retirement, I will have more than $300,000 in my 401k. I have two multiple-part questions: 1. Can I decide how much I want to take in monthly withdrawals and, if so, do I pay the 20 percent penalty monthly or do they take the 20 percent off the $300,000 before I even start getting my monthly payments? 2. If I leave my money in the TSP, do they continue to invest my money, and will I continue to earn interest…
Q. I am 63 and will be retiring under FERS probably within the next two years. Am I allowed to have my long-term girlfriend on my TSP annuity? A. Maybe: “If you chose a TSP annuity that provides for a joint annuitant other than your spouse, the joint annuitant must be either a former spouse or someone with an insurable interest in you. This means that the person is financially dependent on you and could reasonably expect to derive financial benefit from your continued life. Blood relatives or adopted relatives (but not relatives by marriage) who are closer than first…