Q: I retired as a Federal Employees Retirement System annuitant Feb. 1, 2006 at age 62 plus a couple of weeks. If I am rehired, can you tell me:If I have the maximum withheld for retirement ,including the over 50 extra amount, deducted and invested in the TSP am I matched by the federal government for 5 percent plus the over 50 amount withheld? Are all government matches vested from Day One for as long as I decide to work? I left my TSP with the federal government, and I have not taken anything from the TSP. I currently work…
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Q: After contributing $22,000, including age 50 catch-up contributions, in calendar year 2009, may I also contribute $6,000 to a traditional (nondeductable) IRA, which includes the standard $5,000 plus $1,000 age 50 catch-up? A: Your participation in the Thrift Savings Plan should not prohibit you from making the maximum nondeductible contributions to a traditional IRA in 2009.
Q: As a Federal Employees Retirement System employee, I was told that the limit on Thrift Savings Plan contributions changes once you reach age 50. Is this true? If so, what is the additional amount? A: You’re talking about catch-up contributions, which are an additional contribution (or total amount of annual contributions) that can be made starting when you reach age 50. For 2009, the catch-up contribution limit is $5,500. Check www.tsp.gov for more details.
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…