Browsing: TSP

Q. My husband and I are looking at investing into a new hotel being built. I have worked in the hotel industry for 15 years, and this is a great opportunity for us. He has been active duty in the Air Force since 2011 and has roughly $20,000 in his TSP. Can he transfer his TSP balance to a Self Direct IRA to invest the money into the hotel deal? Are there penalties involved? He would continue his normal contributions to the TSP account as we move forward, but we are interested in using the $20,000 to invest in the…

Q. The stock funds (TSP) offered, Small Cap/Large Cap, invest in stocks. What happens to the dividends? A. They are retained inside the funds and are reflected in the share prices.

Q. I will be 70 in February 2016 and plan to retire and take all my money out of my TSP. I am a single divorced woman and do have monthly security for which I have been paying taxes. Can I take all my money out, as I have calculated that the $1,000 I am from Social Security is not enough for my expenses as I have calculated it. A. Yes, you may take all of your money out. Use form TSP-70.

Q. I just started a federal career at age 31. I rolled over about $21,000 dollars into the S fund from prior retirement. Would it be better to use the L funds for growth which carry less risk, or seek the highest amount of returns in the S fund. I am huge risk-taker when it comes to investing, just trying to make informed decision before accepting all the risk of the S fund with no diversification. A. Let’s see … I know that you’re 31, have about $21,000 in the S Fund, are a huge risk-taker and know little or…

Q. I was recently hired at the the FDA. I have about $43,000 in student loans with a high interest rate. How much should I set up to be put into my TSP in order to take a loan from myself? Would this be a smart move? I believe that this way I’ll take out a loan from myself at a lower interest rate.

Q. Are all TSP withdrawals subject to the 20 percent federal tax withholding? Including full withdrawal by way of monthly payments?  And is this done automatically when you set up your payout options with TSP or do you need to complete a form? A. Not all TSP withdrawals are subject to mandatory withholding. See the table on Page 3 of the notice at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf for the rules. Mandatory and default withholding happens automatically. Anything else, you’ll have to request.

Q. I have a TSP residential loan. I sold the property associated with that loan and bought a new one. Am I obligated to pay back the loan all in one lump sum now, or may I simply continue making the payments, in effect switching out the primary property with which the loan is associated?

Q. My mother recently passed away and left me $30,000 from her traditional IRA. Can I transfer this to my TSP? Would there be any penalties or tax hits? A. Special distributions rules apply to a Beneficiary IRA account, and it is not eligible to be transferred into your TSP account.

Q. I am a firefighter with a county department, and also prior military. Since being discharged and starting my new career, I haven’t been able to figure out how to continue investing money into my TSP. Am I unable to do so, now that I am out of the armed services? Or am I just not looking in the right place?

Q. I am 25 and just started my TSP and want to invest in a very risky fund. What would be best for risky? Or should I take a different approach or is risky fine for someone my age? I am a risk-taker in life.

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