By Mike Miles
February 1st, 2012 | Uncategorized
Q. I’m 72, and I must make a decision on Thrift Savings Plan withdrawals. I do not need any additional monthly income. Is there any advice/guidance on what options are best to take? Is it better to take a TSP annuity or to purchase one from another insurance company?
A. I don’t know why you’d use your TSP assets to buy an annuity if you don’t need income, particularly with interest rates so low. I suggest you manage your TSP and have them send you the Required Minimum Distribution each year. You can then reinvest the money, after taxes, in a taxable account.
February 3rd, 2012 at 7:47 am
I am plainning retirement next year
my plan is to withdraw all of it pay off the house and re invest the rest in addition my my self off by re investing what I was paying as a mortgage.
Suzanne McCoy Says:
May 17th, 2012 at 11:29 am
In march 2013 I am eligible to retire as federal le officer at age 56 with 23 years of federal service (20 in law enforcement). By October 31 2013 I will be forced to retire as I will be 57 October 11th. What is the best thing I can do with my tsp (assuming I don’t need it) to avoid penalties and or taxes. Everyone is saying that I should roll it over to an IRA so I don’t get a penalty and will pay less taxes in event that I need some money and have to make a withdrawal out of my Ira. I also heard that I will have the option of taking out a one time one lump amount at time of retirement without penalty. Please tell me what my options are and tax penalty ramifications. Thank you.
Also are there any avenues to request a waiver on the mandatory retirement age of 57 and get an extension until 60?