By Mike Miles
April 24th, 2013 | Uncategorized
Q. I have to withdraw my Thrift Savings Plan because of my age (70½).
I am indecisive as to:
1. Withdraw all to a saving account
2. Get a partial withdrawal for 120 months, or
3. Withdraw part of it and gradually withdraw the rest over a 10-year time span.
My considerations are:
1. No taxes, as I understand it, over a period greater than 10 years on a gradual withdrawal
2. Putting me into a higher tax bracket.
What advice or comments can you give me?
A. Unless you can come up with a good reason – that is, using actual estimates of costs, taxes, etc., rather than just qualitative statements – I don’t know why you would take any more than the required minimum distribution each year.
March 11th, 2013 | Uncategorized
Q. My husband will be retiring in June 2014. He will turn 50 in March 2014. Can we still contribute the full $17,500 plus $5,500 catch-up (I realize next year contribution limits may increase) even if he is only in for half a year?
A. Yes, as long as his pay will support the deferrals. The limits are not adjusted for partial years.
November 10th, 2009 | Uncategorized
Q: I am a federal employee under the Federal Employees Retirement System. In the year and month of my retirement, I will have about $170,000 in my Thrift Savings Plan. In the year of my retirement, can I do a one time withdrawal of $30,000 and not request a monthly withdrawal that year, and then the following year of my retirement start my monthly withdrawals?
A: Yes, if you have not used up your one-time partial withdrawal prior to taking the $30,000 withdrawal.
— Mike Miles
October 14th, 2009 | Uncategorized
Q: I’m planning to retire this calendar year and want to leave my Thrift Savings Plan as is. Will I be able to take TSP distributions at will, or am I only allowed to take a one-time distribution (roll-over)?
A: You’re only allowed to take a partial distribution one time. You may also elect a full distribution in the form of adjustable monthly payments and a final single payment, however.
— Mike Miles