By Mike Miles
October 23rd, 2014 | TSP withdrawal
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 off of my money and can I move the money around if I so choose? Read the rest of this entry »
October 21st, 2014 | TSP withdrawal
Q. Upon retirement, can I elect to take a full withdrawal in the form of monthly payments, and then at some later date choose to take a one-time lump-sum withdrawal? For instance, three years after retiring, can I choose to remove $50,000 if I have never taken a lump-sum amount.
A. Only if the lump-sum is the entire balance remaining in your account.
September 29th, 2014 | TSP withdrawal
Q. If I’m still working at 70-1/2, do I have to start drawing my TSP, or can I wait until I retire at 72 or 73?
A. You may wait until you retire. Your first RMD payment is due by April 1 of the year following the calendar year in which you reach age 70-1/2 or retire, whichever is later.
September 11th, 2014 | Investing
Q. I am federal employee who transferred from CSRS to FERS in October 1998, and I have 37 years of federal service at age 66. Planning retirement within the next year, and I would like to ask your opinion about my TSP allocation which is G Fund at 35 percent, F Fund at 10 percent, C Fund at 35 percent, S Fund at 8 percent and I Fund at 12 percent. Is this an allocation to keep when I retire? Read the rest of this entry »
September 10th, 2014 | TSP withdrawal
Q. My job will end and I plan to retire Dec. 28. I am eligible for discontinued service retirement. At the time I submit my paperwork (approximately August/September of this year), I also plan to submit my request to withdraw a lump sum out of TSP and then set up monthly withdrawals. I will be one month short of my MRA which under Discontinued Service Retirement is not an issue except when I will be eligible to supplement all of this retirement income – FERS annuity/TSP withdrawals – with the special retirement supplement. Not a big deal … I can wait the month or so to have this kick in. So I thought! Read the rest of this entry »
August 13th, 2014 | FERS
Q. I am 62 and a FERS employee. Can I retire with my FERS annuity and TSP and wait until my full retirement age of 66? I do not plan to work after I leave.
July 25th, 2014 | TSP withdrawal
Q. I retired over a year ago and just started working again. Can I transfer my TSP account to my new company’s retirement savings plan without a penalty? I’m 54 and plan to work until age 65.
A. Yes, but it might be a bad idea. You’ll probably be better off keeping your TSP account and transferring your private-sector plan balance into it after you retire.
July 17th, 2014 | TSP withdrawal
Q. I will retire in two years. If I leave my money in the TSP, what happens when I reach 70-1/2 and I am forced to pay a certain percentage of my savings out every year due to my age. Does that mean I would have to pull all my TSP money out (pay taxes on it) to transfer it to another account in anticipation of the yearly deduction?
A. If you begin monthly distributions using form TSP-70 during or before the year you reach age 70-1/2, the TSP will automatically distribute the required amount each year. There is no need to leave the TSP while you are still alive.
July 10th, 2014 | TSP contribution
Q. I am 65 years old. I have been employed in the federal government for nine years. At this late stage and age, should I join TSP.
A. If you’d like to save money for your use later in retirement, yes.
June 18th, 2014 | TSP withdrawal
Q. I will be 57 in June 2022, meeting the criteria of MRA +30 years creditable service. If I postpone retirement to age 62 for 1.1 percent multiplier, will I be able to access my TSP funds in the meantime; i.e. at age 57 until retirement at age 62?
A. Once you’ve retired; yes.