The Best Place for Your TSP once You Retire
ฝัง
- เผยแพร่เมื่อ 29 มิ.ย. 2022
- Free Book: Building Wealth In the TSP: Your Road Map To Financial Freedom as A Federal Employee:
hawsfederaladvisors.com/free-...
Want to schedule a consultation? Click here:
hawsfederaladvisors.com/work-...
TSP Cheat Sheet
hawsfederaladvisors.com/tsp-c...
Submit a question here:
hawsfederaladvisors.com/quest...
Check out the full article here:
hawsfederaladvisors.com/blog/
Check out "Building Wealth in The TSP" on Amazon:
amzn.to/2FytP9W
I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.
![4BANG - NOT LIKE US (REMIX) [Official Music Video]](http://i.ytimg.com/vi/HO22cYkha1s/mqdefault.jpg)
One thing he did not mention. TSP and 401(k) accounts have protection from creditors and lawsuits that IRA's do not. have.
In Florida your IRA is also protected.
I didn't know that
thank u so much for all this infos... i retired at 57 yrs with 31 yrs of service.... TSP is my little wealth plus my home, so im glad you giving us all this free information. You're a blessing Sir.💕
Great job!
I am 100% in agreement I am not a fan of annuity either
I always enjoy your videos because you explain things simple so everyone can understand. I will be retiring next year at age 57 with 35 years of government service and all your videos I'm taking notes. Keep up the good work and thank you.
You have done a great job. Are you a TSP millionaire? If not how close did you get? What funds were you invested in?
@@calvinhaynes5781 Stock market took me down just a little but I'm still good with the amount I have in it plus my savings are good as well. I invest in all the funds some will say oh no you should've did this or you should've done that but my amount shows me I did alright with my choices. That's why I don't have to wait and retire at 62-65 years old, you should always have more than one area with touchable funds.
That is awesome! Thanks for watching!
Me too , 36 years !
Yes I feel the same way this guy is the best I have ever listen. So honest s d straight forward
Very helpful and informative! Thanks for putting in the time to make these videos.
This an excellent video. I didn't know Federal employees could take their TSP out without any penalties as long as they hit 55 years old and meet their retirement requirements. I had always thought we had to wait until 59.5 to start retrieving from the TSP.
I can retire at 55, but I'm planning to wait until 57, so I don't get the 10% penalty taken out from my pension (5% per year). I always thought I would get my pension, plus the FERS supplement at 57, and then I had to wait until 59.5 to start retrieving money from my TSP. Extremely happy to learn that is not the case and I can get all three (3) out at the same time. Well, FERS and FERS supplement and start retrieving TSP as soon as I retire at 57.
It is sad that Federal employees are not provided with this information. Thanks for your channel and all the excellent information you are providing for us.
It is nice that we don't have to wait until age 59.5. I always thought that the only way to get it prior to that age with penalty would be with the IRS 72T provision/ rule.
You must be retired to avoid the early withdrawal penalty.
A couple things he left out. If you retire under the Safety officer program you get your TSP penalty free if you retire in the year you turn 50 not 55. That is for Firefighters, Secret Service, Air Traffic Controllers... Also you don't have to do an all or nothing when transferring out of the TSP. When you retire you can get more free dinners from investment firm seminars that want your money. If you want to roll money out of your TSP for more flexibility such as a Traditional IRA or even a self directed IRA always keep a small amount in the TSP. As long as you do that you can always roll back in to the TSP. I have never seen less management fees than the TSP. They will always be low because the Federal Government wants TSP funds high to offset other Governmental areas. Edward D Jones, Thrivent, Ameriprise and all the others will charge a much higher fee.
I can't wait to have these kind of problems.
I liked your coverage of the rule of 55 (great to keep some TSP funds in place just for that purpose of pre-59.5 penalty-free withdrawals, a perfect way to spend down traditional dollars to get ahead of that RMD curve coming down the pike). You also mentioned trad-to-Roth IRA conversions, such an important facet of the long-term plan, especially for fed workers with taxable pensions. Thorough coverage, glad I subscribed!
I appreciate the very thorough advice on where to put your money after retirement
Your videos are always helpful to me as a retired Federal Employee
Another outstanding video, thank so much !!
Great video. Picked up some great knowledge.
Thank you; this is very helpful!
Great play, leading with annuitization (totally didn’t expect to hear that).
The rule of 55 is like holding a winning lotto ticket. Thank you whoever designed this golden ticket.
Love your videos. Content very useful and on point.
Thank you!
Very Helpful. Thanks!
Your Option 2 is very smart. Glad you highlighted its simplicity (and I'd add that it has extremely low fees compared to so many other options). Also, we can balance withdrawal % between Traditional and Roth ... which is nice. We were able to fully retire at 42 thanks to TSP's no penalty monthly withdrawal option. Withdrawal amounts are based on a life expectancy calculation. "Give, save, then spend" is the best financial advice anyone ever gave us. TSP was a great way to save!
Maybe educated yourself, TSP fees used to be low. They are not low now compared to index funds at Fidelity or Vanguard. TSP fees are literally 7 times higher than an S&P 500 index fund
It IS pretty annoying that the TSP doesn’t let you choose which fund to withdraw from. But it’s pretty easy to take a withdrawal and then promptly do an inter fund transfer to get the same result. So not really a big con.
I DID move the Roth portion of my TSP into a Roth IRA though, to have more control over whether I withdraw from the tax-free Roth investments or the regular tax-deferred side where withdrawals are taxed at ordinary income rates. That’s where the TSP’s “pro rata” rule truly impacts your choices.
Margaret, you cited my complaint with TSP withdrawals. When working and contributing to the TSP, you can designate which funds you contributions should be allocated to. The idea that when you start taking distributions from YOUR TSP, you lose control of YOUR TSP seems absolutely ludicrous. I understand your suggestion of rebalancing with an interfund transfer is not that difficult, The abundance of low fee equivalents to the TSP funds led me to entirely rollover to traditional and Roth IRAs.
Awesome info. This one is going in my favorites for future reference. I WILL retire at 56 and 10 months (my MRA). I’ll have 36 years. I never thought about the last thing you said. Thanks for the info.
Glad it was helpful, thanks for watching!
What’s important to mention is that this isn’t necessarily a choose-one-of-these-3-places affair. A retiring fed employee with a TSP (perhaps a combination of traditional and Roth dollars) could do with all three options, some portion of the TSP source balance split among those three options. I’m tracking your point about annuitization not being a major priority for those with solid fed pension and SSA benefits, but an annuity choice doesn’t have to be an immediate/income annuity. When one is establishing or tweaking a post-retirement asset allocation, the fixed income allocation could include a fixed rate annuity (industry calls them MYGAs) and get a solid guaranteed fixed income return that contributes to that slice of the allocation pie. Commissions chap my hide as well, but MYGA commissions are low relative to those Byzantine variable and fixed index annuity commissions, and MYGA rates are superior to other guaranteed fixed rate deposit products, and certainly are not volatile like conventional bond products.
I just retired from federal service and very much appreciate your videos. You have a great knack for untangling the nuances of investment opportunities and offer some great advice about how to make the best decisions based on our own personal circumstances. I honestly have found retirement much less stressful because I now possess so much more concrete knowledge of how to be smart with my money in retirement. That is in large part thanks to this channel! Thank you!
Are they still backed up on processing retirement requests? How long did yours take? Thank you...
@@paratroopergirl4064 Since the change of the TSP and requirement of the new login procedure May16. I have not been able to access my account. I am very recently retired. I need access to my life savings. I have spent 45 hours on the phone since June 7, 2022 with the helpline, still no resolution in sight, Any suggestions? You cannot get the form75 online to make withdraws or roll to IRA.form 99 after separation.. They said they would mail them to me on three separate occasions I have not received any. The first request was submitted on June 16 it is now July 6.
@@s.c.6367 --- Just give tsp a call. They will walk you through the new process.
@@s.c.6367 ---- Ask to speak to a supervisor and calmly explain your needs and verify your address.
I am rolling some, but the majority of mine is staying with TSP. When insurance companies decide not to charge me anywhere from 15 to 35% in fees to annuitize, then I will consider them.
I have my Roth account with Fidelity for more flexibility and growth potential. More than likely I'll move my TSP to Fidelity. Good information Thanks!
Thanks a lot for your videos that help us to make better decisions. I going to retire at the end of this year, I am 68 years old and I had been loosing money , And I feel confused to the next move I have to make , but this video show me that the right thing to do is move my tsp to the Ira. Thanks again for your great information
Glad to help. Thanks for watching!
Good info👍👍👍
Had not thought about losing the benefits of the 55 rule if you rolled your TSP into an IRA. Thanks for the great info!
Look into it also. I believe tsp won’t allow you to transfer to an IRA until 59 1/2.
I find it kinda sketchy how the TSP opened up the mutual fund window but we still can't get a TSP to TSP Roth conversion.
Thanx Dude.
Thank you. My HOLY REGARDS to you JUMIAPAY in my COUNTRY NIGERIA.REGARDS.
Thanks Dallen!
You bet!
Once I retire at around 62, I'm 99% sure that I will roll over my TSP traditional and Roth to an IRA and a Roth IRA. After that, I would convert my traditional Roth to a Roth IRA slowly so that I wouldn't have to pay all the taxes at once or be thrown into a higher tax bracket by mistake. I only wished that all my TSP was in the Roth TSP, but that is not possible because I barely started the Roth TSP when my account was already around $60k. And the feds matching 5% always goes into the traditional. Thanks for the video! 8:28
Wow I was set on TSP but I'm convinced that I may roll it over to my old 401k when I worked in corporate. Everything is the same except it has more control.
I like your tie.
Great video. An annuity is insurance, not an investment. I totally agree with you. I like the flexibility of a Roth IRA and Traditional IRA. There are some excellent low-cost Vanguard mutual funds similar to the C, S, and I Funds. Vanguard also has some excellent dividend-paying mutual funds. I'll probably keep in the G Fund whatever I leave in my traditional TSP and just use it as my cash bucket. I'll roll everything else into ROTH and Traditional IRAs. Thank you.
I'm moving a chunk right now!
I’m under mandatory distribution age, retired and not drawing Social Security yet. Am using this time to convert some of the Traditional portion of TSP to Roth at Vanguard. I wish the conversion can stay in TSP but that isn’t currently an option. At mandatory age, will roll the Roth TSP into Roth Vanguard, pay the minimum distribution amount and maybe convert over and above to Roth Vanguard. Unlike most Roth accounts, we HAVE to get a distribution or rollover outside TSP.
When I retired I put it all in the G fund for safety pending my military reserve retirement kicking in. Then I'll reallocate it to the C. S, and I funds.
Let's say you have a million in the traditional TSP. I'd direct rollover 75% into a traditional CD IRA. I've seen some at 5% for 5yrs. Have that interest deposited monthly in my checking account. Of course it would be with several credit unions for NCUA protection. Simple guaranteed income locked in for 5yrs so there's flexible without all the fees and commissions of annuities. The other 25% exposed to market for continued growth.. or whatever mix works for you. Then add SS and pension. Really great if your debt free also.
If you withdraw 75% after retirement, you will pay income taxes on the entire 75% for the year of withdrawal.
He said roll over not withdraw. When you roll it over you do not have income taxes.
McMissin' the G Fund interest calculator (stopped clock) 😀
Agree best to keep TSP in place in current BEAR market, to have IRA and annuity Options. Agree MetLife offering only income/annuitzation products are poor choices. If we're lucky, the FERS pension and Social Security are better income annuities. Use my Fidelity IRA from non Federal work to buy "CD savings" in Accumulation annuities (MYGA/FIA) as well as make Roth Conversions in 12% bracket. Everyone's situation is unique, maybe the current TSP log in troubles remind us not to manage what we cannot control, but I am surprised that TSP stopped providing dollar estimate of annuitization of our TSP balances in the year end statement . Also, the new Mutual Fund window is a disincentive to keep TSP in place but wait after recession before moving to IRA.
I'm retired. I had great strategies and success investing in the TSP. One thing I and many others were not prepared for during retirement, the tax strategies of withdrawing from the TSP and other income streams. Which could effect your social security taxation and Medicare premiums. I had to get up to speed very quickly in terms of taxation education during retirement!
Great info and can you provide an example?
Super video.
Thank you very much!
hI, I KNOW YOU SAID WITHDRAWS COME OUT PRO RATA BUT I JUST LOOKED AT THE TSP WITHDRAW OPTIONS AND IT DOES GIVE YOU THE CHOICE IF I COULD ATTATCH A PIC I WOULD.
A little too late I am on my second paycheck from tsp and I wish I knew about that rule that you said about
The annuity
what is your view of fixed index annuities, as opposed to a traditional annuity?
one can address the pro-rata withdrawal (C fund and G fund example) by doing an allocation from G fund to C fund immediately following the withdrawal.
Rental income comes in regardless? Ask Landlords about their 2020 and 2021 rental income.
This depends on the quality of tenants....no problems throughout the pandemic with rents from upstanding renters.
Have You done a video on Samba term life
Hi, thanks for the info. I did retire in the year I turned 55. I have an outstanding TSP loan what would be a smart strategy for this situation. With respect Thanks
Could you do option 4 which is a combination plan? Keep some in the tsp for immediate access in case you need some. After age 55 you can make penalty free withdrawals. You can also rollover a portion to turn it into guaranteed income down the road (deferred annuity) with no fees and rollover part into a Betterment IRA or Charles Schwab to continue growth of the TSP $$, once again low fee.
I'm in Alabama. Do you provide service there? Great videos!
He would work with you via Zoom or something similar I'm sure.
I canceled a Insurance policy @304k with the 30 day no penalty return. They sent me a check of the full amount I rolled over. What do i do with it as far as taxes go. I would like to know more about IRA'S.
for Medicaid planning, if you dumped your $482,000 TSP into an irrevocable annuity, would the remaining balance still count as a resource?
Also going into an annuity, if the market crashes down to almost nothing...2008/2009 again, you will still get your same monthly income for life with 100% certainty and not have to worry at all, or could the insurance companies go bankrupt and default, or is the money deposited into a safe "state regulated" account?
Thank you!!
Is it possible with the traditional tsp funds that are held to pull all of it in lump sum and pay the with the tax and be free and pull the rest that is tsp Roth at retirement at 65 or older and just pull all the money 💰 and put it in personal bank savings account then and not deal with any cons? Basically just take the money and run
The best feature of the TSP is the G fund which has a risk-free rate of return better than any IRA money market fund. I plan to keep my cash in the G fund during retirement and move my stock and bond investments to IRAs.
I believe at the present (feb 2024), MM pays more than the G Fund. I also believe when the bond market becomes Un-Inverted then the G Fund probably pays more.
Can you expound more on the Roth conversion please in a video from TSP? How does your firm work with Federal employees? Are you a fiduciary? How do you get paid? Do you specialize in dealing with Federal employees? What’s your strategy? Qualifications that make you able to work with Federal employees? References? Thanks
@ 6:30 Traditional TSP conversion to Roth TSP is not allowed. Contributing to Roth TSP is effectively similar to t-TSP conversion to Roth TSP. Video references traditional IRA conversion to Roth IRA. Note as default it's likely better for most people to contribute to Roth IRA instead of traditional IRA.
Is it possible to migrate money from your TSP into a Roth IRA from age 62 thru age 72) that is part of a revocable family trust? If so, how would that best be accomplished?
I had to take out about 4 thousand dollars out of my TSP but I am over 65. The taxes were 800 dollars but I received the 800 dollars back when I filed my taxes because I was under the threshold by he IRS of yearly income
I didn’t know about these choices and requested an automatic fixed payment every month. Can I roll my account to a Roth IRA now? I began withdrawals last October. I am over 70 yrs.
Just spoke with a retirement planner. Suggested I leave half of my tsp in the tsp, and the other half in a fixed deterred annuity. After watching your video and soon to be retiring at 56, I just may leave it all in the tsp. I want simplicity. I'll screw things up. What say you? Thanks for keeping it simple for me.
Thanks for the feedback! Sometimes simplicity is a much better option. What's most important is that you're happy now and in retirement and that you find a plan that works for you.
When you move a TSP over to say a Roth IRA you still have to pay taxes and now you are subject to the 10% fee when you withdraw as opposed to the TSP so I am not sure of the benefit other than a bit more flexibility.? Husband is retiring at 60 with 38 yrs in.
Remember, Haws is still there to make money... (You may also make more money - with risk and stress - all a balance you must accept)
Hey man so I had a couple of questions. I am currently in the Navy Reserves so I signed up for a TSP when I was in boot camp I believe. I am in the process of getting a federal job at the moment. So down the road if I end up getting this federal job, I can contribute everything I make from the Navy reserves and from my job as long as it’s 19,500 a year correct?
You may contribute *$20,500* to your TSP account.
One more TSP rule that really bothers me if I pass on before my wife and how it works when she passes on. From the TSP beneficiary booklet, "Death benefit payments made from your beneficiary participant account must be paid directly to your beneficiary(ies). These payments are subject to certain tax restrictions and cannot be rolled over to an IRA or eligible employer plan. In addition, your beneficiary(ies) will have to pay the full amount of taxes on the taxable portions of the payment in the year it is received." My wife and I want to pass on an inheritance to our kids, but they would be hit with huge taxes all in one year. Isn't this also a good reason to move my money out of TSP and into a Vanguard or Fidelity IRA?
I don't see that clause in there. The direct beneficiary (spouse and non spouse) can put it into an inherited IRA. There's no lump sum issue that I can spot. I think it's misinformation that IRA companies or "financial advisors" push so that they get their pound of flesh and convince people to pay them 1% AUM
I will be definitely scrutinizing how the TSP would be disbursed if I were to die before my wife because, at least initially, I expect to leave my retirement account invested in TSP to enable withdrawals before 59.5 years old.
Let's see right now TSP 60% C and 40% G, $500,000 Fidelity (managed) $40,00 in ex employer 403b....am I set up for retirement @65... currently 62....oh yeah carrying way to much Credit Card debt (30,000)
Just leave it in TSP. I never understood why ppl move their funds.
Agree 100%. I retired at 55 and just left it there. I worked another job so I had enough income. Now I am fully retired and have started taking my RMD's. It just worked great for me. These financial advisors just complicate things and most people who go with them wish they hadn't.
In the past, the TSP and rules that made withdrawals more difficult than money in an IRA. Things are getting better.
As Dalan mentioned, if you have money in the tsp Roth, one will be required to take RMDs. However, if one rolls that to a Roth ira, then no rmds on those funds.
I was told that leaving it in the TSP works against your beneficiaries. When paid, the beneficiaries must include the money as money earned on their taxes; they cannot receive the money in increments like a traditional IRA.
If you do shift to a Roth IRA, isn't there a "five-year rule" meaning that you cannot withdraw from that Roth without penalty unless you held it for more than 5 years??
That is what I understand as well. I rolled my TSP into self-directed IRA precious metals account. But there are ways to set up entities and leverage that as long as the money made goes right back into it
I rolled over from TSP to Schwab. After 59.5 there is no good reason to stay in TSP.
Income (immediate) Annuities DO make sense, and are a great addition to a retirement - WHEN they aren't the only source of a retirement portfolio. Tip - do your annuity homework and research yourself to avoid a financial planner / broker making a commission. A good 20 year certain period Income Annuity right now will pay 50% over your initial investment amount over the 20 year course.
If you're special category the rule of 55 doesn't apply. You can start collecting TSP penalty free with 25 years at any age or 20 at 50.
What if I retired early on ssdi
at 50 with a tsp. Do I still qualify for withdrawals at 55 with no penalty? I also put in 25yrs of service. Thanks
Google 55 Rule. You can take it all out without 10% IRS penalty, however, you still pay income tax unless you roll into IRA.
Should you withdraw money for home improvement at 59 and half? Where you can pay some back into tsp if you are going to retirement at 60 and half. Or just wait until you retire but you will not be able to money back into tsp.
Consider taking home improvement TSP loan that you pay back before you retire.
If someone retires at age 50 with 25 years of service under a discontinued service when can they use their TSP without penalty?
I believe it's still 59 1/2.
At 55 if you are retired.
Haws; say I’m 65 and I have 1.6 million in my fund (C,S,I, & G). Can I move it all to the G fund and take my monthly contributions from there?
@@erickarnell thank you…
@@calvinhaynes5781 Having it all in G fund you lose opportunities for growth.
Feel free to submit your question here: hawsfederaladvisors.com/question-submission-page/
This is where we get topics for future videos
You can move into the L Income Fund. It is the most conservative of all funds and provides current income and some exposure to equities to take advantage of potential market growth. Of course if you like you could go with the G Fund solely. Interest rates are rising right now so you will not get hurt there.
@@erickarnell what growth? There has been none since Nov 22
Hi I am one year from retirement and 63. I was strongly considering putting half of my tsp into an annuity that also has a rider of double payment annually for an extreme disability....what do you think???
Don’t. You get 2 annuities already- social security and the pension. Your tsp is an investment. It’s supposed to have risk in it for potential growth. It’s probably better to buy an insurance plan for long term care disability
Annuities are a bad option 99% of the time. Unless you have a very peculiar situation, I would not buy one. Just like Dallen says in this video, either keep everything in the TSP or do a direct transfer rollover to an IRA or Roth IRA or a combination of both. If you ever sit down with a "financial advisor" and they try to sell you an annuity....run....fast.
@@scottschulte1157 I assume if you do a Roth IRA rollover you pay the tax on the whole balance up front?
@@blogo1111 Of course you would have to pay the tax. But of course most ppl can't handle a big tax bill like that tho so they do it incrementally year by year until it's all in Roth.
I am newly retired and would like to know if I have to pay fees if all my money is in the G fund? How are these fees determined and where can I find the information on how much these fees are?
At TSP site type "expense ratio" in search box at top right
When you speak of pro-rata - you just discuss it with respect to the TSP funds - But can you specify which account Traditional or Roth - or is there some formula the TSP uses to take some out of Traditional and some out of Roth ?
You may choose to withdraw from only your traditional TSP balance or only from your Roth TSP balance or pro rata from both.
Couldn't you transfer everything to the G when you wanted to withdraw and then return it back the way you had it?
Great question, this video might help:
th-cam.com/video/-m87vaPtQ88/w-d-xo.html&lc=UgxgWJP4Nt9M6aYHFst4AaABAg
Can’t get my money out. They don’t answer phone. They don’t reall6 answer emails.
I have a roth IRA and tsp roth. When can you roll the tsp roth into the Roth IRA?
When you turn age 59.5.
@@benjaminjohnson1693 nice thanks
@@bryansmith9163 you can roll it over as soon as you separate from federal service. Both roth tsp and roth iras can't be accessed until 59½. Plus the roth ira has to be opened for at least 5 years prior to withdrawal.
@@bryansmith9163 you can roll it over after you leave government service. If you retire at 57, you can roll it. If you are still working at 61, you can not roll it.
@@rogerdoger9939 are you sure about that? I'm 61 and setting that rollover up. (have to wait 7 days after setting up the transfer info... ugh!)
What do you think of investing it in a mutual fund such as Franklin Income Fund?
Great question. There wouldn't be a simple answer to this. But, feel welcome to schedule an appointment with us to talk about it.
hawsfederaladvisors.com/work-with-us/
Franklin Income A Fund? FKIQX has 0.71% Expense Ratio and 3.75% Front Load. Yikes!
So what’s the best way? An IRA ? Should we leave some money in the TSP when we money to IRA?
I'm not a financial advisor, but the G fund is great when used as a cash bucket, assuming you are fine with the automatic 20% withholding for taxes. My personal preference would be to leave 4 years of expenses in the G Fund, preferably the Traditional account. Roll over everything else into your Roth IRA and Traditional IRA. Never sell when the market is down. After stocks rebound - and they will eventually rebound - you can take some of your gains and replenish your cash bucket in the G Fund.
If you move all of your funds out of TSP you will not have the option in the future of using it in the future. I plan to leave at least the requited minimum in TSP so I have options in the future.
Well here it is 5 months into retirement and I haven't gotten paid yet. 😂😂😂 Oh the incompetence of OPM.
6 month retirement transition fund. Got it...
Well, if it makes you feel better, I am in my 8th month and still waiting.
@@dj5943 You need to contact OPM.
@@pamelaproctor4637 LMAO… I am not laughing at you. I am laughing because I have called many times and they are worthless. And if OPM customer service is bad, the person processing my paperwork is even worse. I left her at least 15 to 20 voicemails and wrote her as many emails, and received no answer at all. When I called customer service, they have been very nasty and all they say is that they are working on my paperwork and to be patient… Eight months and they tell me to be patient? Lol. Thank God I was financially prepared and I can still survive for few more months, but not everyone has a year or more worth of savings to deal with this BS. You figured that after 35 years of service, OPM would treat you with a little more respect. But thank you for your message and solidarity.
It took close to 6 months for them to finalize my annuity, and I thought that was a long time. Eight months? I know it's frustrating, but I reminded myself that it was better for them to be thorough than to rush and incorrectly process another retirement. Regardless, I can't imagine why it would take that long to finalize. Certain cases do take longer to complete than others, such as if you qualify for the FERS supplement, served in the military, worked part time, etc. I wish you the best.
I am currently planning to retire at 62 which is also when I will have 10 yrs of federal service. If I roll my TSP to an IRA, at 59.5, will I incur the 10% penalty? Would it be better to leave my TSP alone and roll it when I retire?
You can not take money from TSP until you retire, unless you take a loan which obviously must be repaid. If you plan to retire at 62, there is no penalty to roll your money from TSP to an IRA
@@Yette you can withdraw at 59.5.
@@SteveF-ht9du correct
I was told the term is “transfer” not “roll over” as roll over will incur penalty, transfer will not.
The new tsp website is horrendous
hello , I am getting out of government at age of 53 with 20 years ..... can i start getting out my TSP at age of 55 without 10 % penalty fee ?
Feel free to submit your question here: app.hawsfederaladvisors.com/question-submission
This is where we get topics for future videos.
I am 57 years old and just retired 35 years in federal service. I kept my money in TSP 80% G fund and 20% L fund. Comments are welcome...
I retired recently, I have 60% in the G fund and 40% in the C.
@@kevinharris5737 How's the C fund. Have you started withdrawal yet?
Congratulations
@@gabrn66 If that's L Income Fund, you have less than 5% C Fund thus your portfolio has minimal chance for growth but great for capital preservation.
I have adjusted the portfolio allocation to 60% in G and 40% in C, and the performance has been satisfactory thus far.
So!!! Let continue with my SALES and return my INWARDS back into my STORE in PERSON ON PHONE CALL .REGARDS
Is a tsp withdrawal added to my yearly earned income for taxes?
Yea man
@@gieb6428 Thank you
Can I get back in TSP after getting out of it 15 years ago ?
I can't remember the amount but it's a minimum amount you have to leave. If I'm not mistaken, if you close it out, you can't.
@@angelacross3109 For those wondering: If TSP account drops below $200, the account is closed and they mail you a check.
Hi Dallen one question can I only transfer Roth tsp to out s.thaide different Roth IRA. Thank u.
You may transfer your Roth TSP to Roth IRA while keeping your traditional TSP balance.
@@alrocky thank you so much.
Do what your conscience suggests, their are No experts who can predict the future. Explain the cons of removing from TSP.
All you need is the S&P 500 fund.
Please do a segment on the new TSP website. It is terrible.
Thank you for your suggestion Gary! It's in the works.
The new website is fine I never have a problem with it.
You just have to play a little with it and once you figure it out you will be fine. It was very easy to set it up by following the instructions. I agree it is not very well organized but it is getting better after congress woman got involved.
I haven’t been able to revise or review my beneficiaries on the new website.
My main complaint is you cannot adjust monthly TSP payments on website. You have to call to do this. The old website allowed you to make changes online.
Mine will be rolled into my roth ira.
The withdrawal options still suck, I should be able to say how much and traditional or Roth for tax purposes, until TSP realizes this a lot of people will take all of it out.
Agree. I recommend that people only put the 5% match level into the TSP. Then contribute to an IRA/Roth IRA to the maximum. If you still have money left over, go back and contribute to the TSP.
I talked to a Financial advisor and he told me I could roll my TSP over to an IRS account after I retire without penalty. I will have 32 years and will be 57 and 10 months old. Will I still be subject to a 10%penalty?
Only when you take money out of the IRA before 59 1/2.
Sure you can roll it over with him. And he will getting fees up front and every month after that. Why would you let someone else make money off of you? Leave it in the TSP. Move to the income fund or the g fund and just let it ride. Don't take anything out unless you need it to make ends meet.
Keep it in there and apply and get the supplement. Hopefully that benefit is still there when I get to 57 1/2.
@@ponyxpress3 you don’t have to apply for the Social security supplement you get it automatically if retired and you reach MRA. Google 55 rule another way to tap TSP prior to age 59.6 without 10% penalty.
I was told that you can TRANSFER your money to an IRA…don’t select to ROLL OVER, it will incur penalties. If you leave your money in the TSP, your beneficiaries will be forced to include the payment as income on top of the income they earned. IRAs allow them to withdraw the money in increments.
I like the tsp. However, I do not like the fact that money can only be withdrawn by allocation. I would like to withdraw from the g fund now that stocks are declining. But there is no way that I am keeping my tsp 100% in g fund even though I retired in December. I may have several years to live and g fund will not come near to inflation rate. I am currently in 2030 fund (like the 60/40 allocation). Should I transfer tsp into say similar vanguard funds so that I can use the bucket approach and rebalance when necessary? I hate withdrawing funds in tsp and locking in losses when there is another way. Or is bucket approach and rebranding absolutely necessary to maintain funds long term? Thoughts, Dillon? Anyone?
Rebalancing to your desired TSP asset allocation after withdrawing from TSP account is effectively similar to withdrawing from G Fund. Otherwise transfer some TSP balance to Vanguard leaving only amount of G Fund you desire.
C Fund = VOO / VFIAX
S Fund = VXF / VEXAX
I Fund = VEA / VTMGX
F Fund = BND / VBTLX
If the TSP would allow Roth conversions, it would be perfect.
Changing your contributions from traditional TSP to Roth TSP has sorta the same effect as t-TSP to Roth TSP conversion.
@@alrocky Not really. The conversion is for all the money I have in the Traditional TSP. I contributed to that for years before switching to the Roth TSP 5 years ago.
@@billh4285 If you are not currently contributing $20,500 [or $27,00 if 50+] to Roth TSP, then increasing contributing to that max is _effectively similar_ to converting a portion of current traditional TSP account to Roth TSP.