Author Topic: TSP Participants  (Read 8965 times)

Bruizer

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Re: TSP Participants
« Reply #50 on: June 06, 2017, 07:05:29 AM »
I have money in both the traditional and Roth TSP.

When I retire, I would love to be able to put Roth TSP in a Roth IRA but keep traditional in TSP.  I believe this is currently not possible with the proportional/rollover rules.

Thus, I want to move my TSP funds outside when I retire (unless the rule changes by then).  Are there any hangups in rolling over all my TSP (traditional + Roth) into separate IRA and Roth IRA accounts at the same time?  This looks feasible on the TSP-70 form but wanted to make sure.

Yes you can transfer both, if you want to keep the Traditional with TSP you can look at this work around.  Transfer all but say $1 in each account out and re-transfer the traditional back in.

If I'm not mistaken, if your balance goes below $200, they will automatically close your account and send you a check for the remaining balance.  So be careful with this.


wenchsenior

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Re: TSP Participants
« Reply #51 on: June 06, 2017, 09:44:51 AM »
I might be wrong but I think there are also restrictions on how many times you can access your TSP account to move the funds out (maybe twice)? So be sure to research that before taking any action.

sol

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Re: TSP Participants
« Reply #52 on: June 06, 2017, 10:16:37 AM »
I might be wrong but I think there are also restrictions on how many times you can access your TSP account to move the funds out (maybe twice)? So be sure to research that before taking any action.

You can make s lifetime total of two TSP withdrawals, and the second one has to liquidate your account.  Each withdrawal event can be divided up into different buckets, like a rollover, cash out, or annuity purchase.

Those of us planning to use the roth ira conversion ladder to access tsp funds prior to age 59 without paying a penalty are going to roll the tsp balance into a traditional IRA (a tax free event since they are the same type of account) and then make the annual 0% tax roth contributions from the traditional ira.

Bird In Hand

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Re: TSP Participants
« Reply #53 on: June 06, 2017, 11:02:09 AM »
Those of us planning to use the roth ira conversion ladder to access tsp funds prior to age 59 without paying a penalty are going to roll the tsp balance into a traditional IRA (a tax free event since they are the same type of account) and then make the annual 0% tax roth contributions from the traditional ira.

Apologies if this was covered elsewhere, but can you elaborate on what you mean by "0% tax roth contributions"?  I take it to mean you're paying zero tax on the conversion from traditional IRA to Roth, but I'm not sure how you intend to achieve that.  Unless you mean that you'll be in an effective 0% tax bracket (e.g., living off of after-tax investments) and you'll convert up to the amount that is offset by your standard (or itemized) deduction.
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sol

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Re: TSP Participants
« Reply #54 on: June 06, 2017, 11:35:54 AM »
Apologies if this was covered elsewhere, but can you elaborate on what you mean by "0% tax roth contributions"?  I take it to mean you're paying zero tax on the conversion from traditional IRA to Roth, but I'm not sure how you intend to achieve that.  Unless you mean that you'll be in an effective 0% tax bracket (e.g., living off of after-tax investments) and you'll convert up to the amount that is offset by your standard (or itemized) deduction.

Yes, I mean each year's roth conversion from the traditional IRA will be done in the zero percent tax bracket, which effectively extends up to about $50k/yr for my family of five, after exemptions and deductions and refundable tax credits. 

I will start the annual roth pipeline after retiring from my salaried job, so I will have no other taxable income, and then four years and one day later (five calendar years) the roth contribution can be withdrawn without penalty, effectively giving access to TSP funds at zero tax and zero penalty at age 45 (if I retired at 40).

In the meantime, you need to have at least four years and one day of living expenses available to support your family until the first rung of the roth ladder becomes available.  For us, that includes our taxable investment account, a few months of cash cushion in a savings account, all of our combined roth ira contributions thus far (which you can always access tax and penalty free) and a bunch of extractable equity and/or cash flow from rental properties.  Plus the ability to pull down a little post-retirement income from side gigs if necessary, but I don't think it will be.

kendallf

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Re: TSP Participants
« Reply #55 on: June 06, 2017, 07:04:05 PM »
Apologies if this was covered elsewhere, but can you elaborate on what you mean by "0% tax roth contributions"?  I take it to mean you're paying zero tax on the conversion from traditional IRA to Roth, but I'm not sure how you intend to achieve that.  Unless you mean that you'll be in an effective 0% tax bracket (e.g., living off of after-tax investments) and you'll convert up to the amount that is offset by your standard (or itemized) deduction.

Yes, I mean each year's roth conversion from the traditional IRA will be done in the zero percent tax bracket, which effectively extends up to about $50k/yr for my family of five, after exemptions and deductions and refundable tax credits. 

I will start the annual roth pipeline after retiring from my salaried job, so I will have no other taxable income, and then four years and one day later (five calendar years) the roth contribution can be withdrawn without penalty, effectively giving access to TSP funds at zero tax and zero penalty at age 45 (if I retired at 40).

In the meantime, you need to have at least four years and one day of living expenses available to support your family until the first rung of the roth ladder becomes available.  For us, that includes our taxable investment account, a few months of cash cushion in a savings account, all of our combined roth ira contributions thus far (which you can always access tax and penalty free) and a bunch of extractable equity and/or cash flow from rental properties.  Plus the ability to pull down a little post-retirement income from side gigs if necessary, but I don't think it will be.

Note bolded section above; those of us who will retire with pensions will have taxable income, lessening our available "bucket" of income below the 0% line.  In my case, my wife will probably still be working as well.

I need to run the numbers to determine whether a Roth ladder makes sense at all, figuring out my likely tax brackets along the way.  We need a calculator; where's Jeremy (GoCurryCracker) to do the charts and equations for us?!

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yuka

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Re: TSP Participants
« Reply #56 on: June 06, 2017, 07:13:30 PM »
Sorry if this is an astoundingly dumb question, but how are people getting matches? Is that something separate you have to sign up for? My understanding was that matches had ceased to happen quite a while ago.

L.A.S.

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Re: TSP Participants
« Reply #57 on: June 06, 2017, 07:21:41 PM »
Sorry if this is an astoundingly dumb question, but how are people getting matches? Is that something separate you have to sign up for? My understanding was that matches had ceased to happen quite a while ago.

my understanding is that it is automatic.

You get an automatic 1% contribution from Uncle Sam.

Then you are matched 1:1 for the first 3% of pay you set aside and contribute.
Then you get a 1/2 match for next 2% you set aside.

Above 5% of pay, there is no match.

https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/typesOfContributions.html

One Noisy Cat

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Re: TSP Participants
« Reply #58 on: June 06, 2017, 08:03:56 PM »
90% here. Retired two years ago after 19 years. (First year couldn't contribute). Haven't touched TSP or Roth and take out only small percentage of other two IRAs. Life is beautiful

kimmarg

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Re: TSP Participants
« Reply #59 on: June 06, 2017, 08:08:07 PM »
Sorry if this is an astoundingly dumb question, but how are people getting matches? Is that something separate you have to sign up for? My understanding was that matches had ceased to happen quite a while ago.

You get an automatic 1% (assuming you're under FERS... if you're still CSRS retire already!) Then they match 50% up to 4 or 5%... I've always contributed over this.

In a happy dance I had to go look up how many pay periods were left this year to make sure my TSP contributions doesn't go over the max. <happy dance> I've never maxed it before!

FIREySkyline

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Re: TSP Participants
« Reply #60 on: June 06, 2017, 08:43:05 PM »
I'm in the second tier, but I'm only 5.75 yrs in, and I just heard about and started my FIRE plans last month. Maxing out my TSP, I expect to be over $250k in 5 yrs. If more people were FIREy, 5M wouldn't seem crazy.

Matching works like this:

1% - Automatic (0% Contribution)
2% - 1% Contribution
3% - 2% Contribution
4% - 3% Contribution
4.5% - 4% Contribution
5% - 5% Contribution

i.e. the last percent is matched in half percent increments to make it so you have to put in 5 to get 5 even though 1 is automatic.
« Last Edit: June 06, 2017, 08:48:56 PM by FIREySkyline »

neverrun

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Re: TSP Participants
« Reply #61 on: June 07, 2017, 05:07:02 AM »
Yuka,

if you are under the current military system there is no match.  Starting in 2018 (I believe) military members are being moved to a new system similar to FERS a slightly lower pension (45% vs 50% after 20 years I think but don't quote me) but the same match 5% if one contributes 5% to the TSP.

ETA:  someone at my agency "celebrated" 50 years with the G a month or so ago I was horrified.

L.A.S.

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Re: TSP Participants
« Reply #62 on: June 07, 2017, 05:52:24 AM »
Sorry if this is an astoundingly dumb question, but how are people getting matches? Is that something separate you have to sign up for? My understanding was that matches had ceased to happen quite a while ago.

You get an automatic 1% (assuming you're under FERS... if you're still CSRS retire already!) Then they match 50% up to 4 or 5%... I've always contributed over this.

In a happy dance I had to go look up how many pay periods were left this year to make sure my TSP contributions doesn't go over the max. <happy dance> I've never maxed it before!

In 2017, if someone contributes for the whole year 26 pay periods and wants to max the standard TSP contribution the amount should be set at $693.  The last PP will be slightly less than this to account for reaching the annual 18K cap in the last PP -- this is automatic.  This will ensure maximum matching.  If making catch-up contributions that amount should be set at $231.

If someone just upped their contributions for the year and wants to max: then for the remainder of the year, subtract from 18,000 contributions already made.  Then divide that amount by the number of remaining PP in 2017 (need to consult pay schedule: these are PP which are to be paid in 2017; cannot just go by PP number or leave year).  Round that amount up to the next dollar.  That is the amount for each PP for the remainder of the year.   Go to your agency's HR (or myEPP if using that system) and set the TSP withdrawal by dollar amount.  Lastly, set a calendar reminder for the Monday after Thanksgiving to review your contribution amount for 2018 in case adjustment is needed for the new year, or if the max contribution amount is upped.

Bird In Hand

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Re: TSP Participants
« Reply #63 on: June 07, 2017, 07:05:20 AM »
Yes, I mean each year's roth conversion from the traditional IRA will be done in the zero percent tax bracket, which effectively extends up to about $50k/yr for my family of five, after exemptions and deductions and refundable tax credits.

Got it -- thank you!
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SomedayStache

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Re: TSP Participants
« Reply #64 on: June 12, 2017, 03:07:02 PM »
HR is the one part of the federal government that gives all of the other parts a bad name.

I deal with the Sacramento office.  I have horror stories.

Here's my horror story that resulted from switching from one DoD branch of service to another.

September 2008 I opened a ticket because I wasn't receiving matching government contributions on my TSP contributions after moving to a new agency.

For the next year I call the BEST (DoD Benefits and Entitlements System) line weekly, and wait 30 minutes to speak with a benefits counselor.  Every week they tell me they are waiting on information from my base.

September of 2009 (ONE WHOLE YEAR LATER) I finally reach someone willing to take action on the BEST team.  The counselor agrees that I should have been receiving matching contributions this whole time.  She seemed skeptical that I wasn't, but conceded once I faxed her a TSP statement.  Upon receipt of the fax I was told I should be reimbursed for the missing year of government contributions. 

Next pay period I eagerly look for the missing contributions.  They weren't there.  Instead my entire year's worth of personal TSP contributions (27 pay periods worth) were removed from my TSP account and paid out as lump-sum taxable income on my paycheck.  <I eventually discover this is because someone fat-fingered my data entry and made it look like my job position was ineligible to contribute to the TSP at all>

Now instead of weekly phone calls to BEST I start calling DFAS weekly. 

Two months later (November 2009) I finally receive a letter from DFAS which allows me to retroactively contribute to the TSP account with retroactive government contributions.  Only problem is that because the lump-sum paycheck deposit was taxable I don't have the cash on hand to contribute the whole amount (this was also long before I discovered MMM or knew much of anything about finances.  Our finances were pretty rocky in those days).  I elect to have the missing contributions from 27 pay periods withheld over a period of 54 pay periods.   

I then spend the next 54 pay periods checking the TSP contributions like a hawk.  There was one pay period that the government portion was not properly deposited (due to an error) and I had to call in another ticket.

Finally in early 2012 I made the last retroactive TSP contribution and my ordeal was over.  This whole shit show caused me to distrust the TSP and led to me only contributing the minimum 5% for years. 

Accidental Fire

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Re: TSP Participants
« Reply #65 on: June 23, 2017, 03:19:28 PM »
This just in.... proposals to give us TSP folks more options.  And check it out, sponsored by a Dem and a Republican - maybe all of them don't want to kill each other!!

https://www.fedsmith.com/2017/06/23/legislation-introduced-allow-multiple-withdrawals-tsp/

wenchsenior

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Re: TSP Participants
« Reply #66 on: June 23, 2017, 04:12:44 PM »
And it's something they might actually pass because it affects them!

More withdrawal options would be awesome.

Accidental Fire

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Re: TSP Participants
« Reply #67 on: September 06, 2017, 02:08:30 PM »
For all my fellow Feds, this came out today

https://www.fedsmith.com/2017/09/06/much-need-savings-want-x-per-year-retirement-not-run-money/

For a 'mainstream' article about retirement, it does better than most IMHO. They reference the 4% rule and don't put many of the wacky and quizzical assumptions about retirement that other articles fall victim to.  What they don't mention is a TSP withdrawal strategy and the +/- of taking out TSP money too early or deferring.

wenchsenior

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Re: TSP Participants
« Reply #68 on: September 13, 2017, 05:10:19 PM »
WOO HOO! Finally cracked the 98th percentile...502K as of close of business yesterday.

(Ok, the market is free to correct now LOL).

dude

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Re: TSP Participants
« Reply #69 on: September 14, 2017, 07:53:58 AM »
I might be wrong but I think there are also restrictions on how many times you can access your TSP account to move the funds out (maybe twice)? So be sure to research that before taking any action.

You can make s lifetime total of two TSP withdrawals, and the second one has to liquidate your account.  Each withdrawal event can be divided up into different buckets, like a rollover, cash out, or annuity purchase.


That's hopefully about to change.  Bipartisan bills in both the House and Senate have been introduced to allow more withdrawals.

dude

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Re: TSP Participants
« Reply #70 on: September 14, 2017, 07:58:44 AM »
WOO HOO! Finally cracked the 98th percentile...502K as of close of business yesterday.

(Ok, the market is free to correct now LOL).

Congrats!  Closing in on $700k myself. Goddamn market needs to correct SOON, but the economy is humming along (at great expense to our planet's health, I might add), so it's looking more and more like I will retire in an overvalued market 1 year, 7 months and 23 days from now . . .

But hey, nobody knows what will happen between now and then.

Drifterrider

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Re: TSP Participants
« Reply #71 on: September 14, 2017, 08:22:36 AM »
WOO HOO! Finally cracked the 98th percentile...502K as of close of business yesterday.

(Ok, the market is free to correct now LOL).

Congrats!  Closing in on $700k myself. Goddamn market needs to correct SOON, but the economy is humming along (at great expense to our planet's health, I might add), so it's looking more and more like I will retire in an overvalued market 1 year, 7 months and 23 days from now . . .

But hey, nobody knows what will happen between now and then.

I'm going to beat you out the door :)

Eligible 8 Jan, 2019.

Although, I'll hold off on that until my house sells.  Have already started looking at RVs (on line).

Slow2FIRE

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Re: TSP Participants
« Reply #72 on: September 14, 2017, 12:43:42 PM »
I might be wrong but I think there are also restrictions on how many times you can access your TSP account to move the funds out (maybe twice)? So be sure to research that before taking any action.

You can make s lifetime total of two TSP withdrawals, and the second one has to liquidate your account.  Each withdrawal event can be divided up into different buckets, like a rollover, cash out, or annuity purchase.


That's hopefully about to change.  Bipartisan bills in both the House and Senate have been introduced to allow more withdrawals.

That would be great.

I'm wondering how it goes with the other changes they want to institute for us:

Pension on high 5 instead of high 3
No COLA for FERS pension
making all Feds pay either 4.4% or 6% towards retirement (increasing by 1% per year until the final total is reached)
Making the G fund have the same returns as short term Treasuries (I think that takes it from about 2.6% down to about 1%)

There were some other rumors that I can't recall off the top of my head (something about firebombing the pension and instead increasing the TSP match to 10% and other similar options).

Drifterrider

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Re: TSP Participants
« Reply #73 on: September 14, 2017, 12:49:53 PM »
I'm wondering how it goes with the other changes they want to institute for us:

Pension on high 5 instead of high 3
No COLA for FERS pension
making all Feds pay either 4.4% or 6% towards retirement (increasing by 1% per year until the final total is reached)
Making the G fund have the same returns as short term Treasuries (I think that takes it from about 2.6% down to about 1%)

There were some other rumors that I can't recall off the top of my head (something about firebombing the pension and instead increasing the TSP match to 10% and other similar options).

As long as the Congress is subject to the same rules, I don't see much major changes in the near future.  Self preservation and all that.

I would like for them to make changes to TSP so I can draw it periodically.  I don't want it all at once (massive tax bill) and I don't need it all at once.

wenchsenior

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Re: TSP Participants
« Reply #74 on: September 14, 2017, 12:58:59 PM »
I might be wrong but I think there are also restrictions on how many times you can access your TSP account to move the funds out (maybe twice)? So be sure to research that before taking any action.

You can make s lifetime total of two TSP withdrawals, and the second one has to liquidate your account.  Each withdrawal event can be divided up into different buckets, like a rollover, cash out, or annuity purchase.


That's hopefully about to change.  Bipartisan bills in both the House and Senate have been introduced to allow more withdrawals.

That would be great.

I'm wondering how it goes with the other changes they want to institute for us:

Pension on high 5 instead of high 3
No COLA for FERS pension
making all Feds pay either 4.4% or 6% towards retirement (increasing by 1% per year until the final total is reached)
Making the G fund have the same returns as short term Treasuries (I think that takes it from about 2.6% down to about 1%)

There were some other rumors that I can't recall off the top of my head (something about firebombing the pension and instead increasing the TSP match to 10% and other similar options).
 

Pretty much all of those changes have been proposed since the 1980s every single time the GOP gets control of Congress, and sometimes even when the Dems control it.  So far it hasn't happened. It doesn't mean none of them will ever pass of course (increased pension contributions are now a reality for new hires), but I'll believe these things when I see them.

fattest_foot

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Re: TSP Participants
« Reply #75 on: September 14, 2017, 02:04:34 PM »
I'd be all for scrapping FERS and going to a 10% match. Where can I sign up for that?!

Inflation is going to erode a massive portion of my FERS (estimating it at 17 years of service, but also 17 years before MRA). I'd rather get something tangible out of it in present dollars.

Catbert

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Re: TSP Participants
« Reply #76 on: September 14, 2017, 03:06:01 PM »
I'm wondering how it goes with the other changes they want to institute for us:





I would like for them to make changes to TSP so I can draw it periodically.  I don't want it all at once (massive tax bill) and I don't need it all at once.

I agree that it would be great to take out money from TSP periodically.  But if it doesn't come to pass, remember that you can roll to an IRA and avoid massive tax bill.

Drifterrider

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Re: TSP Participants
« Reply #77 on: September 15, 2017, 05:39:38 AM »
I'm wondering how it goes with the other changes they want to institute for us:





I would like for them to make changes to TSP so I can draw it periodically.  I don't want it all at once (massive tax bill) and I don't need it all at once.

I agree that it would be great to take out money from TSP periodically.  But if it doesn't come to pass, remember that you can roll to an IRA and avoid massive tax bill.

Yes but I like the low fees of the TSP.  I support being able to eat your cake AND having it too :)

neverrun

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Re: TSP Participants
« Reply #78 on: September 15, 2017, 05:46:18 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

Bruizer

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Re: TSP Participants
« Reply #79 on: September 15, 2017, 06:47:00 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

We already have the monthly withdrawals option, but you can only change the amount once per year during the open season, and it doesn't go into effect until the new calendar year.  I would like to be able to change the monthly amount more often than that.


Basenji

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Re: TSP Participants
« Reply #80 on: September 15, 2017, 07:53:38 AM »
P2F

fattest_foot

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Re: TSP Participants
« Reply #81 on: September 15, 2017, 08:23:36 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

We already have the monthly withdrawals option, but you can only change the amount once per year during the open season, and it doesn't go into effect until the new calendar year.  I would like to be able to change the monthly amount more often than that.

I think you're talking about trades, no withdrawals?

Right now the TSP only allows 2 withdrawals. You get one free one, and the second has to be your account remainder.

simonsez

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Re: TSP Participants
« Reply #82 on: September 15, 2017, 08:41:46 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

We already have the monthly withdrawals option, but you can only change the amount once per year during the open season, and it doesn't go into effect until the new calendar year.  I would like to be able to change the monthly amount more often than that.

I think you're talking about trades, no withdrawals?

Right now the TSP only allows 2 withdrawals. You get one free one, and the second has to be your account remainder.
https://www.tsp.gov/PlanParticipation/LoansAndWithdrawals/withdrawals/withdrawingAccount.html
https://www.tsp.gov/PlanParticipation/LoansAndWithdrawals/withdrawals/changingPayments.html

You are both correct.  The monthly payments have to meet minimum requirements and are intended to pay out all of your account over the rest of your lifetime but you do get to change them once a year with Form TSP-73.  Once you start monthly payments, you cannot end them unless you do a total withdrawal (From TSP-79).  If you do lump sum withdrawals (non-recurring), then you only get the two currently.

Bruizer

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Re: TSP Participants
« Reply #83 on: September 15, 2017, 08:56:47 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

We already have the monthly withdrawals option, but you can only change the amount once per year during the open season, and it doesn't go into effect until the new calendar year.  I would like to be able to change the monthly amount more often than that.

I think you're talking about trades, no withdrawals?

Right now the TSP only allows 2 withdrawals. You get one free one, and the second has to be your account remainder.
https://www.tsp.gov/PlanParticipation/LoansAndWithdrawals/withdrawals/withdrawingAccount.html
https://www.tsp.gov/PlanParticipation/LoansAndWithdrawals/withdrawals/changingPayments.html

You are both correct.  The monthly payments have to meet minimum requirements and are intended to pay out all of your account over the rest of your lifetime but you do get to change them once a year with Form TSP-73.  Once you start monthly payments, you cannot end them unless you do a total withdrawal (From TSP-79).  If you do lump sum withdrawals (non-recurring), then you only get the two currently.


Yes. If you elect the full withdrawal, you could change your monthly withdrawal to a minimum of $25 during the open season if you wanted, effectively limiting your withdrawals to $300 annually until you have to take the RMD at 70 1/2.


kendallf

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Re: TSP Participants
« Reply #84 on: September 15, 2017, 08:59:54 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

We already have the monthly withdrawals option, but you can only change the amount once per year during the open season, and it doesn't go into effect until the new calendar year.  I would like to be able to change the monthly amount more often than that.

I think you're talking about trades, no withdrawals?

Right now the TSP only allows 2 withdrawals. You get one free one, and the second has to be your account remainder.

No, this is correct.  Currently you are allowed one partial and then a final "full withdrawal", but the full withdrawal can actually be any combination of three options: single payment, annuity purchase, or monthly payment.  If you elect a monthly payment, you may change its amount annually during open season.  See this booklet, page 7 for details:

https://www.tsp.gov/PDF/formspubs/tspbk02.pdf

Edit: several others with the same thought.  Details are in the booklet linked here.
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dude

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Re: TSP Participants
« Reply #85 on: September 15, 2017, 09:24:22 AM »
I'd be all for scrapping FERS and going to a 10% match. Where can I sign up for that?!

Inflation is going to erode a massive portion of my FERS (estimating it at 17 years of service, but also 17 years before MRA). I'd rather get something tangible out of it in present dollars.

No thanks, I'll take the FERS pension, COLA-Lite and all, over a 10% match all day long.  Its HIGHLY doubtful that 10% match would come with a salary increase, and it would take a rather massive increase to offset the employer contribution to your FERS pension, and if no matter the match increase, you are still pegged at the IRS limit for contributions.

neverrun

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Re: TSP Participants
« Reply #86 on: September 16, 2017, 05:27:28 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

We already have the monthly withdrawals option, but you can only change the amount once per year during the open season, and it doesn't go into effect until the new calendar year.  I would like to be able to change the monthly amount more often than that.

Nope I mean be able to make a decision on partial withdraws on a monthly basis, not equal payments every month.  And decide for no withdraw if I don't want one month/quarter.

Drifterrider

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Re: TSP Participants
« Reply #87 on: September 18, 2017, 11:40:35 AM »
I just hope they don't make it unlimited withdraws because that would add to expenses.  I'd be in favor of quarterly or monthly withdraws though.

We already have the monthly withdrawals option, but you can only change the amount once per year during the open season, and it doesn't go into effect until the new calendar year.  I would like to be able to change the monthly amount more often than that.

I think you're talking about trades, no withdrawals?

Right now the TSP only allows 2 withdrawals. You get one free one, and the second has to be your account remainder.

No, this is correct.  Currently you are allowed one partial and then a final "full withdrawal", but the full withdrawal can actually be any combination of three options: single payment, annuity purchase, or monthly payment.  If you elect a monthly payment, you may change its amount annually during open season.  See this booklet, page 7 for details:

https://www.tsp.gov/PDF/formspubs/tspbk02.pdf

Edit: several others with the same thought.  Details are in the booklet linked here.

That I didn't know.  I like the idea of monthly withdrawals so I can predict my tax burden better.  I intend to spend what I've saved; not leave it for others.

Cork

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Re: TSP Participants
« Reply #88 on: September 19, 2017, 10:45:59 PM »
I'd be all for scrapping FERS and going to a 10% match. Where can I sign up for that?!

Inflation is going to erode a massive portion of my FERS (estimating it at 17 years of service, but also 17 years before MRA). I'd rather get something tangible out of it in present dollars.

Gosh that would be a dream come true.  Even if it is just for new hires, might be able to opt in for current employees.   
Prost!

sol

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Re: TSP Participants
« Reply #89 on: September 19, 2017, 10:56:02 PM »
I'd be all for scrapping FERS and going to a 10% match. Where can I sign up for that?!

There's a crossover point.  Before about ten or fifteen years of civil service, the federal pension is so worthless that I would also endorse scrapping it for a 10% match.  But for people who put in 30 years and retire at normal retirement age, it's a good deal.

In the case of someone who becomes a federal employee as a teenager and works until their 60s, the annual increase in the net present value of the pension in the final year far exceeds their annual paycheck.  That person actually makes more money delaying retirement for a year to accrue an extra year's worth of pension than they make from their income on which the pension amount is based.

Unfortunately, the reverse is also true.  Every year "early" you retire costs you an enormous amount of pension.  For real early retirees in their 30s or even early 40s, this effectively makes the fedeal pension a huge rip off.  We'd all be much better off just getting our pension contributions paid to us as part of our taxable income each year.  We're just subsidizing all of the people who tough it out until the end.

sparkytheop

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Re: TSP Participants
« Reply #90 on: September 19, 2017, 11:05:51 PM »
Yes!  I just hit less than $99k away from the 98th percentile!  Tomorrow it will probably be $101k again, but for the first time, I've crossed that $400k line (it had been "kissing" that line, but not breaking it, for weeks).

dude

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Re: TSP Participants
« Reply #91 on: September 20, 2017, 08:03:20 AM »
I'd be all for scrapping FERS and going to a 10% match. Where can I sign up for that?!

There's a crossover point.  Before about ten or fifteen years of civil service, the federal pension is so worthless that I would also endorse scrapping it for a 10% match.  But for people who put in 30 years and retire at normal retirement age, it's a good deal.


For people in FF/LEO positions, it's a stupendous deal. You not only get to retire in 20 years (if you hit the MRA), but you get the SRS from that point on until you turn 62 (free and clear until 57, subject to the SS earnings test after that), and the 1.7 FERS multiplier -- which is roughly 34% of your High-3 average for a 20-year LEO career (additional 1% for each year after that, or bought-back military time). Couple with FEHB for life at the same rate as active FERS employees, it's a FIREe's dream situation, really.

HawkeyeNFO

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Re: TSP Participants
« Reply #92 on: September 20, 2017, 01:31:57 PM »
Retiring on the first day of next month from the USN.  After about 16 years of non-matched contributions, I am in the 98th percentile.

wenchsenior

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Re: TSP Participants
« Reply #93 on: September 20, 2017, 02:31:36 PM »
Retiring on the first day of next month from the USN.  After about 16 years of non-matched contributions, I am in the 98th percentile.

Nice!

marion10

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Re: TSP Participants
« Reply #94 on: September 20, 2017, 04:13:37 PM »
Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government   
Tuesday, October 3, 2017 – 2:00 pm to 4:00pm
 
The U.S. Securities and Exchange Commission (SEC) and the Federal Retirement Thrift Investment Board are co-sponsoring a program titled “Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government” on  Tuesday, October 3, 2017, 2:00pm-4:00pm EST at the SEC, 100 F Street, NE, Washington, DC 20549 and via public webcast.  This event is open to all federal employees and members of the uniformed services.
 
This program is designed for federal employees and members of the uniformed services who may be considering retiring or leaving Federal Service.  The program will cover TSP distribution options, withdrawals and roll-outs.  Discussion will also cover fees, the common red flags of investment fraud, how to check out a financial professional, and questions to ask when thinking about moving funds from the TSP. 
 
You can attend this program either in person or via webcast:
 
•   Go to this link on October 3, 2017, at 2pm to attend the program via webcast: https://www.sec.gov/video/live/470375936-tsp-presentation-100317.htm
 
•   Register here REGISTRATION to attend the program in person at the U.S. Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549 (adjacent to Union Station):  In-person attendees must complete the information provided in the link and forward it to the SEC by Friday, September 22, 2017.  This includes providing in advance your full name, telephone number, and a photo for security purposes.  In addition, you must arrive at the SEC by 1:30 pm the day of the event to go through the security process.  The in-person registration cutoff date is Friday, September 22, 2017.

Monkey Uncle

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Re: TSP Participants
« Reply #95 on: September 22, 2017, 04:24:14 AM »
I'd be all for scrapping FERS and going to a 10% match. Where can I sign up for that?!

There's a crossover point.  Before about ten or fifteen years of civil service, the federal pension is so worthless that I would also endorse scrapping it for a 10% match.  But for people who put in 30 years and retire at normal retirement age, it's a good deal.

In the case of someone who becomes a federal employee as a teenager and works until their 60s, the annual increase in the net present value of the pension in the final year far exceeds their annual paycheck.  That person actually makes more money delaying retirement for a year to accrue an extra year's worth of pension than they make from their income on which the pension amount is based.

Unfortunately, the reverse is also true.  Every year "early" you retire costs you an enormous amount of pension.  For real early retirees in their 30s or even early 40s, this effectively makes the fedeal pension a huge rip off.  We'd all be much better off just getting our pension contributions paid to us as part of our taxable income each year.  We're just subsidizing all of the people who tough it out until the end.

Tell me about it.  I've calculated the value of my FERS pension when I finally reach FRA and it starts adjusting for inflation.  I'm planning to leave federal service in my late 40's with a little under 15 years of service.  My pension will be worth less than $7,000/yr in today's dollars. 
"Take this job and shove it" - David Allan Coe