Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

Options
Go to last post Go to first unread
Tokan  
#1 Posted : Saturday, December 14, 2019 7:28:16 PM(UTC)

Rank: Newbie

Groups: Registered
Joined: 4/11/2009(UTC)
Posts: 2

Thanks: 1 times
Hi all. I have been reading through a lot of these and other forums, and have not yet found a direct answer to these questions.

When you retire as a federal employee, does your TSP account continue to accrue its own interest?

If so, can you limit your withdrawals only to positive interest that your TSP balance accrues each year?

Thirdly, after you retire are you still free to move your TSP balance between the different funds?

Edited by user Saturday, December 14, 2019 7:29:49 PM(UTC)  | Reason: Not specified

GoHuskers  
#2 Posted : Saturday, December 14, 2019 8:33:33 PM(UTC)

Rank: Senior Member

Groups: Registered
Joined: 1/13/2011(UTC)
Posts: 671

Was thanked: 125 time(s) in 100 post(s)
1) Yes. things will not change at all from how they were prior to retirement. Every fund performs the same for both active employees and retirees.

2) I think the only way you could do this is wait until the very end of the year and request a single withdrawal of what you calculated you earned that year. Don't believe the TSP will calculate that for you. Of course, once you reach age 70 1/2 the required minimum distribution rules will apply.

3) Yes you can. Again, retirees are treated the same as active employees in this regard.
thanks 1 user thanked for this useful post.
Tokan on 12/15/2019(UTC)
kaljor  
#3 Posted : Thursday, December 26, 2019 11:15:46 PM(UTC)

Rank: Groupie

Groups: Registered
Joined: 5/8/2009(UTC)
Posts: 83

Thanks: 2 times
Was thanked: 5 time(s) in 2 post(s)
Your question is a little hard to answer. You talk about only taking out the interest, but the only fund that earns interest is the G fund. The rest earn money by the increase in share value plus the dividends that are paid out.

If all your money is in the G Fund it wouldn't be difficult to withdraw all the interest earned in the current year in December, but the other funds will go up and down throughout the year, so there's no set time where you could do that.

And regardless of all that, the TSP will not do that figuring for you. They offer options based on the frequency you pick as to when they pay out the money. Other than that you have to make an individual request for a withdrawal.
Tokan  
#4 Posted : Friday, December 27, 2019 6:59:08 PM(UTC)

Rank: Newbie

Groups: Registered
Joined: 4/11/2009(UTC)
Posts: 2

Thanks: 1 times
Originally Posted by: kaljor Go to Quoted Post
Your question is a little hard to answer. You talk about only taking out the interest, but the only fund that earns interest is the G fund.
Yes, and the question would only apply to interest-earning funds such as the G fund. However, this would include the F fund as well, which earns higher monthly interest than the G fund.
Originally Posted by: kaljor Go to Quoted Post
And regardless of all that, the TSP will not do that figuring for you. They offer options based on the frequency you pick as to when they pay out the money. Other than that you have to make an individual request for a withdrawal.
Correct. The question was less focused on the logistics of withdrawing interest gains only and more focused on whether one is permitted to avoid touching the principal in general by only withdrawing interest gains.

GoHuskers satisfied my main concerns, but I appreciate you clarifying and also including some relevant details to the question. :)
roger.d  
#5 Posted : Tuesday, December 31, 2019 5:14:55 PM(UTC)
roger.d

Rank: Senior Member

Groups: Registered
Joined: 8/25/2016(UTC)
Posts: 3,411
United States
Location: Midwest

Thanks: 146 times
Was thanked: 803 time(s) in 629 post(s)
I do not believe you can do as you propose. I think the withdrawal amount will be taken proportionally from the funds in your account.

You can choose if they come from the triditional or Roth. But not if they come from the C or the G fund.
Learn to discipline yourself, so someone else doesn't have to
Rss Feed  Atom Feed
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.


This page was generated in 0.296 seconds.