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



Federal Employees Benefits Q &A

Do you have questions about your federal employee CSRS or FERS pension/annuity or federal employee retirement planning? Concerns about your Thrift Savings Plan (TSP) account or what about federal employee pay and leave issues?

Ask your question here.

You must Register before posting to this forum.
The Q&A forum is moderated by Ed Zurndorfer -- an expert on federal employee benefits -- and a Certified Financial Planner, chartered life underwriter and chartered financial consultant in Maryland.

Zurndorfer is also the author of several federal employee benefits guides published by Federal Employees News Digest.

Your question will be put into a message queue and submitted for review. We cannot guarantee that all questions will be answered, however any answered questions will appear below, and some will also be featured in our daily Federal Daily e-newsletter (Subscribe here). Federal Soup users should not submit replies to the questions posted, as we leave the replies for the moderator only. Any replies to questions other than the moderator will be deleted.

Please do not submit employee benefits questions to the webmaster or the forum moderator.

Note: FederalSoup.com has attempted to compile information that is as accurate and current as possible for federal employees. Federal policies, laws, regulations, statistics and addresses continually change. Therefore, no warranties are made as to the accuracy or completeness of the information presented in this column. If additional clarification or information is needed, it is suggested that competent and professional assistance be sought. Mr. Zurndorfer does not moderate other forums on FederalSoup and will not reply to general FederalSoup inquiries submitted in this Q&A forum.

Go to last post Go to first unread
#1 Posted : Wednesday, April 21, 2021 7:40:54 AM(UTC)

Rank: Groupie

Groups: Registered
Joined: 9/16/2014(UTC)
Posts: 50

Thanks: 1 times
Hi Ed,

I plan on retiring at age 57. I will have to withdraw from my TSP & IRA to do so. Since I can’t withdraw from my IRA until 59 1/2, should I roll over my IRA into my TSP? Or, should I withdraw from my TSP first & then from my IRA when I reach 59 1/2?

Here is an estimate & my plan: 500k in TSP & 500k in IRA. I need approximately 50k per year until SS kick in. (I’m aware of taxes). If I roll over everything into to TSP, I will have approximately 1 Mill. I can withdraw just the interest (6-7%) & have my 50k. I would also still have my original principal. Otherwise, I would be liquidating my principal from my (500k) TSP if I only withdraw from that first.

Make sense? I greatly appreciated your help & opinion.
#2 Posted : Sunday, April 25, 2021 11:02:00 AM(UTC)

Rank: Senior Member

Groups: Registered
Joined: 8/25/2016(UTC)
Posts: 5,554
United States
Location: Midwest

Thanks: 150 times
Was thanked: 1065 time(s) in 858 post(s)
My thoughts:

Is any of your IRA money in a Roth account? If so, you can withdraw your contributions with out penalty before ag 59 1/5. If not, consider opening a Roth and make your contributions to that until you are retired.

Where is your IRA account? Firms like Vanguard, Fidelity and Schwab have lower expenses than the TSP. Consider moving those funds to one of those companies.

Are you married? The TSP has some hurdles you need to go through to make changes to your withdrawals.

And finally, when you die, I don't feel the TSP is as favorable in transfers to your heirs as an IRA.

Good luck!
Socialist governments traditionally do make a financial mess. They always run out of other people’s money. --Margaret Thatcher
Rss Feed  Atom Feed
Users browsing this topic
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 0.197 seconds.