TSP VS. IRA
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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….(read more)
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TSP has very low fees than most IRA outside.
Born 1970 or after MRA is 57 with 30 years.
I am in Palo Alto California at the VA. Lol.
Hello, got a quick question for you and hope you can address it. Let's say someone retires on December 31, 2020 and have an accrued sick leave payment that was paid on let's say January 24, 2021 or later. For tax purposes, will that payment be counted as income for 2020 or 2021? Thanks in advance for your response.
Hi Haws. Let's say I decide to draw tsp @ 55. But I want to work until my MRA of 57. Will tsp let me contribute for another two years while waiting for my fers pension?
Should I move all my money to g fund? Because of the Ukrainian war? Stock market is taking a huge hit. I'm not about to retire anytime soon. 15+ years. However I have over 300K in there.
I dont know why feds do hella overtime during their laast years it doesnt count towards FERA or CSCR does it?
I am under foreign service pension system. What are the differences between FERS and FSPS?
TSP website states that after the death of beneficiary TSP owner, his or her beneficiaries have to take lump sum distribution and cannot rollover the distribution to external IRA and will be taxed the same year. Can they open external IRA account within 90 days to take advantage of 10 year period allowed by Cares Act.
The FERS/TSP is low risk investment but after 20 years you're essentially guaranteed to be a millionaire if you're single, start at GS 11 or above, and own a basic property. Let's say you start at 35 (late), start at GS 12 making 90k a year, and after 1 year in service you buy a 1 bedroom condo (225k) at a 30 year fixed rate mortgage (3-4% interest rate). Presuming you retire at 65, you would be debt free (mortgage, student loans, etc.) and a pension worth well over a million dollars providing around 1k extra a month + social security + your individual Roth tsp. Now, if you're smart at around age 45, you would use the equity in you're property to buy a second property and turn it into a rental (or rent out that condo and use that condo as a rental) and you'll have extra cash flow. By the time you retire you can pay them both off if you live within reason. Stay out of crypto and don't give into FOMO. Work hard to be rich and plan to be a millionaire as a federal employee.
Move Traditional TSP to Traditional IRA then to a Roth IRA…
Do special pays, like STEM, incentive pays, retention pay for technical fields count towards the Top 3?
“IS THERE A BENEFIT TO WAITING UNTIL LAST DAY OF JANUARY, since it is a pay rasie”….. YES YES YES … IF you have annual leave lump sum pay, it is based on the last day that you worked. Your lump sum annual leave will be at the new year’s pay rate. If you have the whole 240 hours, that could be worth it.
Can I roll a portion of my TSP to an I Bond?
Can I move my Roth to the Roth tsp from an external account?
Thanks for those tips! I didn't know about that locality pay issue! I found that very useful.
So you can only sell back 240 hrs of Annual Leave even if you have 300 hrs currently???
Is there a requirement to convert TSP to Traditional IRA?
Another great video chalked full of information. Can you shed more light on why I wouldn't want to move my TSP to a traditional IRA at retirement for the sole purpose of making more money?
Can you do a video on withdrawing when you retire from Feds. If you decide to take installment payments, monthly, it’s not a cut & dry 20% for taxes. I had a very helpful woman who went through the process with me. She also stated since my account will not go under 10,000 in ten years, I need to take out an additional dollar amount for taxes. Also since the monthly amount is under $1720.00 per month, that additional tax amount was needed to get to the 20% . She suggested I withhold married rate with 1 allowance, then the additional amount. It was very confusing & I’m sure many will have no idea about this. Hopefully, you can give more insight on this.
Thanks for the videos. Helps Federal Employees navigate their benefits. Keep them coming.
Started FERS pension in 2017, still in TSP but would like to offer these pet peeves against staying:
a) Cannot specify which fund to take withdrawals from, e.g. L Income, unless that is my only position
b) Cannot do in house partial Roth conversions within TSP unlike my Fidelity account, and
c) Roth TSP is Not exempt from RMDs which is just plain crazy.
I am going to evaluate the Accenture improvements this summer, but I don't think the mutual fund window will convince me not to rollover TSP into Fidelity before RMDs start. I think the window fees are necessary to keep the expense ratios low for the TSP funds, but not competitive to my Fidelity IRA and brokerage accounts.
I have done a Reverse rollover from Fidelity IRA back into TSP to buy more L2065 when it started at $10,00 per share as well as to clean up any basis prior to Fidelity Roth conversions
I do believe the G fund is better than any Fidelity money market fund. It's too bad no MYGA are available from MetLife.
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