Federal Employee Computation Calculator (With Agency Match)

[Aitrus]

I've got a silly question. Once you're retired and receiving TSP payouts, is it possible to still put more money back in if you have excess from other sources? The reason I ask is that some folks end up having more money in retirement than they need. For example:

Pre-retirement salary between both spouses: $100,000
Pre-retirement standard of living: $60,000

Primary earner only:
Pre-retirement income: $60,000
Retired FERS: $23,000
ANG retirement: $20,000
Social Security: $27,000
Secondary earner: assume anything he/she has coming in retirement is just icing on the cake.

In the above situation, the couple doesn't need to withdraw any TSP, and may have extra left over, especially if the lower earning spouse has a pension or extra funds coming in from a hobby/job. Can that FERS member put extra money he/she doesn't currently need into TSP while in retirement?

[Navig8tor]

I've got a silly question. Once you're retired and receiving TSP payouts, is it possible to still put more money back in if you have excess from other sources? The reason I ask is that some folks end up having more money in retirement than they need. For example:

Pre-retirement salary between both spouses: $100,000
Pre-retirement standard of living: $60,000

Primary earner only:
Pre-retirement income: $60,000
Retired FERS: $23,000
ANG retirement: $20,000
Social Security: $27,000
Secondary earner: assume anything he/she has coming in retirement is just icing on the cake.

In the above situation, the couple doesn't need to withdraw any TSP, and may have extra left over, especially if the lower earning spouse has a pension or extra funds coming in from a hobby/job. Can that FERS member put extra money he/she doesn't currently need into TSP while in retirement?

TSP website indicates you can roll traditional IRA's into your TSP account after retirement (to consolidate accounts). I'd say it's probably a no-go on putting in extra money that you don't need. I see where you're going with that train of thought though...I'll be in the same boat eventually.

I just asked "my guy" that question last week. "Where can I go with extra money that I can't get into the TSP or my ROTH IRA." He said, "Your taxable account with us."

Thanks CAPT Obvious, but I was looking for some other investment vehicle that's not automatically putting more of my money in your pocket. They don't want you to put it in a low interest bank account, they'd rather you drop it into your taxable account because the management fees amount to 1% per year of your portfolio balance.

I may put excess in my savings account for a year or s, and then open up an index fund account that mimics the TSP. Just keep building that account until....whenever.

[evilanne]

Aitrus,
Money put in any IRA or retirement account has to be earned income, so in your example the answer would be no unless one spouse is still working. TSP allows you to transfer certain types of accounts into your account.
Even if you don't need that much money and don't want to draw from your TSP you are likely going to have a bigger issue at 70.5 when RMDs kick in. It is possible to do conversions from traditional to Roth IRA and you can used the extra money to pay the taxes that will reduce the RMD issue. Unfortunately, you cannot do this within TSP...you would need to do a partial rollover to IRA prior to taking any distributions (still trying to figure out how much I should roll over IOT gradually convert to Roth and where to roll it over to).

You may want to look at Long Term Care Insurance if that isn't already factored into you budget.
Other options...save it, spend it or give it away.

[Winner]

Thanks for the info folks. Every little bit helps. I mastered the military side of the TSP, now I'm a newb on the federal side.

Another thing I'm looking into is merging my Uniformed account with my FERS account; however, I don't know that is a good reason for doing that. About 1/3 of my uniformed account was earned in a combat zone and is non-taxable. According to the TSP, the non-taxable portion cannot be merged into a FERS account. That said, I'd still have two TSP accounts anyway, so, what's the point of merging the remaining 2/3 into a FERS account??

Anyone have any experience with merging accounts??

TSP Board specialist yesterday recommended not to merge just in case an emergency occur while you are employ as FERS since you can't withdrawal from your TSP account. On the other hand with your Uniformed account you can withdrawal anytime pay 10% before 59 1/2 for emergency or what ever reason while you are still employ as FERS.

[twinkc]

Aitrus, Keep in mind the 5% or 10% reduction to your annuity, depending upon whether you want to provide 25% or 50% (respectively) survivor benefits to your spouse or ex-spouse. Also, most importantly, if your spouse isn't named as a recipient then he/she will not be eligible to receive your FEHB (health insurance) benefits. In other words, if you want your spouse to be covered under your federal health insurance policy when you retire, you must provide them survivor benefits --which will reduce your annuity by another 5% or 10% (depending on share of benefits).

[JudgeTina]

Aitrus,
Money put in any IRA or retirement account has to be earned income, so in your example the answer would be no unless one spouse is still working. TSP allows you to transfer certain types of accounts into your account.
Even if you don't need that much money and don't want to draw from your TSP you are likely going to have a bigger issue at 70.5 when RMDs kick in. It is possible to do conversions from traditional to Roth IRA and you can used the extra money to pay the taxes that will reduce the RMD issue. Unfortunately, you cannot do this within TSP...you would need to do a partial rollover to IRA prior to taking any distributions (still trying to figure out how much I should roll over IOT gradually convert to Roth and where to roll it over to).

You may want to look at Long Term Care Insurance if that isn't already factored into you budget.
Other options...save it, spend it or give it away.

Good info. Thanks.

[Aitrus]

Good points, guys. Thanks.

[SeattleSid]

Agree.

[Dillon]

Good info.

[FilthyFred]

Aitrus,
Money put in any IRA or retirement account has to be earned income, so in your example the answer would be no unless one spouse is still working. TSP allows you to transfer certain types of accounts into your account.
Even if you don't need that much money and don't want to draw from your TSP you are likely going to have a bigger issue at 70.5 when RMDs kick in. It is possible to do conversions from traditional to Roth IRA and you can used the extra money to pay the taxes that will reduce the RMD issue. Unfortunately, you cannot do this within TSP...you would need to do a partial rollover to IRA prior to taking any distributions (still trying to figure out how much I should roll over IOT gradually convert to Roth and where to roll it over to).

You may want to look at Long Term Care Insurance if that isn't already factored into you budget.
Other options...save it, spend it or give it away.

SPEND IT!!!!

[Yuri]

Roger that.

[Zulu]

Glad to be nearing retirement.

[RollsRoyce]

Nice, thanks.

[14K]

Great work.

[Viper]

Well done.