TSP Center

With the Modernization Act coming around next year I have an idea to share of how to trade individual stocks with your TSP money and still receive your monthly amount based on life expectancy (penalty free for those under 59.5) without having to keep your money in the TSP. For those of us in the category of only a one time withdrawal, which is about to change. If the TSP establishes your life expectancy amount once a year based on your age and account balance, which I know they do, it stays that monthly amount even if your balance changes drastically, until the next years evaluation. I know this through divorce. So, after it is established and say it is $1000/mo you could rollover your balance into a Fidelity Rollover IRA, leaving $12,100 in the TSP, Trade throughout the year at Fidelity, then roll back in to your TSP just prior to the date to once again re-establish your monthly life expectancy amount...and so on, and so on...

Does my theory work or will the TSP Modernization people read this and refigure life expectancy on a different formula???

What do ya think?

I'm assuming by this time you would have retired, as you are talking about making withdrawals. If that assumption is correct, I do not believe you will be able to add funds to your TSP after you take them out. You will only be able to make withdrawals in the form of a roll-over, annuity, lump sum.

If I am leaving anything out, someone else please feel free to add/correct me.

No, I have been told by TSP you can roll a Traditional IRA into your TSP. TSP form 60

rcevans wrote:No, I have been told by TSP you can roll a Traditional IRA into your TSP. TSP form 60

But can you do it after retirement?

You would be out of the market for several weeks each year but I think it is possible with new rules but I would read them real carefully when they come out before proceeding