TSP modernization act
Moderator: Aitrus
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TSP modernization act
I know that the tsp modernization act will allow multiple withdrawals but my question is will it allow more than 2 IFTs a month and also when will it become effective? My understanding is that the President has already signed it. Any info will be appreciated.
Re: TSP modernization act
Nobody knows what the market is going to do in the future. Stop asking. Just shut up and follow strategy #72033 to glory.
Re: TSP modernization act
By the way, one nice thing that I don't think anyone is talking about is they're adding the ability to specify how much of your withdrawal will be from your Roth account and how much will be from your Traditional TSP account. So you won't have to worry about the early withdrawal penalty by withdrawing from your Roth account too early.
Nobody knows what the market is going to do in the future. Stop asking. Just shut up and follow strategy #72033 to glory.
- Snapdragon
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Re: TSP modernization act
Stupid 2 IFT rule stay as I understand it. I'm not holding my breath for when it becomes reality, I would love next year though.
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Re: TSP modernization act
I didn't see this on that TSP form S-10 pamphlet, where did you find the info about Roth/Traditional withdrawals?MrSnrub wrote:By the way, one nice thing that I don't think anyone is talking about is they're adding the ability to specify how much of your withdrawal will be from your Roth account and how much will be from your Traditional TSP account. So you won't have to worry about the early withdrawal penalty by withdrawing from your Roth account too early.
mo meng, mo ching (which loosely means: no money, no life)
Re: TSP modernization act
first page, left-hand side: “By the way, in addition to the changes made by the new law, we’re also adding the ability to specify how much of your withdrawal should be Roth and how much should be traditional; withdrawals currently come out pro rata from both sources.”
Nobody knows what the market is going to do in the future. Stop asking. Just shut up and follow strategy #72033 to glory.
Re: TSP modernization act
Remember their campaign to stay with TSP?
They found that their rules resulted in greater withdrawals or people leaving TSP all together. If anything changed after starting full withdrawal, only option is to continue as is until next allowable change or close your TSP (cashing it all out and/or rolling it over to outside IRA). A definite advantage to financial advisors selling a Fed on their services.
The proportional system with Roth complicated everything, guaranteeing a quicker drawdown rate and eliminated the advantage of no RMDs at 70.5 for Roth. The work around, transferring Roth portion to an outside Roth account basically directs Feds to TSP's competition
It will be interesting to see what they come up with in any proposed regulations.
They found that their rules resulted in greater withdrawals or people leaving TSP all together. If anything changed after starting full withdrawal, only option is to continue as is until next allowable change or close your TSP (cashing it all out and/or rolling it over to outside IRA). A definite advantage to financial advisors selling a Fed on their services.
The proportional system with Roth complicated everything, guaranteeing a quicker drawdown rate and eliminated the advantage of no RMDs at 70.5 for Roth. The work around, transferring Roth portion to an outside Roth account basically directs Feds to TSP's competition
It will be interesting to see what they come up with in any proposed regulations.
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Re: TSP modernization act
So, the 2 IFT rule stays in? It would have been nice to have had another one in Dec. besides the G fund for the 3rd.
Re: TSP modernization act
Oh my goodness! This is GREAT!!! This is the only reason I was looking to move my Roth TSP balance into a Roth IRA in the first place.MrSnrub wrote:first page, left-hand side: “By the way, in addition to the changes made by the new law, we’re also adding the ability to specify how much of your withdrawal should be Roth and how much should be traditional; withdrawals currently come out pro rata from both sources.”
NICE.. this is going to work out so much better.
Those who 'abjure' violence can do so only because others are committing violence on their behalf.
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Re: TSP modernization act
I needed 12 more IFTs in December, and 20 in January. Stupid 2 IFT rule.
Re: TSP modernization act
My big question is why does the TSP care so much about people staying in the TSP after they retire? The more people stay the more money/users they have to oversee, therefore the harder it is to manage. Or are they making money off of everyones’ accounts through fees? But then if that’s the case why aren’t they lobbying to open up the TSP to all the U.S. workforce? Not all U.S. employees have 401k plans, y’know.
Nobody knows what the market is going to do in the future. Stop asking. Just shut up and follow strategy #72033 to glory.
Re: TSP modernization act
That’s a good question Mrsnrub...what are they up to with trying to keep people in TSP? Is TSP insolvent? Have the politicians been robbing from our funds without us knowing it like they did with Social Security for so long? Or are they planning on taxing our TSP funds at withdrawal at a higher rate than other people with a 401k?
You might be on to something...the federal government never backs any kind of law unless it’s in the governments best interest...
I think this should give everyone pause to think about the TSP modernization act...they might have something up their sleeve or planning on passing another law down the road that will not be so nice to us fed employees...
Good luck to everyone!
You might be on to something...the federal government never backs any kind of law unless it’s in the governments best interest...
I think this should give everyone pause to think about the TSP modernization act...they might have something up their sleeve or planning on passing another law down the road that will not be so nice to us fed employees...
Good luck to everyone!
Cheers!
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Re: TSP modernization act
I think it's because the TSP is required to act as a fiduciary. They are simply advising us to do what is, in their professional opinion, the best thing for our retirement goals.
For most of the people that use TSP in the role as it was designed, this advice is sound. TSP is the best deal available for those who use a buy-and-hold, which is the vast majority of those who invest in TSP.
For most of the people that use TSP in the role as it was designed, this advice is sound. TSP is the best deal available for those who use a buy-and-hold, which is the vast majority of those who invest in TSP.
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Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
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Re: TSP modernization act
Conspiracy I tell you.... someone has to pay the finance firms like BlackRock Institutional Trust that the Federal Retirement Thrift Investment Board currently contracts to manage the C fundChulke wrote:That’s a good question Mrsnrub...what are they up to with trying to keep people in TSP? Is TSP insolvent? Have the politicians been robbing from our funds without us knowing it like they did with Social Security for so long? Or are they planning on taxing our TSP funds at withdrawal at a higher rate than other people with a 401k?
You might be on to something...the federal government never backs any kind of law unless it’s in the governments best interest...
I think this should give everyone pause to think about the TSP modernization act...they might have something up their sleeve or planning on passing another law down the road that will not be so nice to us fed employees...
Good luck to everyone!
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Re: TSP modernization act
Of course BlackRock gets paid for managing the funds (they have to pay off that $10 million birthday party for the CEO)
mo meng, mo ching (which loosely means: no money, no life)
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