Question's about retirement

Managing your TSP and alternate investment options after retirement or separation from service.

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LONEWOLF
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Joined: Mon Jan 03, 2011 12:27 pm

Question's about retirement

Post by LONEWOLF »

I will have 30 years of federal service when i turn 57 years old.

Question 1.....Will i have to pay a federal 10% tax penalty if i take scheduled monthly payments for over 120 months from my TSP account ?

Question 2......If i take my SSI supplement at age 57, will i be able to get my social security at age 62 and get more money ?

philmiec
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Joined: Thu Nov 20, 2008 5:36 pm

Re: Question's about retirement

Post by philmiec »

It's my understanding that you will not be hit with the 10% penalty since you've completed 30 years service and are officially retired when you begin drawing your monthly pension. And yes, you will be eligible for a social security payment at age 62. The supplement pays you a portion of your SS payment between age 57 and 62. At 62 you can start drawing your regular payment.

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dougellen1
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Re: Question's about retirement

Post by dougellen1 »

philmiec is spot on with the answer!! There is no 10% penalty as long as you are at least 55 at the time of retirement and have 30 years of service.

MasterPSC
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Re: Question's about retirement

Post by MasterPSC »

SS supplement benefit calculation is based on the service year and the amount of SS benefit that you will receive when you become age 62. So the supplement you will get is: Your SS benefit at 62 X your service years / 40 years. As an example: If your expected SS benefit at 62 years old is $1600 per month, but you only worked 30 years, then you will get $1200 per month (30/40 = 75%) until you reach 62 when SS supplement stops. Then you can collect the expected SS benefit (which is $1600 per month) from then on. Hope this help!

John316
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Re: Question's about retirement

Post by John316 »

Is there a penalty in this scenario - say at age 56 you take a full retirement, going out at your MRA with 37 years service. You do not want to leave any money in the TSP, so you open a Traditional IRA with say, Vanguard. You transfer say 300,000. Now, once the transaction is complete, can you begin to withdraw money from this IRA if you choose, even though you are not 59 and a half?

philmiec
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Joined: Thu Nov 20, 2008 5:36 pm

Re: Question's about retirement

Post by philmiec »

I'm pretty sure what dougellen posted is still valid in this scenario. As long as you're at least 55 and retired, the 10% penalty doesn't apply.

crondanet5
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Re: Question's about retirement

Post by crondanet5 »

LONEWOLF, as John 3:16 suggested, roll over your entire TSP Account balance (i.e. close out your TSP Account) into any brokerage house of your choice. Rule 1 says never leave your 401k with an old employer. Rule 2 says never restrict how much or when you can make withdrawals from your 401k account after retiring. If you leave your money in the TSP it is very difficult to change how much you do or do not withdraw. Why put yourself in this box? Roll with the good guys. There are ETFs that mirror the TSP Funds so you can continue to make money with your rolled over TSP balance. Do not leave it in the TSP Program.

johny125
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Joined: Fri Oct 07, 2011 10:18 am

Re: Question's about retirement

Post by johny125 »

I have been retired now for approx 2 years and I have left my TSP balance invested in the TSP. I am very happy with my returns and my yearly ability to change withdrawal amounts.
I don't feel comfortable with "other " folks handling my money, too many instances of ponzi schemes, fraud, etc. Just my .02 cents.

crondanet5
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Re: Question's about retirement

Post by crondanet5 »

johny125 what will you do at age 70 1/2? Stay or roll?

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ArrieS
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Re: Question's about retirement

Post by ArrieS »

crondanet5 wrote:There are ETFs that mirror the TSP Funds so you can continue to make money with your rolled over TSP balance.


Name one ETF that mirrors the G fund.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

crondanet5
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Re: Question's about retirement

Post by crondanet5 »

FCOR

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ArrieS
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Re: Question's about retirement

Post by ArrieS »

crondanet5 wrote:FCOR


FCOR YTD performance -1.37% -0.69, adding dividends back in it's still -0.16.

G Fund TYD performance +0.81%

Doesn't look the same to me.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

johny125
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Joined: Fri Oct 07, 2011 10:18 am

Re: Question's about retirement

Post by johny125 »

crondanet5 wrote:johny125 what will you do at age 70 1/2? Stay or roll?


I guess I will be forced to make that decision in 10 years from now. Crondanet5, what ETF's do you recommend to get returns equivalent to those of the C, S, and I funds?

John

crondanet5
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Re: Question's about retirement

Post by crondanet5 »

Vanguard and Fidelity have some. Talk to their representatives when you get closer to rolling over your TSP Account balance.

LONEWOLF
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Joined: Mon Jan 03, 2011 12:27 pm

Re: Question's about retirement

Post by LONEWOLF »

Thought i read somewhere....Is there a maximum amount a retired person receiving fers retirement, ssi, tsp monthly payments can make if they take another job when they retire ??

Post Reply

Fund Prices2021-04-16

FundPriceDayYTD
G $16.56 0.00% 0.34%
F $20.66 -0.21% -2.53%
C $62.57 0.36% 11.92%
S $83.28 -0.04% 12.24%
I $38.19 0.63% 7.92%
L2065 $13.71 0.39% 10.49%
L2060 $13.71 0.39% 10.49%
L2055 $13.71 0.39% 10.49%
L2050 $27.99 0.31% 8.45%
L2045 $12.79 0.29% 7.92%
L2040 $46.72 0.27% 7.42%
L2035 $12.36 0.25% 6.82%
L2030 $41.20 0.23% 6.25%
L2025 $11.71 0.18% 4.93%
Linc $22.82 0.08% 2.45%

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".

What else

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