Thread: Ask Tom (tsptalk)

Hypo:

1) I am getting divorced. If I have a TSP, can I withdraw money from my TSP without incurring penalties?

2) Is it considered income for tax purposes?

3) Can my husband get cash out of the TSP if I have a qualified domestic relations order done (without incurring penalties)?

4) Are there taxes incurred with my husband getting his marital share? If so, how is this handled?

5) Would a seperate TSP then be crated for him?

Originally Posted by irishk8

Hypo:

1) I am getting divorced. If I have a TSP, can I withdraw money from my TSP without incurring penalties?

2) Is it considered income for tax purposes?

3) Can my husband get cash out of the TSP if I have a qualified domestic relations order done (without incurring penalties)?

4) Are there taxes incurred with my husband getting his marital share? If so, how is this handled?

5) Would a seperate TSP then be crated for him?

At the risk of giving inaccurate information, you should always check with the www.tsp.gov website for answers to specific questions like this. And of course, your divorce attorney should be a good source for this info. That said, I and hopefully others will chime in with our opinions and suggestions. But again, we are not the authority or official word on this:

1. It depends on several factors. Your age, where you would put the money once withdrawn (another IRA for instance), is it going to an ex-spouse, etc.

2. It would be taxable if it is not rolled over to another qualifying retirement account.

3. I don't know for sure. My guess is that he would incur any penalties and taxes if that is the case.

4. Yes. His attorney should provide him with what he needs.

5. If he is not gov't or military, it would likely be moved to an IRA or other quafified retirement account.

Hope that helps some. If others can help, please chime in.

Thanks!

Tom,
I have a friend that would like to transfer his Defined Contribution (DC) from his old plan into TSP. What forms would he use and how would he do it?
P

My guess is TSP-60.

http://www.tsp.gov/forms/tsp-60.pdf (you'll probably need to cut & paste this into your browser otherwise you'll just be taken to the tsp.gov homepage)

Sir, I'm new here & would like your opinion of my TSP allocations, if you don't mind.

They are as follows:

G & F funds- 0%
C fund- 22.92
S fund- 32.13
I fund- 44.95

I am at least 15 years away from retirement.

Thanks in advance for your opinion and/or suggestions regarding my allocations.

Looks good to me assuming you are going to leave it as is for the long-term.

Good luck!
Tom

Tom,
You mentioned on your daily commentary that we would have to make our transactions on Thurs.9 Nov. to be effective on Monday 13 Nov. I found this on the TSP website. Isn't it saying that transactions will be processed on Friday?


Veteran's Day, November 10, 2006 — Although November 10th is a Federal holiday, the stock and bond markets will be open. In addition, we have been advised by the Department of the Treasury that it will be open to accept our investments in the G Fund. Therefore, the TSP will be operating on a limited business schedule on November 10th.

• Share prices will be calculated as of close of business on November 10th and account balances will be updated.

• Transactions made on this Web site or the ThriftLine by 12 noon eastern time on Friday, November 10th will be processed that night.

The TSP call centers will be closed on November 10th.

Thanks

What's Up with Mike?

Originally Posted by tsptalk

What's Up with Mike?

Sorry I didn't explain. Mike's discussion was filling up this thread so I moved it over to another thread so he can finish the story. We can delete it or move it to another forum if you'd like.