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Thread: I am retiring in six days

  1. #1

    Default I am retiring in six days

    Can I just leave my thrift savings plan alone and not make any changes? Sorry for such a basic question, but I've been a little busy.


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  3. #2

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    Default Re: I am retiring in six days

    Congrats on the pending Retirement! Yes, you can leave it and decide when to withdraw later. Like all regular IRAs, you are only required to start withdrawing at age 70.5 when required minimum distributions set in. Good Luck

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  5. #3

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    Default Re: I am retiring in six days

    Congratulations on your upcoming retirement. Nothing like it.
    Yes, you can leave your TSP as-is. Low administrative costs, and you can still move your money around between the various funds. Shop one of the premium services on this site if you're seeking help with your moves, and for some excellent advice on market analysis. Down the road you can rollover part of it into an IRA, or make a one-time partial withdrawal, or a combination of both. You're only taxed on the one-partial withdrawal, or rollover into a Roth IRA. Rollovers to a traditional IRA are not taxed until you begin withdrawing money from your IRA account.
    Your choice. Enjoy your retirement.

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  7. #4

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    Default Re: I am retiring in six days

    Quote Originally Posted by 29year View Post
    Can I just leave my thrift savings plan alone and not make any changes? Sorry for such a basic question, but I've been a little busy.
    Yes, you can leave it alone with one exception- when you turn age 70 1/2 you MUST begin taking distributions.
    You are ok to not not touch it until then, if that is what you wish.
    SEE the rules around Mandatory Required Minimum Distributions (RMD): https://www.tsp.gov/PlanParticipatio...nts/rmdbp.html


    Good luck and congrats on making it to retirement!

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  9. #5

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    Default Re: I am retiring in six days

    Also one thing to remember is that you will not be making any more contribution's to your TSP out of your retirement check. If you want to continue to add to your TSP then you will have to transfer your TSP funds to a normal IRA.
    May the force be with us.

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  11. Default Re: I am retiring in six days

    Isn't IRA contribution limited to Earned incomes?

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  13. #7

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    Default Re: I am retiring in six days

    Quote Originally Posted by nasa1974 View Post
    Also one thing to remember is that you will not be making any more contribution's to your TSP out of your retirement check. If you want to continue to add to your TSP then you will have to transfer your TSP funds to a normal IRA.
    If you want to add to your retirement savings, you or your spouse must be employed as only earned income can be used for funding IRA. You have until the tax filing deadline in April to fund an IRA for 2016 if you are under in the income threshold(s).

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  15. #8

    Default Re: I am retiring in six days

    Quote Originally Posted by evilanne View Post
    If you want to add to your retirement savings, you or your spouse must be employed as only earned income can be used for funding IRA. You have until the tax filing deadline in April to fund an IRA for 2016 if you are under in the income threshold(s).
    What is the Income Threshold?...Meaning, is there a max you can make that then you cannot deduct for?...In other words, If I put in $5000.00 in to my IRA and the tax man said, I made too much for the year to take any deductions for that $5000.00....What is TOO much?
    A wise man speaks when he has something to say...A FOOL speaks when he just has to say something

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  17. #9

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    Default Re: I am retiring in six days

    Quote Originally Posted by Buster View Post
    What is the Income Threshold?...Meaning, is there a max you can make that then you cannot deduct for?...In other words, If I put in $5000.00 in to my IRA and the tax man said, I made too much for the year to take any deductions for that $5000.00....What is TOO much?
    Traditional IRA range is lower than Roth IRA range. Only the traditional is deductible. It is possible to split between traditional & Roth but you cannot exceed contribution amount: $5,500 ($6,500 if you’re age 50 or older), see https://www.irs.gov/pub/irs-pdf/p590a.pdf

    Roth IRA Deduction Phaseout Ranges

    Filing Status Phase-out Range
    S/HH..............$117,000-$132,000
    MFJ/QW... $184,000-$194,000
    MFS ..... $0-$10,000

    Traditional IRA Deduction Phaseout Ranges
    Active Participants covered at work
    Filing Status Phase-out Range
    S/HH ............. $61,000-$71,000
    MFJ/QW... $98,000-$118,000
    MFS ...... $0-$10,000
    Spouse Not Covered at Work
    MFJ ... $184,000-$194,000


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  19. #10

    Default Re: I am retiring in six days

    Quote Originally Posted by elleni View Post
    Isn't IRA contribution limited to Earned incomes?
    Roth IRA

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  21. #11

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    Default Re: I am retiring in six days

    Congratulations on retirement! Here's to wishing you a great and fun retirement, and a LIFE outside of the federal government!

    Congratulations again!!!

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