Re: TSP Modernization Act - Any traction on this legislation?
Hallelujah! that second link says they are going to make it possible to take separate withdrawals from tsp-traditional vs tsp-roth, instead of forcing prorated from both accounts same time. simplifies my tsp withdrawal strategies enormously, in the event I want to get rid of the teeny tiny tsp-Roth catchup acct I accidentally contributed to early this past year instead of to regular tsp-catchup as had intended.
I talked about that earlier this year when I discovered the mistake and was seeing about getting it undone. Idiots at payroll said no, I couldn't undo it and move it to trad tsp, because I'd already paid taxes on it. Even tho I told them I had found a DOD tsp form that allows for undo of roth-tsp contribution, and was asking about existence of a civilian version of that form. which evidently doesn't exist. Any DOD person could undo their roth-tsp contribution if they wanted to, by using the DOD form, despite having already paid taxes on it...., but nooooo, my question about doing the same thing on civilian side was treated pretty speciously, they never even acknowledged that it IS possible on DOD side, much less said hmmm, if it's allowed there, it should also be allowed on civilian side, we'll look into it, see what can be done. No service-oriented attitude about tsp logistics on the civilian side. this new legislation is at long last a good start. loooooong overdue.
With the new tax brackets, once the regs are in place, I'll be able to pull lump sums for buying retirement mini-farm property during the years the new brackets are in place. have the place paid off in that timeframe, that way by the time tax brackets revert to what they are now, I won't need to pull as much in monthly or yearly (I love that option too!), since won't be needing more for mortgage payments, just living expenses and cash flow for small startup shoestring businesses associated with the retirement property concept. I'm loving the new possibilities for feasible sustainable money management in retirement years coming soon to an alevin near you.
"life can only be understood backwards, but it must be lived forwards" - soren kierkegaard
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