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Thread: Valkyrie's Account Talk

  1. #469

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    Default Re: Valkyrie's Account Talk

    Quote Originally Posted by Valkyrie View Post
    So is it true that any withdraw from the TSP account gets federal tax taken out even though I'm retired?

    what would be my options? IRA?, Roth?

    thanks for the help.
    Depends on how the money was put into the TSP. If it was put in to "traditional", then yes it will be taxed when taken out. If it was put into the Roth TSP option, it will not because it was taxed when going in.

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  3. #470

    Default Re: Valkyrie's Account Talk


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  5. #471

    Default Re: Valkyrie's Account Talk

    Quote Originally Posted by bmneveu View Post
    Depends on how the money was put into the TSP. If it was put in to "traditional", then yes it will be taxed when taken out. If it was put into the Roth TSP option, it will not because it was taxed when going in.

    the roth tsp option wasn't offered until near the end of my career, so never used it.

    so even if I roll over the TSP account into an IRA account it still gets taxed? my understanding is that I cannot roll it over into a Roth Ira.
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798

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  7. #472

    Default Re: Valkyrie's Account Talk

    I think you can convert pre-tax traditional retirement funds into Roth funds (saving the future tax on any profit) - But to do it, you have to pay the tax on the money at the time of conversion. This is a good strategy as long as the "income" doesn't bump you into a higher tax bracket, especially if you want to pass the money to your heirs when you pass...

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  9. #473

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    Default Re: Valkyrie's Account Talk

    Quote Originally Posted by Valkyrie View Post
    the roth tsp option wasn't offered until near the end of my career, so never used it.

    so even if I roll over the TSP account into an IRA account it still gets taxed? my understanding is that I cannot roll it over into a Roth Ira.
    If you roll over your TSP into another 401k it will not be taxed until you start to withdraw. If you roll over your TSP to a Roth IRA it will be taxed. I found this on the internet read about halfway down.
    Roth Conversion: Converting IRAs |considerations and next steps | Fidelity
    Rolling a 401(k) Directly Into a Roth IRA
    May the force be with us.

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  11. #474

    Default Re: Valkyrie's Account Talk

    Also, if you have your money in traditional TSP (fully taxable when withdrawn and subject to 20% withholding), that does not mean it will be enough to cover the actual taxes. You can get a 1040 ES form to estimate your taxes for the year to see around what it will be. When you withdraw traditional TSP funds whether during retirement or as an in-service (still working /not yet retired) and meet age requirement, the withdrawal gives you option to have them withhold more to cover the taxes.

    I only mention estimating your taxes Closely because you do not want to overpay IRS too much! Right now, apparently due to Covid but likely because they do not have ability for most workers to work from home, or who the hell knows why, THEY are almost a year behind in processing tax returns and refunds! I know this for sure... They have taken over a year on my return to give me my refund. They are taking 6 months to even confirm they received your return!

    They also prefer electronic submissions to paper submissions, as they keep losing hardcopy submissions. If you file paper return by mail, make sure to get return receipt at post office and print the USPS delivery information online to have hardcopy proof of delivery.
    Now back to TSP traditional. If you move monies to outside IRA traditional, make sure they do NOT distribute monies to you as that triggers tax. Instead make sure TSP provides the funds directly to your external IRA Traditional account...no tax triggered by doing that but then you likely have mire admin fees but more ability to invest as you like and better ability to grow your money.

    If you want to convert some monies from traditional to Roth, so you can leave taxfree money to children, the tax strategy would be to move it bit by bit but keeping within your current tax bracket to not trigger higher taxes than necessary. Again the 1040ES, completed for your planning comes in handy along with tax charts in the instructions. The thought here us to move only the amount that brings you just under the next higher tax bracket. Ex. Around $80k, after you have pulled out your standard deduction, the taxes go from 12% to 22%...yikes...it almost doubles!

    So, if your under that next bracket's threshold, just move funds to Roth that keep you out of the higher bracket. If you are already in 22% tax bracket...well..make sure you are not going into the next higher bracket, which I believe is around 30%.
    Last edited by DreamboatAnnie; 01-13-2022 at 11:01 AM.
    Don't take my comments as trading advice /IFT: 2-13-24=100G/https://www.theepochtimes.com/ & http://www.ewg.org/PermaCharts@p430#5159/strategy#4918p.410

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  13. #475

    Default Re: Valkyrie's Account Talk

    100G cob
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798

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  15. #476

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    Default Re: Valkyrie's Account Talk

    Edit: Sorry, I didn't see all the previous responses before answering your question on TSP tax withholding.
    ---
    Depends on how you do it. Single withdrawal, RMD, or fixed payment expected to last more than 10 years.

    See chart on page 3. https://www.tsp.gov/publications/tsp-780.pdf

    Easiest option would be Roth conversion, but that's still a huge up front tax hit (and costs to hire someone to do it right) and may or may not be best for you.

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  17. #477

    Default Re: Valkyrie's Account Talk

    West Virginia will no longer be investing taxpayer dollars in investment company Blackrock due to the corporation’s support for the Chinese Communist Party and its opposition to American oil and gas.
    “The decision was based on recent reports that BlackRock has urged companies to embrace ‘net zero’ investment strategies that would harm the coal, oil and natural gas industries, while increasing investments in Chinese companies that subvert national interests and damage West Virginia’s manufacturing base and job market,” State Treasurer Riley Moore announced.

    https://www.patriotsgazette.com/poli...stment-company
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798


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  19. #478

    Default Re: Valkyrie's Account Talk

    https://www.youtube.com/watch?v=AdZPaAuUVjQ

    Who is the Biggest Loser in this Economy? - Robert Kiyosaki, and Peter Schiff
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798

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  21. #479

    Default Re: Valkyrie's Account Talk

    Its Magic....except the general populace hurt

    https://www.forbes.com/sites/andrewt...h=3e7cf2d46118
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798

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  23. #480

    Default Re: Valkyrie's Account Talk

    really I have to laugh, these people run the show, this is all a planned event to destroy the current system so they can bring the new world system.

    "with members saying that price increases have been stronger and more persistent than they had anticipated.“Participants remarked that recent inflation readings had continued to significantly exceed the Committee’s longer-run goal and elevated inflation was persisting longer than they had anticipated,"
    https://www.cnbc.com/2022/02/16/fede...y-meeting.html
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798

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