L. Ronald Blair, Certified Financial Planner

Federal Retirement Seminars Since 1980, Personal Benefit Services Group (PBS) has conducted more than 750 federal government retirement seminars in nearly all 50 states. PBS seminars are taught by qualified instructors with: combined federal government seminar experience of more than 52 years experience in almost every government agency PBS Seminars not only cover the most important information on federal retirement benefits -- such as CSRS/FERS, Social Security and the Thrift Savings Plan -- but more importantly they provide: clear instruction of what to do, and what not to do risk protection plans to protect retirement assets To learn more about holding a retirement seminar at your office, click here.

A recent seminar attendee asked us how to handle distributions from Thrift Savings Plan (TSP) after his retirement.  He had carefully contributed maximum amounts to TSP over working years and had amassed a large sum in his account. 

Our reply:  "Consider rolling the account to an IRA."

Here's why:

Substantially more investment choices.  Where as the TSP has 5 investments plus a group of lifestyle funds, an IRA, especially a self-directed IRA can accommodate nearly any investment including real estate, commodities, annuities, individual stocks, and even certificates of deposits.

Less hassle at 70-½ minimum distribution age.  Current regulations require starting to withdraw from retirement plans at age 70 ½.  If all funds are in IRAs, the withdrawal only has to come from one of the IRAs.  If some funds are in 401(k) type accounts (TSP), a withdrawal has to come from the TSP and the IRAs.

More flexibility to set up periodic income distributions…start, stop, increase, decrease.  TSP allows distributions of monthly income, but that distribution is not very flexible.  An IRA can distribute monthly income, and that distribution can be stopped, restarted, increased or decreased any time.

Unlimited partial withdrawals.  TSP allows one partial withdrawal over the life of the account.  An IRA has no such restriction.

Quicker response time on withdrawals.  A withdrawal from the IRA generally can be done in a few days or less -- not so with TSP.

About the Author

L. Ronald Blair is a Certified Financial Planner, Chartered Property Casualty Underwriter, Accredited Asset Management Specialist, Certified Senior Advisor, Registered Financial Consultant and owner of Personal Benefit Seminars located in Lakewood, Colorado.  He is also a registered representative with Royal Alliance Associates Inc., member FINRA/SIPC.

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