The Thrift Savings Plan launched a “Grow with the TSP” web page to highlight the potential growth that’s possible in accounts.
Thrift Savings Plan (TSP)
Why Transferring Traditional TSP to a Roth IRA Makes Sense for Many Federal Employees
Many federal employees could be in a higher marginal tax bracket by the time they withdraw their traditional TSP and traditional IRA accounts. Ed Zurndorfer gives insight on why transferring a traditional Thrift Savings Plan to a Traditional IRA — and then converting to a Roth IRA — may be beneficial. Practical examples and suggested steps are provided
5 Mistakes to Avoid When Making TSP Required Minimum Distributions
Knowing the required minimum distribution (RMD) rules is extremely important because of the severe IRS penalties — plus the missed planning opportunities. Ed Zurndorfer discusses common mistakes to avoid.
A Misunderstanding of the Early Withdrawal Penalty for Disability Applicable to the TSP and IRAs
The exception to the 10 percent early withdrawal penalty for disability applicable to Thrift Savings Plan participants and to IRA owners is a source of much confusion. Ed Zurndorfer examines when a TSP participant and an IRA owner can make penalty-free withdrawals
How Does a Roth TSP Rollover to a Roth IRA Work?
Ed Zurndorfer answers two important questions that every Roth Thrift Savings Plan participant should ask before requesting a rollover to a Roth IRA. Practical examples are included
Why TSP Beneficiary Form Needs to Be Updated Online
A recent federal court decision regarding the validity of a beneficiary form is a stark reminder of why beneficiary forms need to be reviewed regularly by federal employees and retirees. Ed Zurndorfer outlines the implications for those who have contributed over the years to the Thrift Savings Plan
Roth vs. Traditional TSP: Which One Should You Choose?
Many federal employees ask which Thrift Savings is more appropriate to contribute to. Ed Zurndorfer discusses seven of these considerations — including tax consequences and required minimum distributions (RMDs). Practical examples are included
What Happens If Excess Contributions Are Made to the TSP and Another Retirement Plan?
Ed Zurndorfer discusses what happens when a federal employee makes “excess deferrals” while participating in the Thrift Savings Plan and another qualified retirement plan. Practical scenarios are provided
How the TSP Calculates the Required Minimum Distribution (RMD)
Ed Zurndorfer explains how the Thrift Savings Plan calculates the TSP RMD, including the different rules that apply in a TSP participant’s first, second and subsequent distribution calendar years
How to Avoid the Biggest Mistakes in Making Beneficiary Designations
A complete and comprehensive estate plan includes properly filled out beneficiary designation forms. Ed Zurndorfer discusses what federal employees need to consider in avoiding the 10 biggest mistakes in making their beneficiary designations