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TSP Options
atc_fers
Posts: 1 Newbie
I am an air traffic controller and will be able to retire in 4 1/2 years at age 50 and I do plan to go.
My question is regarding my TSP account. I know pulling the money out and using it all at once will kill me in taxes with the penalties for early withdrawal. Buying an annuity is also an option, but I do not like that idea because should something happen to both my wife and me, then the feds keep the money.
One option that was mentioned to me was to roll the TSP over into another 401K which as explained to me would have no tax to roll over. Then, I'm told I can withdrawal yearly payments and have no tax penalty as long as those payments do not exceed an amount in some life expectancy table.
I am looking for more information on this. I found a table, but not sure I understand it. First, the table only starts at age 70. What about someone who is 50 like I will be??? Second, for the line at age 70 it shows life expectancy of 27.5 years. Are they serious??? The average life expectancy can't be anywhere close to that.
Anyway, I would like some information as to how this works and how I could calculate what my yearly withdrawal without a tax penalty would be using this life expectancy plan. I sincerely appreciate any information.
My question is regarding my TSP account. I know pulling the money out and using it all at once will kill me in taxes with the penalties for early withdrawal. Buying an annuity is also an option, but I do not like that idea because should something happen to both my wife and me, then the feds keep the money.
One option that was mentioned to me was to roll the TSP over into another 401K which as explained to me would have no tax to roll over. Then, I'm told I can withdrawal yearly payments and have no tax penalty as long as those payments do not exceed an amount in some life expectancy table.
I am looking for more information on this. I found a table, but not sure I understand it. First, the table only starts at age 70. What about someone who is 50 like I will be??? Second, for the line at age 70 it shows life expectancy of 27.5 years. Are they serious??? The average life expectancy can't be anywhere close to that.
Anyway, I would like some information as to how this works and how I could calculate what my yearly withdrawal without a tax penalty would be using this life expectancy plan. I sincerely appreciate any information.
0
Comments
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No-one here can really help out with 401K's.
Perhaps https://www.fool.com the pensions discussions board there could be of use to you
Best regards
Troubleatmill0
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