Recent content by JD1964

  1. J

    TSP beneficiary question

    I called the Thriftline a second time. To the credit of the associate, they confirmed my concerns regarding TSPBK33 Page 11, 2nd paragraph. Heirs of TSP Beneficiary Participants cannot roll TSP to IRA. Incidentally, also recently a second financial advisor got it wrong.
  2. J

    Retiring/TSP process questions

    Dont roll to a roth IRA because they’ll tax you in a one time lump sum.
  3. J

    Retiring/TSP process questions

    Confirm this with a financial planner but heres what might be beneficial. First, roll the TSP into an IRA. With this there are multiple advantages. One is that your investment choices will be vastly increased in an IRA as compared to the TSP. Secondly, no matter what happens regarding your...
  4. J

    TSP beneficiary question

    I think the TSP rules are ridiculous! I mean seriously, think about how many TSP account owners will naturally name their spouse as the beneficiary. Then when the spouse dies, the account cannot be converted to an IRA and the next beneficiary must take full payout in a single tax year. Why is...
  5. J

    TSP beneficiary question

    Furthermore, I believe I have the documentation which confirms that a Trust can handle the task of rolling a TSP into an inherited IRA. Keep in mind that this requires that the Trust is listed as the "primary" beneficiary. Read the second paragraph of page 15 in this document > TSPBK26...
  6. J

    TSP beneficiary question

    By the way, in this whole ordeal of attempting to understand and learn the TSP death benefit distribution rules, I have gotten incomplete, confusing, misleading and punting from multiple professionals who in my opinion should know this stuff. The pros included a trust lawyer, a certified...
  7. J

    TSP beneficiary question

    I had the meeting with the trust lawyer today and they did not provide me with any clarity regarding TSP rules specifically. They sort of pretended to know with a statement of "the way I interpret this is....." They did make me aware that when a beneficiary receives benefits, that...
  8. J

    TSP beneficiary question

    I have two separate rollover Ira’s, each with a different entity that I have setup in case I need them roll into. I also have two separate individual “non-retirement” investment accounts with the same entities. I’ve been moving my TSP funds into the individual investment accounts as fast...
  9. J

    TSP beneficiary question

    Interesting thing is I asked a CFP this very question. In fact, it was a CFP on a list recommended by my Trust law firm. I gave them reference to the TSP 14-4 bulletin as well and first had a phone call, then followed up by submitting the question in writing via email. It took them two weeks...
  10. J

    TSP beneficiary question

    This part “below” from Groks reply is in conflict with what both TSP associates at the Thriftline said to me. They said the Trustee of the Trust could roll the TSP into an inherited IRA Caveat: If the trust is a successor beneficiary after a spouse beneficiary participant’s death, the TSP...
  11. J

    TSP beneficiary question

    I just got off the phone with the Thriftline. I wanted to make double sure so I called back a second time and got the same answer again from a different associate. Both TSP associates told me that if I die, or my spouse beneficiary dies, either together or in succession and a Trust is the next...
  12. J

    TSP beneficiary question

    As I said in my initial post, I'm trying to best manage my estate and also learn options so another family member can best manage theirs. In my case, I'm 61 years old and have already begun in service withdrawals. I'm moving the money into an individual investment fund (not IRA). My reason...
  13. J

    TSP beneficiary question

    Well, have you looked at the tax rate table for trusts? If the TSP pays directly to the trust, the tax rate is 37% for anything over $15,600. And thats just federal. Add you state and local taxes to the bill as well.
  14. J

    TSP beneficiary question

    I actually have an appointment with my trust lawyer on June 5. I’ll what else he can clarify for me. I’ll post back what I learn in the meeting.
  15. J

    TSP beneficiary question

    Awesome! This answers exactly what I needed to know. Thank you
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