Brits4life Account Talk

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Sentiment Survey to a sell signal, I've been wanting to reallocate back to S anyway. Historically April looks like a good month to be in equities Good job numbers. I think I'll leave things as they are, I just hate to use an IFT on the first day of the month.

50 C
50 I
 
Britts4life said:
I've been talking to some coworkers about the shut down potential and effects on payroll. Does anyone have a clue about what the affect on TSP would be? No IFTs? No loan payments?
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TSP Addresses Furlough Questions

The TSP recently issued this guidance on the treatment of accounts should employees be furloughed due budgetary reasons.
What would be the effect of a Government shutdown on the TSP?

A Federal Government shutdown would not affect the TSP. Neither the TSP nor the Federal Retirement Thrift Investment Board receives annual appropriations from the Congress. Since the TSP is not dependent on Congressional appropriations, a Government shutdown would not affect the TSP; the TSP would continue to operate “business as usual.”

Will my TSP investments be affected?
What about disbursements?
Investment activity will continue. Share prices and account balances will continue to be updated each business day, and loans and withdrawals will continue to be disbursed. What happens to my contributions? Because you are not paid during a furlough, your TSP contributions will stop, and, if you are a FERS employee, you will not receive agency contributions during this time.

Can I take a TSP loan while I’m furloughed?
Yes. By law, a TSP participant may take a TSP loan any time before separation. 5 U.S.C. § 8433(g)(1). The TSP has adopted an administrative rule that provides that TSP participants must be in a pay status in order to take a TSP loan. 5 C.F.R. § 1655.2(b). The TSP adopted this rule because it generally requires TSP participants to agree to repay their loans through payroll deduction. 5 C.F.R. § 1655.12(b). The first payment is due on or before the 60th day following the loan issue date. 5 C.F.R. § 1655.14(c).
Since shutdowns are rare occurrences and are typically of short duration, the TSP’s Executive Director has determined that it is in the best interest of TSP participants to interpret the requirement that participants be in a pay status to mean that a break in pay due to a Government shutdown does not disqualify one from TSP loan eligibility. A short-term break in pay status would still allow participants to commence payment by payroll deduction within the required 60 days of the loan issue date. If a shutdown were to extend beyond 60 days, participants would still be responsible for making loan payments (see next question).

What happens to my loan payments while I’m furloughed?
If you have an outstanding loan and you are furloughed, your loan payments will stop because they are deducted from your pay. Loans are not considered in default until the participant has missed more than 2½ payments. If you miss a loan payment (or two) as a result of the furlough, you always have the option to make direct payments to the TSP using the Loan Payment Coupon available in the Forms & Publications section on the TSP website. Otherwise, your loan term will be extended or, if you have requested the maximum loan term, you may have a balloon payment at the end of the loan term. If you miss more than 2½ payments, we will notify you by mail that you must mail in a personal check for the “cure” amount to get your loan back on track.

Does my agency have to send in a Form TSP-41 notifying the TSP that I have been furloughed?
Your agency should not send a Form TSP-41 to the TSP during a Federal Government shutdown. A shutdown is a rare occurrence and is typically of short duration. The Form TSP-41 is intended for participants who are being placed on extended leave without pay, e.g., due to illness, military furlough, maternity leave, etc. It is not practical for the agencies to complete and submit Forms TSP-41 for all of their furloughed employees who have TSP loans (both at the beginning of the furlough and at the end), and it is not practical for the TSP to process these forms.

Can the Government take money from the TSP to resolve the financial situation?
No, the money in the TSP is held in trust for its participants. Neither Congress nor the Administration can take money from your TSP account.
 
I have had a lot of uncertainty the last few days about were to place my TSP funds. There is much to consider (isn't there always) and how does one prioritize the various forces that work to make the markets move. Seems to come down to witch craft (TA, charting, premium services) or a gut feel.
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I've decided to place Seasonality at the top of my list for April, at least until it becomes obvious I have made a mistake. And then I'll take my whacks and reallocate. And I don't want to waste an IFT just to get back to 100% S, especially since it is on a sell. So, staying 50/50 C/I for now. Maybe I'll just wait to see what Afishegg does.
 
There have been numerous posts lately expressing worries about the budget effect on the G and F funds. There is a concern about our G fund being "borrowed" to help avert the debt limit, etc. Would it be a valid suggestion not to worry because if the G fund is to be "borrowed" for some time period one's balance could be moved into equities once the announcement is made. When the G fund is borrowed there has not been a restriction preventing movement out of it.
 
Britts4life.

I am probably the loudest bubba in the shop regarding 'G Fund' borrowing by the Treasury.

As per James, there has NEVER been an occurance where 'G Fund' assets borrowed by the Treasury cannot be moved. James researched it and found that the fund remained liquid.

However (comma), we have never driven ourselves in the hole as far and as fast as we are now. NEVER (yuk, yuk). I mean, Britts4life, we are running monthly deficits greater than the FY2006 annual deficit as a normal occurance. As they say - baked into the cake.

Our 'G Fund' assets won't even provide this Administration a month of deficit spending float.

The Black Swan has taken flight again.

I don't want to be under it.

But, I am:embarrest:
 
I'm not sure this is the right place to post his but,,,,,

I'm getting a forced job relocation this summer. Due to a recent divorce and custody fight I'm going to have to do a partial withdrawal from my TSP account. It will be a significant amount, perhaps six figures. It will be for attorney's fees, down payment on a new home, get rid of some consumer debt and of course enough to pay the taxes on the withdrawal. I really hate paying the taxes on it and it will likely boost my AGI into a new tax bracket. Any ideas on who to talk to about ways to help reduce my tax burden. I figure a CPA would be a likely candidate but thought I'd ask our collective knowledge base. I'm learning that resistance often is futile!
 
WOW! my support and condolences but no idea what to do you must be at least 59 1/2 years old.:confused:
 
Last edited:
Brits, Sorry to hear about your situation.:( Definitely recommend you retain a CPA and a good one! Will save you money in the long run especially with a complex financial situation like you described. Good luck!
 
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