FAQ

Typically, the fund allocations will change 2-3 times each year. This is dependent on our ongoing analysis of current economic conditions, interest rates, etc. As long as the allocations fall within our targeted analysis each month, we’ll never make a change just for the sake of change.
You will be sent an email at the email address on your account profile. You are responsible for making the changes to your TSP account.
The Lifecycle funds allocations consist of predetermined percentages based on the proximity to the fund’s timeframe (date such as 2020, 2030, 2040, and 2050). While the funds become more conservative each quarter as they near their target date, there is no accommodation for current market conditions, geo-political risks, interest rates or other economic indicators.
You should take into consideration not only your age, but also how much risk you are willing to stomach. If you do not have any exposure to the F and G funds, and stocks experience a significant correction, you will not have alternative asset classes to help reduce the volatility.
See the above response to the 30 year old. You should take into consideration not only your age, but also how much risk you are willing to stomach down What’s the difference between MyTSPVision’s allocations and the Lifecycle Funds available within the TSP? I am in my early thirties, should I invest in the stock funds only to maximize my growth potential? I am within a year of retirement, how should I invest as I near retirement? the homestretch of your saving. A balanced portfolio can help reduce volatility and provide protection as you near retirement.
The IRC elective deferral limit is a combined amount for both TSP and Roth TSP. For 2015 the combined limit is $18,000 and if you are age 50 or over you can defer an additional $6,000.
No, once you separate service you cannot make contributions into TSP.
You have to contribute 5% to either the traditional TSP or Roth TSP to get your 5% agency matching contributions, however the agency contributions will be put in the traditional TSP.
Your agency Automatic (1%) Contributions and their earnings, are vested after you’ve completed 3 years of service for most FERS employees. Your own contributions, your Agency Matching Contributions (up to 4%) and their earnings are always vested.
No, once you separate service you cannot make contributions into TSP.
The Lifecycle funds allocations consist of the G, F, C, S & I funds only. The idea is to select one L Fund that is based on your time horizon, or the date in which you intend to start withdrawing your money.
You should take into consideration not only your age, but also, how much risk you are willing to stomach. If you do not have any exposure to the F and G funds, and stocks get clobbered, you will not have alternative asset classes from the F and G funds, which can reduce the volatility.
No, once you separate service you cannot make contributions into TSP.
Yes, TSP will accept transfers and rollovers from traditional IRA’s, Simple IRA’s, and eligible employer plans. TSP will only accept into your Roth TSP, transfers from Roth 401(k)s, Roth 403(b)s, and Roth 457(b)s.
No, once you separate service you cannot make contributions into TSP.
Yes, you can retire with an outstanding loan, however any loan balance will be reported to the IRS as a taxable distribution and you will have to pay income taxes. If any of the loan balance consists of Roth contributions, any qualified earnings will not be subject to tax.
You can take an Age-based in-service withdrawal anytime after you reach age 59 1/2. You may withdrawal part or all of your vested balance, but are only permitted one age- based withdrawal. (If you make an in-service withdrawal you will not be permitted to make a partial withdrawal after you separate from service). Unless you rollover these funds to an IRA, or eligible employer plan, you will owe taxes on the portion that comes from our traditional IRA balance. Any portion of an in-service withdrawal that is from your Roth contributions will not be taxed. You will only have to pay tax on the earnings if they are not qualified.
You may be able to take a hardship withdrawal if you can certify that you have a financial hardship as a result of a recurring negative cash flow, legal expenses for a divorce, medical expenses, or a personal casualty loss. You can only withdraw you earnings and any earning those contributions accrue. Withdrawals will be subject to ordinary income tax and will be subject to a penalty if you are under age 59 1/2.
If you are separated from service , you are required to begin taking the IRS Required Distribution (RMD) by April1st of the year following the year you turn age 70 1/2. This applies to the Roth TSP as well. If you are still employed at age 70 1/2, your RMD must begin by April 1 of the year following the year you separate from service.
You can avoid the 10% early withdrawal penalty if you separate service at age 55 or later. If you separate before age 55, and take withdrawals before attaining age 59 1/2, the 10% penalty will be imposed.
Traditional TSP contributions along with earnings are tax-deferred until you withdraw them. Roth TSP contributions are taxed when you make them and your earnings are tax-free when you withdraw, as long as you meet the requirements to qualify.
At present TSP will not allow a conversion of your Traditional TSP to your Roth TSP.
Your distributions will be income tax-free if five years have passed since January 1 of the year you made your first Roth TSP contribution and: you are age 59½ or older, permanently disabled, or deceased. A distribution that is not qualified is subject to the pro-rata rule. The non-taxable amount of the distribution is determined by dividing your deferrals (basis), by the balance in the Roth TSP account and multiplying the amount distributed by the result.