What Military Service Can Be Bought Back?

In last week’s article, we reviewed the benefits of making a military service deposit or “buy back” and when it could make sense to do so. We saw that although every situation is different, for most buying back military time makes sense since it can reduce the time until retirement eligibility and increase the FERSContinue reading “What Military Service Can Be Bought Back?”

Should You Buy Back Your Military Time?

If you’re a veteran, then you have likely heard the phrase “buying back your military time” on more than one occasion. But what exactly does that mean, and why is it important? In this article, we’ll discuss the answers to those questions, plus some key factors to consider when deciding whether you should buy backContinue reading “Should You Buy Back Your Military Time?”

Withdrawing From Your TSP Early

Although many federal employees believe that they must wait until age 59 ½ before taking penalty-free withdrawals from their TSP, that isn’t the case. In fact, there are a few different ways that federal employees can take withdrawals before 59 ½ and avoid the 10 percent penalty usually applied to early distributions. In this article,Continue reading “Withdrawing From Your TSP Early”

8 Ways Veterans Can Cut Their Child’s College Costs

As college costs continue to rise, funding what could be a substantial education expense remains a common concern for many parents. And although there are several great ways to save for your child’s education, from 529 plans to Coverdell accounts, the best way to reduce the overall financial burden of higher education is to cutContinue reading “8 Ways Veterans Can Cut Their Child’s College Costs”

5 Things You Should Know About Withdrawing From Your TSP

Whether you are nearing retirement or still building up your nest egg, it’s important that you take the time to understand some of the complexities that are involved with taking TSP withdrawals. Understanding these complexities will help ensure you are not missing critical elements in the multistep retirement planning process. Read on to learn theContinue reading “5 Things You Should Know About Withdrawing From Your TSP”

The TSP Loan At A Glance

Like many 401(K)s, the Thrift Savings Plan (TSP) allows active participants to borrow from their accounts. However, before you can determine whether taking out a TSP loan is the right choice, you must understand how the TSP loan works. Read on for a quick review of the TSP loan nuts and bolts. How A TSPContinue reading “The TSP Loan At A Glance”

Does Your Agency Match Count Toward Your TSP Contribution Limit?

One of the biggest perks of the Thrift Savings Plan (TSP) is the generous government match. Yet, there is some confusion around whether the agency’s match counts toward the annual employee contribution limit set by the IRS. This confusion probably stems from the fact that there are two limits imposed on qualified defined contribution plans,Continue reading “Does Your Agency Match Count Toward Your TSP Contribution Limit?”

How Much Should You Contribute To Your TSP?

When you consider the Thrift Savings Plan’s (TSP) low fees, diversified funds, and generous government match, contributing is a no-brainer for most Federal employees. However, the question of “how much” to contribute is far more complicated. This question is difficult to answer because it depends on many variables such as what age you begin toContinue reading “How Much Should You Contribute To Your TSP?”

How Is Your TSP Taxed?

The Thrift Savings Plan (TSP) is a qualified retirement plan, which means the plan meets specific IRS requirements and, as such, receives additional tax benefits and protections. The tax benefits you’ll receive and how your withdrawals will be taxed depends on whether you have a traditional or a roth TSP. Traditional vs Roth Taxation TraditionalContinue reading “How Is Your TSP Taxed?”