5 Things Federal Employees Need To Know About RMDs

Many federal employees have heard about Required Minimum Distributions (RMDs), and although most will be subject to this rule, few know the details surrounding it. Since RMDs are such an important factor in retirement planning, this week, we are covering the 5 things you must know about them. So, let’s dive in! 1: What AreContinue reading “5 Things Federal Employees Need To Know About RMDs”

What Federal Employees Need To Know About Tax Diversification?

An overwhelming number of federal employees that come to me for help have most of their retirement assets in a tax-deferred account, meaning the traditional Thrift Savings Plan (TSP) and/or a traditional IRA. And while saving diligently in your TSP throughout your career is a great thing, using other account types to build diverse taxContinue reading “What Federal Employees Need To Know About Tax Diversification?”

What Is The TSP Hardship Withdrawal?

Most federal employees are familiar with the rules for putting money into their Thrift Savings Plan but aren’t sure about taking money out. When thinking about the withdrawal rules for the TSP, it’s essential to differentiate between the rules while you’re a federal employee versus when you have separated from service. Withdrawals made while you’reContinue reading “What Is The TSP Hardship Withdrawal?”

Contributing To Your TSP After Separating From Federal Service

Sooner or later, you will separate from federal service, and whether you are called to retirement or the prospects of the private sector, you’ll have to decide what to do with your Thrift Savings Plan. While many federal employees will opt to transfer their TSP to an IRA, many will choose to keep their nestContinue reading “Contributing To Your TSP After Separating From Federal Service”

Should You Use Your TSP To Pay Off Your Mortgage?

As federal employees near retirement, many questions inevitably come up. One common question I am asked is, “should I use my TSP to pay off my mortgage?” And my answer almost always is, it depends. Though it might seem like a smart financial move, several factors should be considered before deciding to pay off yourContinue reading “Should You Use Your TSP To Pay Off Your Mortgage?”

How Federal Employees Can Manage Their Investments In Retirement: The Bucket Strategy

As federal employees prepare to retire, they must shift from the accumulation mindset to the distribution mindset; said differently, they must shift from the saving mindset to the spending mindset. This change comes with many challenges, chief among them is deciding on a retirement income strategy. When developing a plan for turning your retirement assetsContinue reading “How Federal Employees Can Manage Their Investments In Retirement: The Bucket Strategy”

Roth Conversions: What They Are & The 3 Things Federal Employees Need To Know

With all the recent talk of Roth conversions in the media and on the hill, many federal employees are asking what the heck is a Roth conversion, and where do I get one? Simply stated, a Roth conversion refers to the process of moving some or all of your tax-deferred retirement savings from accounts likeContinue reading “Roth Conversions: What They Are & The 3 Things Federal Employees Need To Know”

What Federal Employees Should Do 1 Year Before Retirement

Although, as a federal employee, you should begin planning for retirement years before you hand in your application, the year before retirement is critical to set yourself up for the transition. This period is essential since you’ll have limited time to review your finances and make decisions that will affect the rest of your life.Continue reading “What Federal Employees Should Do 1 Year Before Retirement”

How Will Your Federal Retirement Benefits Be Taxed?

Many federal employees don’t realize the impact that taxes will have on their retirement income. But the truth is that if not factored into your retirement planning, taxes can destroy your financial plan. Even if retirement is many years away, understanding how your federal retirement income will be taxed will help you be proactive withContinue reading “How Will Your Federal Retirement Benefits Be Taxed?”

Can You Convert Your Traditional TSP To The Roth?

As a federal employee, there are some major advantages to contributing to the TSP, such as having the choice of making pre-tax (Traditional TSP) or/and post-tax contributions (Roth TSP). Being able to select how you want your contributions treated for income tax purposes is a powerful tax planning tool, but what if you decide toContinue reading “Can You Convert Your Traditional TSP To The Roth?”