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Purchase of two annuities
By Mike Miles on	 April 2, 2015 annuity, IRA, TSP contribution, TSP withdrawal
Q. Will TSP allow me to purchase one annuity from MetLife and a second annuity from a different provider? The state I live in only insures annuities up to $250,000 and I'd like the remainder of my TSP balance to be insured by purchasing a second annuity from a different provider. Are there any strategies I could employ to accomplish my goal of insuring the entire TSP balance that I'd like to use to purchase these annuities?
Substantial income
By Mike Miles on	 January 27, 2015 annuity
Q. What sources of income are considered in calculating the substantial income that is defined for purposes of reducing the Windfall Elimination Provision? W-2 wages? Self-employment wages reported on a 941? Contract wages reported on a 1099? State teacher retirement pension? One time lump-sum supplemental pension amounts? A. Any earnings which were subject to Social Security taxes count. Check your Social Security statement for a history of these earnings.
Minimum distribution date
By Mike Miles on	 September 22, 2014 annuity
Q. When must I begin making my required minimum distribution? Since I turn 70-1/2 late in the month of April, I'm not sure about the requirement. A. If you're separated from federal service, your first distribution, for tax year 2015, will be due by April 1, 2016. If you're still working, then it won't be due until after you retire.
TSP after separation
Q. If I separate from government service after 10 years at age 35, can I withdraw a chunk of my TSP and ask for annuity payments of 10 years or more to avoid the withdrawal penalties? A. In order to withdraw without penalty, you must meet one of the exceptions listed on Page 7 of the notice at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf.
Distributions penalty?
By Mike Miles on	 September 3, 2014 annuity
Q. If I retire at my MRA, which is 56, with 31 years of service, will my distributions be subject to the 10 percent penalty if I am under age 59-1/2? A. No.
TSP annuity
By Mike Miles on	 August 18, 2014 annuity
Q. My question has to do with choosing to withdraw my TSP account upon retirement. I understand I can leave my balance with the government and either choose equal payments for my expected lifespan or have the government purchase an annuity on my behalf. What I do not understand is the difference between choosing equal payments for the rest of my life and purchasing an annuity solely for myself? What are the pros and cons for each? I also don't understand why I am also given a choice to choose a survivor benefit with my wife as the beneficiary should…
Annuity fees
Q. I know you are not a CPA but I thought this has probably been asked before and that you might have an answer. Are annuity fees tax-deductible on traditional IRAs?
TSP annuity taxation
By Mike Miles on	 August 6, 2014 annuity, FERS
Q. I retired 2+ years ago under FERS with a substantial TSP account that I have not touched. I am looking at purchasing an annuity through TSP versus regular payments based on life expectancy (essentially the IRS required minimum withdrawals that I must start next year). I understand how the RMD is taxed. How will the annuity be taxed? Is there a source that explains the calculation?