Tax Traps for Federal Employees to Avoid
The author outlines some retirement tax traps for federal employees that can be avoided with proper planning.
If you are a federal employee, you may be wondering how to plan for your retirement and make the most of your Thrift Savings Plan (TSP). The TSP is a tax-advantaged retirement savings plan that allows you to invest in various funds and options, depending on your risk tolerance and goals. On this tag page, you will find articles and resources that will help you understand the benefits and features of the TSP, as well as tips and strategies to increase your investment returns and secure your future income. You will also learn about the latest news and updates on the TSP performance, fees, withdrawals, and more. Whether you are just starting your federal career or are near retirement, these articles will provide you with valuable information and guidance on how to make the best use of your TSP.
The author outlines some retirement tax traps for federal employees that can be avoided with proper planning.
Certain “special category” federal employees will benefit from a provision in the new tax and spending bill that extends penalty free withdrawals from the Thrift Savings Plan under certain conditions.
A co-worker recently told me that I could contribute to both an IRA and the TSP. Is this true?
How much can you contribute to your IRA in 2016? Can you contribute to both your IRA and TSP accounts?
I’ve heard that 2016 will have 27 pay periods. Is that true? If it is true, how will it affect my TSP contributions?
Stock market returns so far in 2015 have disappointed many investors who may have gotten used to the returns the C fund enjoyed over the past three years. On a more positive note, most of the Thrift Savings Plan (TSP) stock funds showed positive returns for November.
All TSP funds had positive returns in October, and the C fund had its best single month return in four years.
A new recommendation for the TSP would change the current investment structure of these funds.
Congress recently passed a long sought after bill which will change the rules for special category federal employees and their ability to access their TSP accounts. The author describes what the new law does and how it will impact those federal workers to whom it applies.
The Internal Revenue Service has announced the annual contribution limits for the Thrift Savings Plan and other similar retirement/pension plan contributions for 2016, most of which are unchanged from 2015.