Q&A: The Price You Actually Get When You Trade in The TSP

Question

Hi. New subscriber here and now a regular viewer.

What closing price do we get when we do an interfund transfer? Is it that day when we submit the interfund transfer request, or the next day? I kinda know the answer but I’m not so sure. Hope you can help. Thanks

Answer

According to the TSP, interfund transfers “made on this website or the ThriftLine before 12 noon Eastern time are generally processed as of that business day. Requests made after 12 noon Eastern time are generally processed the next business day.”

Question

Can a LEO (special provision) retire after 25 years and access their TSP before the age of 50? Thanks

Answer

As special provision FERS you can not access your TSP before age 50 without a 10% penalty. As long as you retire in the year you turn 50 or later (this would be age 55 for traditional FERS) then you can access your TSP without penalty.

However, if you retire before age 50 (age 55 for traditional FERS) then you would have to wait until 59 and ½ to access TSP without penalty.

Question

I took out a general TSP loan earlier this year. I am now considering retirement (I am 57 with 36 years – full MRA). Do I have to pay off my TSP loan before retirement?

Answer

You don’t have to pay back your TSP loan before retirement but if you have a loan balance at retirement then they will count it as if you took your loan balance out as withdrawal and you will have to pay taxes on that withdrawal.

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Dallen J. Haws, CFP®, MBA

CEO and Lead Planner

Dallen is one of the most sought after federal retirement experts in the country.

He routinely speaks/consults with thousands of federal employees about their benefits and retirement. He is a self-professed nerd about helping those under FERS to maximize benefits, reduce taxes, and retire confident.

He is a regular contributor to Govexec and FedSmith and many other federal employee new sites.

When he is not perfecting retirement plans, you can find him training for triathlons or going on adventures with his family.

Common Questions

What do you do?

We are the go-to financial planning firm/financial advisors for FERS federal employees all around the country (and the world). We help our clients maximize their benefits, reduce taxes, and retire confident.

Who do you serve?

We serve FERS federal employees everyday, all day, and twice on Sunday. We eat and breath federal benefits and are proud to be the go-to financial planners for FERS federal employees all around the world.

How do you make money?

We are a commission-free (a.k.a. fee-only) financial planning firm for FERS federal employees. Our fees depend on the complexity of your situation but our fees are always very transparent. Some financial advisors are commission-based, which may cause fees to be hidden or create conflicts of interest. Not us. Our goal is to lower your taxes, maximize your benefits, and make sure you can retire without worry. For more info about our fees, click here.

Can you meet virtually and work with people in other locations?

Yep! We work with people from all over the U.S. as well as many federal employees who are stationed overseas.

What areas do you help your clients with?

Great question. Here are the 5 areas that we help our clients with:

-Retirement Planning: Planning for the day when work is optional

-Investment Planning: Building wealth for your future

-Tax Strategy: Taking advantage of opportunities in the tax law

-Insurance Planning: Protecting your loved ones and what you’ve already built

-Estate Planning: Planning for those you leave behind

One thing we found that clients really appreciate is that no other financial advisor is able to help them with their federal benefits as well as the rest of their financial lives like we can.

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