Are you looking to Retire Early, but don’t want to pay a penalty to access the money you saved before you turn age 59.5?
Got a ton of retirement money stashed in the TSP, an IRA, former employer’s 401k, or other Qualified Retirement Plan?
Are you also looking to implement a withdrawal strategy that does not force you in to a 5-year waiting period like the ‘Roth Conversion Ladder’ does?
There’s a perfectly legal method to get to your Retirement Plan money at age 55 without paying a penalty, and it’s called the Solo 401k.
Recently the WSJ posted an article about all the bookkeeping, tax filing, legal, and administrative fees necessary to operate a company’s 401(k) program
on behalf of its employees. This, by the way, is on TOP of the expense ratios charged within the mutual fund investments available inside the Plan.
If you work for a small company, these administrivia fees add up (and NOT in your favor). Vanguard – the low cost provider of all things investing- estimates these charges as totaling 0.25% in a very large company plan, and 0.58% for a smaller company plan.
It’s going to take a while, but the Thrift Savings Plan has approval to move forward with slacking the noose of rules around TSP Withdrawals. Continue reading
I’ve written before about ways to navigate the rules for making TSP Withdrawals after Separation from Federal Service. Unlike an IRA (or most employer-sponsored 401k plans) the Thrift Savings Plan (TSP) has strict rules on when and how you may withdraw from TSP – Each one of these TSP Withdrawal events is like using up a ‘Silver Bullet’ from your retirement savings arsenal.
I’ve read many posts here lamenting how inflexible TSP is in allowing withdrawals.
Faithful Gubmints readers, know that there are technically FOUR ways to perform partial withdrawals from your TSP Account. Continue reading