2022 TSP fund performance was dismal. One TSP stock fund was down 26%. What happened after the last significant yearly loss?
2022 TSP Fund Performance Went from Bad to Worse.
As 2022 comes to a close, many Thrift Savings Plan (TSP) investors will be glad to see this year come to an end as it has put a dent in the overall performance of the TSP funds. The year did not start off well. Click HERE for full article.
There is late breaking tax & retirement planning news:
The Secure Act 2.0 has been approved by Congress and is awaiting President Biden’s signature into law.
This new law expands upon The Secure Act 1.0 which was approved in December of 2019. Some of the highlights are:
Allows for a $50,000 IRA Charitable Rollover to a Charitable Gift Annuity or Charitable Remainder Trust
Taking the wrong step could be costly.
Public sector workers with a Thrift Saving Plan (TSP) may be tempted to move their retirement funds elsewhere. TSPs, though generally great products, aren’t flawless and tend to lose their appeal once the participant’s days as a federal employee are over.
A popular option is to move accumulated capital into a separate individual retirement account (IRA). If your retirement contributions have already been taxed and are sitting in a Roth TSP, opening a Roth IRA, an account that also is funded with after-tax dollars, to house your savings can make a lot of sense. These accounts offer a wider selection of investment options and more flexible withdrawal rules, including the option to let your retirement money sit there for as long as you like.
In this article, we’ll talk you through how to move your retirement funds from a Roth TSP to a Roth IRA and flag the most important things to be aware of before proceeding. Click HERE to read more.
A traditional IRA or a Roth IRA owner can name any adult as their IRA beneficiary. The IRS owner simply names an adult on the IRA beneficiary form. But this is not the case if the IRA owner wants to name a minor as beneficiary. When a minor inherits retirement dollars, the child is not legally able to make decisions with regard to finances. Some type of custodian or guardian will be needed. A potential problem is that not all IRA beneficiary forms allow nomination of a guardian.
Another option is to name a custodial account for the minor on the IRA beneficiary form. Custodial accounts established either the Uniform Gifts to Minor Act (UGMA) or the Uniform Trusts to Minors Act (UTMA) can be used for this purpose. The IRA owner names the custodian of the account on the IRA beneficiary form. Please click HERE to read more.
As the 2022 year ends, Federal Employees and Retirees need to consider many decisions about their benefits, taxes and their Thrift Savings Plan. Open Season is the time to review your health insurance pertaining to the benefits that may be needed in the coming year such a new baby or required surgery. It may be necessary to change your policy in order to save money especially if your premium is going up next year. Here are seven thoughts that should be considered during open season and before 2022 ends.
1. FEHB decisions include, health, dental and vision plans. Saving on premiums with a lesser expensive plan or reducing from a family plan to self plus one plan.
2. TSP contributions for the following year. The maximum allowed by the IRS has increased for 2023 to 22,500 and for those over 50 years of age to 30,000. Click HERE to read more.