Wednesday, September 9 2015
Fifteen federal organizations are urging Congress not to use the Thrift Savings Plan (TSP), the federal government’s retirement savings program, as a revenue source.
In a recent letter to House and Senate leadership, members of the Employee Thrift Advisory Council (ETAC) Chairman Clifford Dailing (NRLCA) urged them to “declare the TSP off-limits as a source of revenue” to reassure federal employees that their retirement savings will be left untouched.
“The TSP is an important part of the retirement system for federal employees. For some in the military, it may be their only retirement savings during their service years. Without it, most will not have sufficient retirement income,” Dailing wrote.
Below is a copy of the letter sent to congressional leaders:
[gview file=”http://www.postal-reporter.com/blog/wp-content/uploads/2015/09/ETACltr.pdf” save=”0″]
I just retired and am 57 years old, I was under the impression that I could take out my funds now from TSP and pay a 20% penalty, are you not penalized when you turn 59 1/2????
You will avoid the early-withdrawal penalty on money you take out of your TSP if you separate in the year in which you turn 55, and leave your funds at the TSP. – See more at: http://www.fedsmith.com/2015/05/25/strategies-for-avoiding-the-tsps-early-withdrawal-penalty/#sthash.NBBhJNRx.dpuf
Government has to fund all the entitlement programs. Vote for the party that will give you the free ride. And our borders are open to even more disadvantaged looking for a better life, and a hand out. None of these leaches have any funds in TSP but the politicians must feed the entitlement beast. Your TSP was never yours to begin with. Government saw fit to let you think that but all it takes is a majority vote and your TSP is theirs. Even if you withdraw, all government has to do is vote to take your money from wherever it’s deposited. Of course they’ll leave you a promise to repay with inflated dollars.
The “G” fund is, BY DEFINITION, a loan to the federal government. More meaningless nonsense from politicians that couldn’t balance their own checkbooks let alone understand the federal budget.
There is no credit risk because they own the printing presses. The dollars may be worthless but you’ll always get them, in fact the guaranteed return is unmatched anywhere else. As for the stock portion I agree with the other posters, I would not leave that portion of my funds in the TSP after 59&1/2.
Hey don’t worry about it, they will leave a IOU.
I Know that congress will do what ever it takes to ruin the TSP. Congress just weakened the ERISA last December. The leaders of our country only care about helping business bastards. The government has convinced many people that all they need are guns and religion. You aren’t to think of economic justice, only yourself! In the past, people fought back. Why not now? Most people live their lives based on emotions, and not on intellect. The time has come to study of the struggles of the past.
thanks, Sgt Joe Friday, I am 58 and have retired from PO on 6/30/15. Should I wait until I am 591/2 to transfer my Thrift into my Credit Union IRA which by the way has no fees or should I do it now.
I retire at the end of next year, and I’ll still be 56, so I can’t do anything until 59.5, but if it looks bad for government starting to dip into TSP, I’ll go elsewhere. My insurance agent has told me about some annuities his company has that look nice, just for an example.
ps…..if you do not transfer your TSP out of corrupt govt control when you hit 59 1/2 than you deserve what happens next!
they sacked social security and now with 18 Trillion in federal govt debt they are coming for your G Fund…….they can not get the money from the stock funds……yet!
evil Rethuglicans and DemonKKKats………two sides of the same janus coin.
Donald Trump, Bernie Sanders, or Hilderbeast……..who would grab your TSP first?
Is such a change, even legal? Does such a fund-raiding require an act of congress? R their any people representing us who aren’t too stupid or too lazy 2 know the answer? Someone competetent, please respond.
If they do that I will withdraw every cent and do it in my own account…..
Stupid even to think about this….