Discussion of TSP issues by the people who know

March 30, 2015 — This week on For Your Benefit, join hosts Bob Leins and Tammy Flanagan as they welcome Federal Retirement Thrift Investment Board Executive Director Greg Long and Director of External Affairs Kim Weaver to the studio.

With the discussion of using a loan from the G Fund to help fund the federal deficit, TSP participants in our seminars and emails are confused as to what will happen to their investments.

As they have in the past, the TSP’s leaders once again reassure the public that their G Fund investments are in no way jeopardized by the government’s plans to borrow from them on a temporary basis. As Long says, “there is no impact to the participant.”

Additional topics for today’s show include:

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  • discussion of the House budget proposal in Congress about resetting the interest rate paid on G Fund investments;
  • the TSP’s YouTube channel with attention, among other subjects, to awareness of being targets of unscrupulous financial “advisors.”

Also in today’s show:

  • One of the monthly distribution options from the TSP allows for a reset of the monthly distribution amount each December for the coming calendar year. There was discussion that there could be two reset dates – one in December and one at the end of June. What is the current status?
  • Will the TSP provide for state income tax to be withheld from distributions?
  • Is it possible that the “mirroring effect” will be softened or eliminated with regard to Roth TSP distributions and their impact on traditional TSP distributions?
  • Is there a TSP distribution choice that would allow specific distributions from specific funds under consideration?