L1: recalculationI a planning on starting amoritization method August 5th. I also want to recalculate each year. Do I recalculate this coming Jan, and every Jan after, using Dec 31 balance? If so, then the August calculation would be a partial year and 1 time only. Correct?2010-04-02 12:05, By: clester, IP: [18.104.22.168]
L2: recalculationStart by reviewing our Sample Form. Once you pick adate then recalculation will always occur on that date.If you define the recalculation date as January 1, then you would recalculate each year based on the previous 12/31 balance, your attained age in the year the calculation occurs and for example thehigher of the interest rates for previousNov & Dec.Also note, that recalculation may or?????? may not??? result in a higher distribution.????2010-04-02 14:19, By: Gfw, IP: [22.214.171.124]
L3: recalculationSo, If I start in Aug do I recalculate the next Aug or in Jan?2010-04-02 14:26, By: clester, IP: [126.96.36.199]
L4: recalculationYou can pick any date, but using 1/1 or 1/2 is probably the safest. As stated earler, review the sample form as it covers recalculation.2010-04-02 14:37, By: Gfw, IP: [188.8.131.52]
L5: recalculationIt appears from the TSP site that a change in monthly payments must be sent by Dec 15 to be effective Jan 1. This may prohibit me from recalculation because of the Dec 31 balance requirement. I think TSP only allows changes during that time. I guess I could move it to an IRA. Does this sound correct?2010-04-05 14:52, By: clester, IP: [184.108.40.206]
L6: recalculationI am a financial planner and I work with a lot of CSRS / FERS retirees so I have a lot of experience working with TSP. While it is “technically possible” to run a SEPP Plan on a TSP account, it is an inflexible nightmare. From your last post it seems that you have figured out that TSP is not the easiest creature to work with. About the only positive for keeping TSP is the low operating cost, but the negatives far outweigh this positive.As you pointed out, it’s not possible to use 12/31 account balance to make changes for the next year. If you wanted to set up equal payments that don’t change from year to year, you can do that. However, since TSP will only distribute “even dollar amounts,”you will have to be sure to “round down”your monthly calculations to the nearest whole dollar so you don’t exceed the max allowed, monthly SEPP amount due to rounding up.Based on years of experience working with TSP, I have found that the only effective way to deal with setting up a SEPP Plan is to process an IRA rollover using trustee-to-trustee transfer. You will have more flexibility with your investments and definitely more flexibility operating your SEPP Plan. Remember, the people working at TSP can’t provide any investment or SEPP operation advice, and their system is definitely not set up to correct distribution errors in anything of a timely manner.
Process the IRA rollover ane you will be very happy in the long run.
Jim2010-04-05 16:16, By: Jim, IP: [220.127.116.11]