An annuity is one of several withdrawal arrangements available in the Thrift Savings Plan (TSP).
While only a tiny percentage of TSP withdrawals allow annuity purchases, ensure that you understand the benefits of investing in annuities before discarding them as a possibility.
For one point, the TSP’s annuity payout offers more flexibility compared to the standard FERS or CSRS retirement benefits.
The TSP offers three basic annuity options:
• Single life annuity – a one-time payment made only to you during your lifetime.
• Joint life with spouse annuity – a payment made to you and your spouse while both of you are alive. When either one of you dies, the surviving partner will get an annuity for the rest of their life.
• An annuity granted to you while you and another person (not your spouse) are still living while you and someone else (not your spouse) are still alive. This person must have a strong desire to help you. The survivor will receive an annuity for the remainder of their life if one of them dies. In countries that recognize common-law marriages, a former spouse, blood relatives, adopted relatives who are closer, or a person you are living with or in a relationship that could constitute a common-law marriage are judged to have an insurable interest in you.
Joint Life Annuities can provide a survivor benefit of either 100% or 50%. When either of you dies, your monthly payments will continue in the same amount (100%) or be reduced by half (50%) to you or your joint annuitant.
The basic annuity types can be paired with a variety of annuity characteristics. Increasing payouts, cash refunds, and a 10-year guaranteed payout are among them.
With the fundamental annuity kinds, a variety of features can be combined. Increasing payments, cash refunds, and a 10-year guaranteed payout are some options.
Suppose you (and your partner annuitant) die before taking money equal to the balance used to acquire the annuity. In that case, a designated beneficiary will receive a cash refund of the difference between the payments amount and the funds used to purchase the annuity. If you die within ten years after the start of the annuity, the beneficiary will receive the remaining payments.
Not all features are compatible with all types of basic annuities. Also, once an annuity is purchased, the funds are transferred to a private corporation, and that company, rather than the TSP, provides the benefit.
You can visit www.tsp.gov to use the calculator functions to see how a certain sum might translate into income under various scenarios.
Contact Information:
Email: [email protected]
Phone: 6023128944
Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!
