Retirement CARES Act Withdrawal

[KnockKnock]

IF YOU QUALIFY FOR IT, the CARES Act just gave us a chance at our TSP money that we wouldn't otherwise have until retirement. I withdrew my entire traditional balance to pay taxes on it over the next couple of years and will put it into a Roth IRA. Then when needed, I can still withdraw the contributions, but reduce that retirement tax bill.

 

[32andBelow]

IF YOU QUALIFY FOR IT, the CARES Act just gave us a chance at our TSP money that we wouldn't otherwise have until retirement. I withdrew my entire traditional balance to pay taxes on it over the next couple of years and will put it into a Roth IRA. Then when needed, I can still withdraw the contributions, but reduce that retirement tax bill.

You can also take a bigger tsp loan than usual

 

[mnsalty]

You can also take a bigger tsp loan than usual

That info was in a natca email I glossed over, right?

 

[32andBelow]

That info was in a natca email I glossed over, right?

Nah

 

[Ad1234]

You still pay the 20 percent capital gains tax?

 

[Dontbotherme]

You still pay the 20 percent capital gains tax?

15% unless you’re making over roughly $440K (single and $490K married and filing jointly). You can also pay all or a portion back, into your TSP, with no taxes due on the repaid portion IF it is repaid within three years. (Example: take $100K out and repay back $80K. You’d pay back $1,026 PP into your TSP and you’d be taxed on the $20K ($3,000). That’s at least my understanding of the CARES Act. Also, it appears you can push payments back to start as late as December 2020 so that’s when your three year clock would start. Finally, I also read that student loan interest is suspended through September 2020. If anyone owes student loans, now maybe a good time to pay a little more as you’re paying straight principle...
*edited for additional information