Even the most experienced investors in the federal government’s retirement savings program, the Thrift Savings Plan, may find some things about it surprising. With that in mind, I decided to present a short quiz this week on TSP facts and statistics.
When you’ve completed the quiz, click here for the answers.
1. When should you make your request to withdraw funds from the TSP?
a. When you are 70 ½ years old, whether you are still working or are separated from federal service
b. No later than the end of February of the year after your separation from federal service if you are over age 70 ½
c. April 1 of the year after you are separated if you are already over 70 ½
d. The TSP does not require that you withdraw funds from your account until you want to
2. The TSP will declare your account to be abandoned when:
a. There is no activity in your account, such as interfund transfers, monthly withdrawals or contributions
b. You don’t respond to the TSP’s notice that you must make a withdrawal request by the required minimum distribution deadline
c. You are on active-duty military service
d. You neglect to make a withdrawal election after you separate from federal service
3. How many abandoned TSP accounts were there in 2014?
4. If you do nothing after you reach age 70 ½ and are separated from federal service, the TSP will:
a. Notify you before your required withdrawal date and mail you important tax information about your TSP withdrawal, as well as information about minimum distribution requirements under IRS rules
b. Send your required minimum distribution in a lump sum to the last address that is on record
c. Contact the IRS to have you prosecuted
d. Both a and b
5. What was the total amount of unclaimed and abandoned money in the TSP in 2014?
6. As of April 2015, what percentage of the total assets of the TSP were invested in the G Fund?
a. 88 percent
b. 54 percent
c. 10 percent
d. 34 percent
7. What were the TSP’s total plan assets as of April 2015?
a. $453 billion
b. $453 million
c. $453 trillion
d. $4,530 billion
8. What was the average TSP account balance of a Federal Employees Retirement System participant as of April 2015?
9. Out of 4.7 million FERS participants, about how many are only receiving the agency 1 percent automatic contributions and are not contributing or receiving any matching contributions?
10. What is the most important thing that you should do with your TSP account after you separate from federal service?
a. Make required minimum distributions
b. Transfer the entire account to an IRA
c. Take a monthly payment
d. Keep your address up to date