AUTHOR: Mark Ukleja on 5/15/2025 FIRST: stelea99 on 5/15/2025 | RECENT: William Perry on 5/18/2025
Comments
Interesting. I've always attacked it from the opposite side and tried to use withholding since that eliminates any potential income matching underpayment penalties and taxes that, my understanding is, could attach to quarterly payments although I guess compliance w the Safe Harbor provisions would resolve that. Plus, no additional IRS paperwork that may be necessitated by quarterlies. . This year and the next few may present more of a challenge as I anticipate large Roth conversions making both Safe Harbor compliance and adequate withholding unlikely. My anticipated approach is to take IRA distributions late in the year with oversized withholding to cover the tax but haven't completely thought this through.
If you're a LedZep fan, try to catch one of Jason Bonham's "Led Zeppelin Experience" shows. Jason is, of course, John Bonham's son. Caught it at Wolftrap in Northern Virginia a couple years back. Fantastic show! Jason is currently touring too! Check www.jasonbonham.net I think.
Great analysis but, as I think has been pointed out somewhere previously, let's not forget about the survivor's tax penalty and the downstream tax advantages for heirs that also come into play beyond just one's current tax situation for MFJ esp w children.
Thanks Eddie. Fortunately I only use the TSP for the G Fund and keep my equities elsewhere so the “pro rata” distribution restriction won’t pose a problem for me.
Yup. Good point to remember. Not sure if it's still $250 but I'm sure it's still a tiny amount. No matter which way I go, I won't close the door completely on the G Fund.
Valid points. I'm probably 10+ years older than you so that might skew my perspective a bit towards more conservative. Also, the 4.5% is just the current July rate and I recognize can and will fluctuate m-t-m. As you note, I realize the 10 year average is much lower as it and every other bond yield was impacted by the overall low rates that have been pretty much across the board over the last decade. Like you, I have much of my portfolio in equities. I'm just not sure there's another fixed income product that provides a better risk adjusted return than the G Fund. I think the G Fund yield also rose w CD rates and similar products during the same time frame. Thanks for the input. Gives me another option to consider.
Thanks, Randy. I guess my thinking is my FERS pension and two social security benefits provide adequate inflation protection for care expenses but you're right that the G Fund can be vulnerable there.
Comments
Interesting. I've always attacked it from the opposite side and tried to use withholding since that eliminates any potential income matching underpayment penalties and taxes that, my understanding is, could attach to quarterly payments although I guess compliance w the Safe Harbor provisions would resolve that. Plus, no additional IRS paperwork that may be necessitated by quarterlies. . This year and the next few may present more of a challenge as I anticipate large Roth conversions making both Safe Harbor compliance and adequate withholding unlikely. My anticipated approach is to take IRA distributions late in the year with oversized withholding to cover the tax but haven't completely thought this through.
Post: If Retirement is Getting Close
Link to comment from August 19, 2026
If you're a LedZep fan, try to catch one of Jason Bonham's "Led Zeppelin Experience" shows. Jason is, of course, John Bonham's son. Caught it at Wolftrap in Northern Virginia a couple years back. Fantastic show! Jason is currently touring too! Check www.jasonbonham.net I think.
Post: FIFA Financials
Link to comment from August 9, 2026
Great analysis but, as I think has been pointed out somewhere previously, let's not forget about the survivor's tax penalty and the downstream tax advantages for heirs that also come into play beyond just one's current tax situation for MFJ esp w children.
Post: Roth Conversions and Taxes
Link to comment from August 8, 2026
Thanks Eddie. Fortunately I only use the TSP for the G Fund and keep my equities elsewhere so the “pro rata” distribution restriction won’t pose a problem for me.
Post: TSP G Fund as the only Fixed Income Investment
Link to comment from June 25, 2026
Excellent! Good to know! Thank you.
Post: TSP G Fund as the only Fixed Income Investment
Link to comment from June 22, 2026
Yup. Good point to remember. Not sure if it's still $250 but I'm sure it's still a tiny amount. No matter which way I go, I won't close the door completely on the G Fund.
Post: TSP G Fund as the only Fixed Income Investment
Link to comment from June 22, 2026
Correction - "core" expenses not "care".
Post: TSP G Fund as the only Fixed Income Investment
Link to comment from June 22, 2026
Valid points. I'm probably 10+ years older than you so that might skew my perspective a bit towards more conservative. Also, the 4.5% is just the current July rate and I recognize can and will fluctuate m-t-m. As you note, I realize the 10 year average is much lower as it and every other bond yield was impacted by the overall low rates that have been pretty much across the board over the last decade. Like you, I have much of my portfolio in equities. I'm just not sure there's another fixed income product that provides a better risk adjusted return than the G Fund. I think the G Fund yield also rose w CD rates and similar products during the same time frame. Thanks for the input. Gives me another option to consider.
Post: TSP G Fund as the only Fixed Income Investment
Link to comment from June 22, 2026
Hmm. I don't know. Maybe when rates are super low, there isn't enough interest to move the dial on a daily basis?
Post: TSP G Fund as the only Fixed Income Investment
Link to comment from June 21, 2026
Thanks, Randy. I guess my thinking is my FERS pension and two social security benefits provide adequate inflation protection for care expenses but you're right that the G Fund can be vulnerable there.
Post: TSP G Fund as the only Fixed Income Investment
Link to comment from June 21, 2026