TimeRunner wrote: ↑
Sat Jun 08, 2019 9:55 am
I don't see why there cannot be a form for the spouse to sign that, until superseded by the spouse, the spouse agrees to waive all approval requirements. The spouse can still be notified when withdrawal options or installment payment amounts are changed. Thus, there would be a hopefully one-time spousal waiver, after which online changes to withdrawal options or amounts could be processed without paper forms, notary, and other overhead.
For annuitants, Fido, Schwab, Vanguard, etc, still look like better alternatives than keeping everything-but-G-Fund money in the TSP, unless they change the rules.
As always, I agree completely with TimeRunner.
During her career, my wife had three separate 401(k) accounts with three different employers. Last year, after she retired, she moved all three 401(k) accounts to IRAs and Roth IRAs with Merrill Edge and Schwab, collecting nice transfer bonuses. In no case was I required to sign off on any of this. Given that this was money she saved through her employment, I was perfectly fine with that. Likewise, I see no reason why my wife should be able to stop me from using, as I see fit, the money I saved in my TSP account. So, my first point is that spouses, lacking a court order, should have no right to block TSP participants from doing whatever they want with their TSP accounts. Imagine, please, a case where a married couple is separated or living far apart. It could be difficult to obtain the spousal waiver. Even more problematic is the situation where the spouses don't get along. A spouse can block the TSP participant from making any TSP withdrawals.
If this is too radical for the Federal Retirement Thrift Investment Board, a second best solution is the one TimeRunner has outlined -- a general spousal waiver that can be withdrawn any time. That could work if the spouses get along.
I hope TSP participants will comment to the FRTIB that they want the ability to make Roth conversions within their accounts. This is less important to me, now that I'm retired. But, it will be important to those TSP participants who are still working and saving for retirement.
I also agree that after the new withdrawal rules take effect in mid-September, I'll withdraw all of my Roth TSP and everything else except my non-Roth G Fund and move those assets to one or more low cost brokerages that will give me significant transfer bonuses. Other than the G Fund, I see no reason to retain retirement assets in the TSP.