All Forum Posts by: Gregory A.

@Carl Fischer

Thank you for the reply and the information. I don't have an accountant but perhaps it is about time to get one or at least a tax professional. The money I am looking to pull out of the account is just $30,000 with about $23,000 in contributions and $7,000 in earnings. As far as my tax bracket, I will probably gross around $80,000-$85,000 this year, but I do have a company 401k(traditional) with match that I contribute to, only 5% for the match and then an extra $5,000 flat for dependent care and another $1,000 towards an HSA. I was also a full time student for the spring semester in addition to my job so that may assist in additional deductions but those expenses were fully covered by my post 911 GI bill.

Do you happen to know if I can further deduct the rest of my dependent care? Daycare for the year is close to $12,000 which is greater than the $5,000 maximum contribution I can allocate to the FSA for dependent care. I may need to make another post about this as it is a separate issue, or just actually get a CPA on my team to give me detailed answers.

Thank you for your time again Carl.

Hello Bigger Pockets! I am seeking some advice on withdrawing from my Roth TSP. I finished my active duty last August and have not done anything with my TSP since then. It has continued to grow, but I am interested in pulling all of the funds out to use for investing in deals for myself. I know there are some incentives to using a self-directed IRA, but I am not interested. I am more interested in liquidating this asset.

What I know currently is since it is all roth contributions and earnings and the account is over 5 years old that it should not accrue the early withdrawal penalty of 10% from their website and video posted on their website. It would also appear, that I would not be paying any income tax on the roth contributions since I already paid those taxes, but I would be liable for taxes on any roth earnings that I would take out at my federal/state income tax rates since I am withdrawing early ( I am 32 years old). 

Does any have any experience on dealing with TSPs and what kind of tax implications I am subject to?  I believe I read through all of the material available on their website but I'd rather consult an actual tax pro that may have experience.  

Thank you for your time guys.

Greg

@Franklin Romine 

Thank you very much for that information.  That is very helpful in understanding the difference between the two deal structures.

Hello BP! I have about $30k in my TSP(government 401k for service members) that I am looking to roll into a self directed IRA so that I could invest it into a multifamily real estate deal. How does the logistics of this work? This IRA has not been performing very well as it is so I am looking to move it either into my own self directed or into my new employers matching 401k program. Thanks for the help.

Is this loan based on you occupying one of the units for that low down payment and interest rate?

@Randy Frederick thanks for reaching out! I would love to get together sometime and talk shop.  I am mostly free next week and if you got time would be nice to talk and see if maybe our goals would match up.

Feel free to message me. I will send you a colleague request so you can easily find me.  Thanks and look forward to chatting with you.

@Luke Miller wow that is really unfortunate for all of those expenses to have come up at the same time.  Looking back on it now, realizing hindsight is always 20/20, could you have seen those components failing? As in, were there good signs or was one breaking and the other was probably close enough, so you just went ahead and replaced them both while you were already in there?

Does that monthly cash flow include your mortgage expense?

@Sam Levine that was an "ah hah" moment for me just now. I didn't think about the fact that you would have to force one of the tenants out. The only experience I have with 5-6% being more realistic is from books that I have read, most recently Brandon Turners on real estate investing. But a total of about 40% expenses which is about what you have seems about right. 

I also see that you updated your numbers a bit there since I last looked at it.  So, in reality, since you are not paying for management at the moment, and you are missing 700 in the interim until you decide to move out, you are gaining equity on your purchase at the rate of only Cashflow(46.76) + Management(256.67) - Your unit(700) = -396.57. That seems like a success to me honestly for paying down the mortgage at only $400/month and that is also assuming that your repairs are that high, which likely they won't be since you are living in the unit. I would say it is a good success!

@Sam Levine congratulations on your first purchase. Those repair, CapEx expenses seem high no? I've always seen 5-6% so are you just being safe with those estimates? Lastly, I am not familiar with the "Cost to Break Lease" term. What is that and what does that number reflect? Did you collect that "Pro-rated Rent" from the seller since it may have been mid-month or something along those lines?

Congrats on your big deal!