Re: TSP Benefits

I think the only one entitled to an inherited 401k is a spouse or former spouse. My brother passed away recently, was unmarried, and we got all kinds of bad advice about his Roth and IRAs. Bottom line: as a non-spousal beneficiary, I cannot set up an inherited IRA but must begin to take distributions before the end of the year after his death (12/31/2009, in thic case) and must take all distributions within either 5 years or based on the life expectancy of the oldest beneficiary (I guess if that would be less than 5 years).

Re: Single Mom

Your dependent child is entitled to a child's benefits under FERS. However, the child is also entitled to a Social Security(SS) benefit. If the monthly Social Security benefits exceeds the FERS benefit, no FERS is payable. At age 18 when the SS benefits terminates if he is a full time student, the FERS benefit will be payable between the ages 18-22. The child is entitled to health benefits if you had a family plan. If you don't have any survivors or no designation of beneficiary on file, your monies will be paid out under the order of precedence

Re: Life Insurance Policy

Why would you care if it is put into a money market account or paid directly by check? Can't you just write yourself a check for the full amount, thereby closing the money market account?

This might have been set up, like direct deposit of our paychecks, to reduce the possibilities of theft from the mail or to prove the insurance proceeds were, in fact, paid to the beneficiaries.

Re: Life Insurance Policy

When my Mother passed away, her life insurancy company created a money market account and put the proceeds from the insurance in it and sent me a check book for the account. It has worked out fine for me since 2004.