Q. I work for the Centers for Medicare & Medicaid Services and am currently 65 years old. I started working for the federal government on July 4, 2010. The plan is to continue working as long as I can, past 70. When I retire it will be under FERS (born Sept. 12, 1953). Do I start taking Social Security at age 70 if I’m still working? Also, can I continue putting money into my TSP after age 70 and 1/2 (the required minimum distribution age)? Are there any other things I should be aware of if I retire after age…

Q. I am 52 years old and I am currently a government employee. I have approximately $38,000 in my TPS, all in the G Fund and I plan to retire in 10 years. I also have money coming in from an active-duty military retirement. I was thinking of transferring the entire balance to the L2030 to try and maximize growth over time. Is this a good decision? A. It’s impossible to say from the information you’ve provided here. If you don’t know what to do, I think you allocate your TSP money into the L Fund that most closely corresponds to your…

Q. I currently work for the U.S. Postal Service and have 38 years of service. I’ll be 66 years old in December 2019 and can collect my Social Security benefits in full while still working at the Post Office. Will they still reduce my benefits (government offset) even though I’m not retired or collecting my CSRS pension? A. The Social Security earned income offset will not apply to your Social Security retirement benefit once you reach your Social Security Full Retirement Age. The windfall elimination provision is calculated based on your earnings history and will be applied whether, or not,…

Q. I was speaking with a Thrift Savings Plan representative recently and they said that not all of my years working with the federal government were vested. I started my career with the Federal Deposit Insurance Corporation (FDIC), then went to DoD, and now I’m with the Department of Veterans Affairs. I have 25 years served all together with just one break in service of two years. Do I need to speak with each agency to see if I’m vested? A. From the TSP Bulletin 15-1: Thrift Savings Plan Vesting Requirements and the TSP Service Computation Date: The TSP Vesting…

Q. I have often read you stating to put your TSP in the L Fund most closely matching your expected life expectancy if you are not able to analyze the market (which I am not able nor willing to hire someone to do that). I am a former FERS employee, retired at age 56. I am now 59 and I only have $120,000 in my TSP and hope to wait until age 70 (or just leave it alone for my sons), if possible. I wondered if the L Fund most matching your life expectancy is suggested for a current employee…

Q. What happens to life insurance you have been paying throughout the service after you retire? A. I’m not going to try to cover all of the possibilities here. An explanation is provided on pages 15 through 20 of the booklet at https://www.opm.gov/healthcare-insurance/life-insurance/reference-materials/federalbooklet.pdf.

Q. I am wondering how Lifecycle Funds value are determined. For instance, the L2050 Fund is less expensive than the L2020 Fund and the L2050 is the more aggressive fund meaning it has a higher percentage of C, I and S. I don’t understand how this works. Additionally, I tabulated each of the L funds by taking the percent allocation multiplied by the cost of the fund and it is less expensive for me to allocate the same percentages of any of the L funds (outside of L2050) directly versus the subsequent L fund. For example, as of this [April…

Q. If I retire on Dec. 31, 2019, I will not be paid for annual leave I have saved until sometime the next year (2020). Does that money count against my 2020 Social Security earnings limit ($17,000), reducing my Social Security payments, or does it not count as earned income in 2020 (since I accrued it in previous years)? A. For purposes of the Social Security earned income offset, income counts in the year that it is earned, rather that the year in which it is paid.

Q. I work for the U.S. Postal Service and would like to resign at 58 with 24 years of service. I will postpone my annuity date till I am 60 years of age, but I need to tap into my Thrift Savings Plan to tide me over for the two years I am waiting for my pension. Will I face the 10 percent penalty since I am not 59 1/2? I am retiring, but delaying the pension to avoid the 5 percent per year under 62. Would I need to use the lifetime average or could I set the amount I want to…

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