Q: I retired as a Federal Employees Retirement System annuitant Feb. 1, 2006 at age 62 plus a couple of weeks. If I am rehired, can you tell me:If I have the maximum withheld for retirement ,including the over 50 extra amount, deducted and invested in the TSP am I matched by the federal government for 5 percent plus the over 50 amount withheld? Are all government matches vested from Day One for as long as I decide to work? I left my TSP with the federal government, and I have not taken anything from the TSP. I currently work…
Monthly Archives: March, 2010
Q: If I retire at the end of 2010 and receive my lump sum annual leave payment in 2011; will I be able to put money into an IRA or the Thrift Saving Plan in 2011, even though I did not actually work that year? In other words, would the lump-sum payment in 2011 be considered earned income? A: No. The payment is considered deferred compensation and is not a basis for contribution to an IRA or the TSP.
Q: If I retire at the end of 2010 and receive my lump sum A/L payment in 2011, will I be able to put money into an IRA or a TSP in 2011 even though I did not actually work that year? Would the lump-sum payment in 2011 be considered earned income? A: No. The payment is considered deferred compensation and is not a basis for contribution to an IRA or the TSP.
Q: What happens to IRA basis when a Traditional IRA is rolled into TSP and there was a basis of $18,000 that was put into IRA after taxes? A: In order to transfer an IRA balance into the TSP, you must sign a statement saying that it contains no basis. If you did this, you basis is lost and all withdrawals from the TSP are taxable income.