Q: I am a 52-year-old law enforcement officer, 6(c) designation, and retired under the Federal Employees Retirement System this past year. Although I thought I had a good handle on this from your website, I am confused by a retirement guide an LEO put out indicating the following: “If you continue your agency employment at least one day into the calendar year of your 55th birthday, you may make unabated penalty-free withdrawals from your TSP account upon retirement. You cannot roll over your TSP and make penalty-free withdrawals at 55.” The first part indicates than an LEO must work until…
Monthly Archives: July, 2011
Q: In a recent response, you recommended a reader not take out an annuity using Thrift Savings Plan funds. Do you consider these annuities unsafe? I am thinking of taking an annuity when I retire to guarantee an income (along with my regular annuity and Social Security). I’m not sure that I would get enough through taking a set amount each month, or that it would last for the rest of my life. What do you see as the problems with the MetLife annuity? Are there fees for administering the account? A: Because it is an irreversible action, I generally…
Q: I have five years of military service that I am considering applying to my federal retirement years. I have waited way to long to do this and am hoping I could use my Thrift Savings Plan monies to pay for the military service, similar to rolling over an individual retirement account. Is this possible? A: A rollover to the Federal Employees Retirement System or the Civil Service Retirement System for service is not allowed.
Q: Wouldn’t someone have a penalty for taking out Social Security benefits before age 66 such that the person would not be getting $21,000 at age 62? A: No, $21,000 is approximately the maximum Social Security benefit at age 62.
Q: What effect would a government failure to extend the debt ceiling have on the TSP ‘G’ fund? A: It should have no effect.
Q: May I make a partial withdrawal from my TSP account when I retire, if I am 55 years old? A: Yes.