FERS vs. FERS disability


Q. I have 27 years as a federal law enforcement officer under my belt and four before I am mandatory. If I retired on disability, would it affect my 401k and health insurance? I had a kidney transplant in 2011 and open heart surgery for aortic sleeve and valve replacement. I need my current health insurance just to help me with medication costs. Could I access my 401k while waiting to be approved? How long does one receive disability retirement assistance?

A. Assuming that by “401k” you mean “TSP,” you may have access to your money through a loan or an in-service withdrawal while you are still employed, if you meet the requirements, which are explained at www.tsp.gov. Once you are retired, you will have full access to your TSP money through a lump-sum withdrawal of monthly payments.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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