Q. I have been employed in the federal government for approximately 23 years. I have been covered by FEHB the whole time. I may retire in the next two or three years, based on LEO retirement. My spouse worked for the federal government for 17 years under FERS, but resigned when we had children. She has been continuously covered by my FEHB plan. She intends to collect her pension when she turns 62. When I retire, will I need to elect the survivor benefit on my pension to ensure that she has FEHB coverage should something happen to me or can she get…
Author Mike Miles
Q. I’m a Department of Homeland Security FERS employee (age 45, 25 years of service) under special category (law enforcement) for early retirement. I would love to retire this year, but do not want to get locked in until 59 ½ if I choose to withdraw TSP funds under 72(t). Is there another way for me to withdraw from my TSP without incurring a penalty? My suspicion is that I will have to wait another four years until I’m 50 with 30 years of service.
Q. I retired some time ago and have a question about life insurance. I am closing in on 65 and the Office of Personnel Management said my life insurance would go up quite a bit by 65. Do I keep any of it (I have Basic, Option A and B)? I am starting to check out term life and comparing, but I am not sure how much of an increase my life insurance will go up. Life insurance companies I have talked to say the U.S. Postal Service rates are way bigger than what I would pay with them, this…
Q. I am a member of FERS, and I am trying to gain a better understanding of my options for avoiding the 10 percent IRS penalty for early withdrawal. I am wondering what the impact would be if I resign from the federal workforce in my 40s to take a job in the private sector for a period of time (say until I am 55). Upon retirement from my private-sector job, assuming that I am able-bodied with no medical issues or high medical bills, is there any way that I can begin taking monthly payments from my TSP funds without…
Q. I am a 58-year-old FERS retiree, retired two years ago, and unfortunately only have $120,000 in my TSP. I will try not to take out any money until I turn 70, if possible. What L Fund do you recommend I keep my money in? I cannot tolerate loss at this point, but would like some growth.
Q. Hello, I will be 58 years old on November 9, 2018, and am a recent FBI retiree as of December 2017. I retired after 30 years and 4 months of FBI service. Briefly, I was told by our FBI TSP office recently that a new TSP withdrawal rule is now in effect. If any federal government employee retired after age 55 (I retired at age 57), they can now begin withdrawals from their TSP accounts without worrying about next year’s 10 percent IRS tax penalty. I need final verification regarding this matter. Thanks.
Q. I recently attended a U.S. Postal Service retirement seminar not sponsored by the USPS. While good information was given relating to how FERS, the SRS and the TSP work, at the end of the meeting the speaker mentioned the option of rolling over your TSP into what he called a “G-C Fund” that he said will never lose money. Do you know about this? I can’t find anything online about it and I’m skeptical.
Q. Does contributing to the Roth TSP affect my Roth IRA annual contribution limits? Can I submit up to the limits of both in the same year ($18,500/year Roth TSP and $5,500/year Roth IRA) if I have a Roth IRA account in addition to my Thrift Savings Plan account?
Q. I plan to retire in 2019 at age 62 with $1.3 million in my Thrift Savings Plan. I am thinking that I will withdraw from the TSP more heavily in my first 8 years of retirement and wait until 70 to collect Social Security, because of the guaranteed 8 percent return rate. But I realize Social Security benefits may decrease or be limited in the future. And, obviously, if I die sooner rather than later, my survivors take a hit and the government doesn’t pay anything. Thoughts?