Q. I’m a 57-year-old FERS employee with 21 years of service. My human resources benefits adviser said I will be eligible to retire on unreduced immediate annuity at 60 years old with 24 years of service. Would I be eligible for the special retirement supplement when I retire at 60 years old? The HR benefits adviser also said I can retire now on MRA+10 provisions, but my annuity will be reduced by 5 percent for every year I’m under 62. If I retire now, since I’m over 55 years old, would I be able to withdraw my Thrift Savings Plan…
Author Mike Miles
Mike Miles
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.
Q. I have not worked since fall 2011. I’m on leave without pay with the Postal Service. Currently on disability retirement approved by Social Security and the Postal Service. The Office of Personnel Management has until November to finalize the disability retirement. On Sept. 23, I default on my Thrift Savings Plan personal loan ($5,300). I am entitled to agency retirement pay of $1,645 per month but cannot be paid until OPM acts. Social Security is roughly ¼ pay, and I cannot realistically pay the catch-up amount and the two monthly loan payments for at least two months. At that…
Q. I plan to retire in 22 months when I will be 62.1 years of age. I will retire in Virginia and immediately move to Texas. I estimate that I will be earning approximately $133,000 from CSRS, $6,900 from Social Security and $18,000 from Army retirement. I already have two properties in Texas and plan to buy my live-in home in San Antonio shortly after I arrive in Texas. I plan to cash in my Thrift Savings Plan at age 62 in Texas and use 100 percent of it as a down payment for the purchase of my home in San…
Here’s the problem with risk: It’s important and few of us understand it very well, much less know how to control it or, better yet, how to use it to our advantage. Risk is like a shark swimming silently below you … in the middle of the ocean … at night. It’s invisible, but, nonetheless, it’s a threat. Imagine that you are stranded at sea, waiting to be rescued. What kind of shark is it? How big is it? Is it hungry? Is it alone, or are there others? These would be good things to know if you were trying…
Q. I am retired military, drawing Social Security. I am planning on retiring from the federal government soon. If I take all of my Thrift Savings Plan, how much will be taken out? I owe $10,000 on a TSP loan and know I should pay it off. If I pay the loan before taking money and I roll into an IRA, will my money then be tied in the IRA and I can’t use it? Also, I heard you can combine military pay with federal retirement. How does that work? A. Mike: If you withdraw your entire TSP balance after you retire,…
Q. I am a civilian federal employee with 24+ years in FERS. Is there information as to whether or not there will be a reduction in force for the Defense Department in the next six to 12 months? I am considering retirement but would like to qualify for a buyout if it becomes available. What options are there for my Thrift Savings Plan at retirement? I’d like to roll over into more than one IRA, at separate financial institutions, if possible. How long does it take to process retirement paperwork? I also need to apply for Social Security benefits. A. Mike:…
Q. How will Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay affect my retirement benefits (annuity supplement, pension and Thrift Savings Plan withdrawals)? I am a Defense Department civilian, age 58, with 21 years of service under FERS. A. Mike: You will have access to your TSP account, under the usual rules, without penalty following your separation. Reg: Your annuity would be computed under the standard formula: .01 x your high-3 x your years and full months of service. There wouldn’t be any age penalty because you were retiring before age 62. And, since you have already reached your minimum retirement age,…
Q. I want to retire at age 58 and begin tapping my Thrift Savings Plan. I will have 15 years of federal service time. What can I do to avoid paying any penalty? A. Since you are retiring during or after the calendar year in which you reach age 55, your subsequent TSP withdrawals will not be subject to penalty.
Q. I have money in the G Fund. I am retired. Is there a chance I could lose my money in the G Fund if Congress needs the money in the G Fund? A. Not under the current law.
Q. I am the CSRS retiree who turned 70 years old in July. My email was posted Aug. 19. Boy, you have a way of really making a person feel small and stupid. I chose to start withdrawing my money so I wouldn’t have to be concerned about the 70½ deadline. These withdrawals were based on my life expectancy, and I knowingly started withdrawing my money a little ahead of time. I have not concluded that I am not receiving any gain from the G Fund with the Thrift Savings Plan. I wondered why I was taking such a significant…