Q. I turned 65 last October and was under the impression that I had to sign up for Medicare. I am a retired Federal Aviation Administration employee with Blue Cross Blue Shield health insurance. I have three prescriptions and a regular, semi-annual medical exam. With BCBS I pay $25 co-pay for each office visit. My co-pay for my quarterly prescriptions with only BCBS is around $22. I am paying $365 every quarter for medicare and it eliminates my semi-annual co-pay for physical exams and reduces my quarterly prescription co-pay to $5 — so roughly $200 in routine medical expenses with BCBS and…
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 plan to retire Dec. 31, 2017, and sell back any accumulated annual leave. For tax purposes, will the lump-sum payout be considered CY17 or CY18 income?
The Department of Labor recently enacted a rule requiring that “advisers” — meaning investment and insurance sales people — who offer “advice” to participants about their retirement accounts act as fiduciaries and accept the responsibility and liability that goes along with that role. In simple terms, this means that anyone who tells you to do something — anything — with your Thrift Savings Plan money, is obligated to put your interests ahead of all others. This poses a rather unpleasant problem for the “financial services” industry, which has built a massive profit generating machine upon a foundation that includes, as…
Q. I am a FERS employee and will be 61 in July 2016. Will I still lose 5 percent a year for every year I am under 62? I currently have 25 years and 4 months of service.
Q. I have approximately $125,000 in contributions plus about $50,000 in earnings in my VCP account. I need about $110,000 from my account. Can I borrow in the form of a loan from my account, or do I have to withdraw? I would still like to keep the account open and would intend to replenish at a later date.
Q. I retired in 2014 with an annuity and fixed monthly payments, which began in mid-2014. I will be 70 in March 2017. If I do nothing, will the TSP automatically make a withdrawal and send me a check (or electronic deposit) made up of the difference between my annual withdrawal and the RMD? The difference should be about $1,000 for the year.
Q. Allocation of TSP funds differ from person to person, but what would you suggest to a young person in their career to invest money within the TSP fund?
Q. My husband is 69 and turns 70 in February 2017. He took a job with the VA at the end of his career and became eligible for and invested in the TSP. He has a small amount in the TSP account, but most of his money is in Vanguard funds. My husband is now fully retired. Is there an advantage to rolling over his IRAs into the TSP?
Q. As a CSRS employee, while still working, does the GPO penalty still apply if I collect a Social Security spousal benefit?
Q. My 55-year-old husband made a TSP withdrawal in November (paid all penalties, etc.). Now he wants to make another withdrawal. Can he make more than one withdrawal within a 12-month period?