Q. I currently have federal Blue Cross Blue Shield basic coverage. I am 65 years old and have Medicare Part A. When I retire and keep my FBCBS coverage, do I have to enroll in Medicare Part B ?
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 am 69 years old and will be 70 in November. I haven’t received notice that I have to withdraw money — or how much for that matter — from my TSP. I am still working as a military civilian, and I don’t plan to retire anytime soon, as my TSP only has $54,000 — not enough to retire on. When I receive notice after my 70th birthday, will it be before the end of 2016 when I turn 70? Should I plan to begin the withdrawals before the end of 2016? And with my Social Security, I am now in the 25…
Q: I have a question about the limited withdrawal options in the TSP. I’m 58 and retired with an early-out from the Postal Service. I took out a few thousand to get my retirement started and I’m leaving the balance in until I reach 62 1/2. My main reason for this is the low fees of the TSP. The snag is that I’d like to make further withdrawals for certain investments, side businesses, etc. Not a lot, of course, as I would never stupidly blow through my retirement, but the TSP has their second withdrawal as an ‘all or nothing’ option…
Q. I’ve been a permanent federal employee since 2010, and I saw a position a few months back which seemed promising, but it’s an NTE. Aside from the fact it is a fixed term of employment, how would this impact my benefits — specifically contributions to my TSP? That would be one of the deciding factors in accepting the position.
Q. I have read several of the Money Matters articles regarding the fact that the SEP IRA can be transferred into the TSP. However, when I looked at the TSP 60 Form, Section II, Block 13, it lists a Traditional IRA, SIMPLE IRA and Eligible Employer Plan as choices for transfer to the TSP. If a person has an SEP IRA to transfer to the TSP, would they select the SIMPLE IRA or Eligible Employer Plan for this situation? Would the person need to explain to the TSP in an attachment that it is an SEP IRA transfer?
Q. I retired April 30, 2016, under FERS law enforcement and was considering taking a one-time, partial withdrawal to pay off our mortgage and complete some home improvements. The withdrawal would be substantial — in the $400,000 range. Is there any advantage or disadvantage in withdrawing the money now or is it better to wait until the following year? My wife and I are uncertain if we would be taxed beyond our current rate and if the withdrawal is viewed by the IRS as “income” for purposes of filing at the end of 2016.
Q. Thank you for sharing the article on TSPs. Regarding the $50,000 loan before leaving service, will it still become a taxable distribution, as I’ll be retiring as a federal LEO with the new tax-free provision?
Q. I will be 70 1/2 on Dec. 11, and due to state income tax regulations I will be taking my 2016 and 2017 TSP withdrawals in 2017. It appears that I cannot take a yearly distribution but must take monthly payments. How will that work for 2017 when I will be taking a distribution for two years at two separate times? Is there anyone I can visit in person to help in filling out the forms?
Q. I’m a FERS employee planning to leave my Thrift Saving Plan in place after I retire and draw an allotment for my remaining years. I’ve done some research, but I’m still unsure what happens to my TSP balance (in the event there is one) when I die. Assuming I have correctly designated beneficiaries, do they have access to the remaining balance in a lump sum? Are the rules different for a surviving spouse for whom I have designated no survivor benefit than they would be for say, an adult offspring or other designated beneficiary? Finally, this is pre-tax…
Q. I retired as a federal law enforcement officer with 26 years of service at age 48 in 2015. Then the law was passed to allow those who retire the year they turn 50 or after to make penalty-free withdrawals. I’ve read about the IRS rule of 72(t) option and to me it seems as if — as long as I wait until I turn age 50 and invoke the rule of 72(t) — I should be able to make additional withdrawals without incurring the penalty. Is there an exception for those FLEOs who are allowed to retire with 25 years…