Browsing: annuity

Q. I am a federal employee who plans to retire with 30 years of service when I hit the 30-year mark in the year when I am 54 years old. Something that I have read that you talked about was that if I retire in the year when I am 55, then I can fully withdraw my TSP funds. I don’t become eligible to receive a retirement until I hit 56 years and two months. Will my early or deferred retirement allow or not allow me to take advantage of the “no tax penalty” rule that allows for full withdrawals when…

Q. I plan to retire with 30 years (plus five days) under my belt on Oct. 31, 2017. I will be 58 years old. Will I get my full annuity and special retirement annuity? Will anything be reduced? Also, if I take out a chunk of TSP (say, ½) and leave the rest to be paid out monthly, will I be penalized?

Q. When I turn 70½ and have to withdraw the money in my TSP, can I take half and put it in a Roth account and then what is left the next year have them pay me in an annuity?

Q. What are tax and/or RMD consequences to a federal employee under FERS who is currently 70 1/2 years old and who does not plan to retire for 2-5 years, but is considering transferring a significant portion (three-quarters) of their TSP to a private insurance-company annuity? The annuity does qualify as an IRA. The federal employee does not plan to access the funds until retirement. Can the employee continue to work for federal government without taking an RMD or paying any taxes on the transfer?

Q. I turn 56 in February 2016. I plan to resign from the government, and, then, request and draw my retirement with federal health benefits when I reach my minimum retirement age at age 60. I was reading your post regarding FERS formula and saw this: You would only receive a refund of your retirement contributions if you resigned from the government and asked for one. If you did, you’d cancel all future entitlement to an annuity. I am “NOT” going to request a refund of my retirement contributions, but I am going to resign from the federal government. Will my resignation cancel all…

Q. I just heard a presentation on a Nationwide indexed annuity and was impressed by the historical returns, insurance company, no annual loss guaranty and right of survivorship. How might I decide if an indexed annuity is the right choice for some of my TSP funds? How might I fund an external annuity with TSP funds? I’m a 63-year-old enrolled in FERS with nearly 30 years of federal service, and I am looking forward to retiring in the next couple of years.