Browsing: 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.

Q. I am a retired CSRS employee, and my wife is a retired FERS employee. I am currently 63 and my wife is 61. We are both covered under my FEHB insurance as part of my annuity. I keep reading about whether or not I should pick up Medicare Part B, but there does not seem to be a clear-cut answer. It seems to depend upon your health, current out-of-pocket expenses for medicine, office visits, etc., compared to the annual cost of Part B. I have seen several articles point out the 10 percent penalty for delaying enrollment. My question is, if…

Q. I have read that the VCP based on my age of 64 could pay as much as 8.8 percent in an annuity. Is that true? Can one elect a survivor benefit? And if so, at what cost/reduction? Who is the company behind the product?

Q: I retired under the FERS program. I took the 10 percent reduction in my pension so that my wife would have survivor’s benefits. I heard that if my wife dies according to the list below, my 90 percent reduction would change accordingly. Is this true?

Q. I am a CSRS employee, and I plan on retiring in 2016. I currently have 37 years of service. If I elect to contribute money (up to 10 percent of my lifetime earnings) to the Voluntary Contribution Program, I understand one option is to receive an annuity that will pay a yearly amount of approximately 9 percent of my contribution amount. I will be 65 in December of 2016.