Browsing: annuity

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.

Q. I have retired from the United States Postal Service because of disability. I want to do the one-time withdrawal of $60,000 and monthly annuities of $1,000 dollars. I have $318,000 in TSP. I am also a 100 percent disabled service-connected veteran. Will I be charged the 10 percent early withdrawal penalty from the IRS? My monthly annuities will last well into my 60s. Also, what is the special retirement supplement?

Q. I’m retirement eligible for the FERS annuity and FERS annuity supplement. How does exercising the one-time TSP withdrawal affect the annuity supplement, if at all? The basis of this question comes from my understanding that TSP withdrawals are considered Earned Income from a federal/state tax perspective, which would subject the FERS Supplement to the income test.

Q. I am under FERS and considering retiring in 2016 at age 66 with 32 years of service. I recently attended a retirement class through work, and they recommended rolling over my TSP ($400,000) into an Allianz Fixed Index Annuity with a guaranteed 6 percent growth and no downside. It has a .95 percent annual fee, so I’d lose almost $4,000 from Day One. Being a skeptic I feel there has to be even more of a downside, but there seems to be as many people online that favor as oppose. What is your opinion of these fixed annuities?

Q. If I buy an annuity with my TSP funds when I retire, will there be two separate annuities? One for my traditional TSP account, and one for my Roth TSP account? Or, will the Roth balance be merged into to one annuity tax free?

Q. I am a CSRS offset employee. I retired from federal service when I reached age 55 with 30 years service. When I reached age 62, my CSRS offset annuity was reduced by the Social Security retirement applicable, even though I was not drawing Social Security. I did not apply for Social Security until I was 65. Is there a way to recover the Social Security payments I lost from age 62 to 65?