Q. In your May 7, 2018, “Money Matters” blog you provided information concerning the rollover of CSRS Voluntary Contribution Program (VCP) funds into a Roth IRA. Can the contribution portion of such funds (non-interest, after tax portion) be rolled over into the Roth TSP? Form RI 38-124, referenced in your earlier column, suggests not, but the most current version of that form predates the creation of the Roth TSP. Such a rollover would be particularly attractive in light of the ability to designate TSP withdrawals as traditional, Roth or a proportional amount of each, with the new withdrawal flexibilities coming to…
Q. My husband is a CSRS retiree. His Social Security benefit was reduced due to his receiving a pension. I am at full retirement age and plan to apply for Social Security based on his earnings since I do not have my quarters met. Will my Social Security be based on his benefit before the reduction or will mine be based on his reduced amount? A. This is a question for a Social Security rep, but it is my understanding that your spousal benefit will be calculated based on your husband’s windfall elimination provision-reduced benefit amount.
Q. I currently work for the U.S. Postal Service and have 38 years of service. I’ll be 66 years old in December 2019 and can collect my Social Security benefits in full while still working at the Post Office. Will they still reduce my benefits (government offset) even though I’m not retired or collecting my CSRS pension? A. The Social Security earned income offset will not apply to your Social Security retirement benefit once you reach your Social Security Full Retirement Age. The windfall elimination provision is calculated based on your earnings history and will be applied whether, or not,…
Q. I retired under the CSRS at age 55 and understand I can withdraw my TSP funds without penalty. If I roll my TSP into an IRA, will I still be able to withdraw prior to age 59 1/2 without penalties?
Q. I am a retired U.S. Postal Service employee under the CSRS system. Upon retiring I took out a partial lump sum withdraw from my account. My retirement adviser informed me at the time that there was “talk” of allowing more than one lump sum withdraw from one’s Thrift Savings Plan account. Any updates or truth to these rumors? Incidentally, I am not yet receiving my annuity from my TSP account, just that initial lump sum payment upon retiring.
Q. My husband was a federal employee from October 1962 thru January 1996 and Medicare premiums were deducted from his salary from 1983/4 until his retirement. He retired under CSRS. I know that he is not eligible for Social Security, but is he eligible for Medicare Part A?
Q. I am a federal employee under CSRS, eligible to retire with max benefits in 2024 (41 years and 11 months) at the age of 60. My TSP distribution is 50 percent L 2020, 15 percent C fund, 15 percent S and 15 percent I funds. At the close of 2018 my balance was $340,295, which reflects a loss of $47,753. Should I move everything to the L Fund?
Q. I began federal civil service 10/22/1983 and retired from the U.S. Department of Agriculture 5/13/2013 on an “early out” offer. For my nearly 30 years of service, I never left CSRS, paid Social Security, and qualified fully for CSRS Benefits at my retirement. I did, however, participate in the employee-only [no match from my agency] paid deduction that was an “option” for CSRS to build a THRIFT Saving Program that currently has an approximate current value of $235,000. I retired early and have been receiving monthly retirement benefits since 5/13/2013 [and thus a substantially reduced monthly benefit, but at my…
Q. I am employed by the federal government under the CSRS system, with 44 years of service. My ex-husband recently died in December 2017 and I am getting his Social Security benefits of $1,365 per month. If I retired at the end of December 2018 would I still continue to get his SSI benefits at that same amount or would they be drastically cut, or I may not even get any? My ex-husband never worked for the federal government; he was only a veteran. I only have 24 credits worked toward my SSI benefits.
Q. I currently am a GS employee and have a TSP residential loan; however, I may be transferring to an Overseas NAF job. Does anyone know if I can continue to pay on my TSP loan or do I have to pay it back to avoid penalties? I know NAF is federal but unsure about the TSP aspects.