Q. I am retiring July 29, 2017. I am covered under the FERS retirement system. I am 65 years old with 34-plus years of federal service. I plan on drawing regular payments from my TSP as part as my retirement. Will my wife still receive these payments should I die? She is 10 years younger than I am.
Browsing: FERS withdrawal
Q. I’m a few years out from retirement but want to plan carefully for that day. A lot is written about earning money from outside sources (e.g., non-federal employment or self-employment) and how it affects Social Security benefits. What I want to know is if I retired today under the $15,480-allowed outside-income criteria, would my FERS annuity and any TSP income (either annuity or withdrawal) be included in that $15,480-income ceiling, or are they treated separately thereby allowing me to receive my full Social Security benefit, FERS annuity, TSP income and outside income together without reductions?
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.
Correction: The answer in this post contained the age 50½. It has been corrected to 59½. Q. I am a civil service employee under FERS. I recently retired from the Air Force Reserve. Is there any benefit or detriment to combining my two TSP accounts? None of my military account has contributions from combat pay.
Q: I plan to retire at age 73 under FERS when I will have a very small nest egg upwards of $100,000 in TSP. I would like to leave that in the TSP in the long term. I understand that I have to take a withdrawal upon retirement; otherwise there is a penalty. I have been informed that I can take a withdrawal of $25 per month and still leave my money in TSP to accumulate there. Is this correct? I plan to save money from Social Security in the interim and may want to (if permitted) put that savings from…
Q. I am a recent FERS retiree with 32 years of credited government service and retired at the minimum retirement age of 56 (I was born in 1959). I thought that I can withdraw my TSP at the MRA without incurring early withdrawal penalties. However, in reviewing my 2015 1099-R from TSP, box 7 indicates a (2), which I understand is an early distribution. Is this information correct?
Q. I have retired under FERS from the U.S. Postal Service. I was single when I retired; now I am married. When I decide to withdraw monthly payments from my TSP account, will my wife have to sign anything?