Browsing: FERS

Outstanding loan

0

Q. I am looking at retiring in the FERS LEO category next year. I have a $30,000 outstanding TSP loan, which we will not be able to pay back. I understand I will incur a 10 percent IRS penalty and the $30,000 will be looked at as a taxable disbursement. Am I still eligible to obtain life expectancy withdrawals when I retire? A. Yes.

Facing the truth about FERS

0

Historical investment returns seem to be the focus of most investors’ attention. What rate of return did the C Fund produce over the past month? The past year? The past five or 10 years? Visit any investment product website, and this is pretty much all you find. Historical data sliced, diced and cooked up in just about every way imaginable. And, the Thrift Savings Plan’s website is no exception. It is filled with an impressive assortment of historical performance data for the various investment funds it offers. Unfortunately, and most critically, there is nothing about the prospective — or expected…

Loan down payment

0

Q. I am a FERS employee eligible for a TSP residential loan of $23,000. If I request this amount for a primary-residence home purchase, would my down payment and closing cost need to be at or above this amount of $23,000 on my signed purchase contract? Not sure if I will put down 5 percent (13K) or 10 percent (26K). If I put 5 percent on purchase contract, will TSP decline the request for the full $23, 000 loan? I don’t want to write 10 percent on purchase contract if I am not going to put quite that much down,…

Retirement options

0

Q. I am 62 and a FERS employee. Can I retire with my FERS annuity and TSP and wait until my full retirement age of 66? I do not plan to work  after I leave. A. Yes.

TSP annuity taxation

0

Q. I retired 2+ years ago under FERS with a substantial TSP account that I have not touched. I am looking at purchasing an annuity through TSP versus regular payments based on life expectancy (essentially the IRS required minimum withdrawals that I must start next year). I understand how the RMD is taxed. How will the annuity be taxed? Is there a source that explains the calculation?

Social Security reduction

0

Q. I’ve read about the Social Security reduction if your income is above a certain amount. Does the calculation for that amount include the FERS pension and TSP annuity payments? In other words, does the Social Security Administration consider my pension and TSP payout to be “income” they will reduce against? Or is the reduction only against “wages” from actual employment income after you reach Social Security retirement age?

Loans at retirement

0

Q. I plan on retiring in August with 31 years FERS service at MRA. I have an outstanding loan of $15,000. I know they will report it as income earned. Will I have to pay a penalty since I will only be 56 on the balance I owe?

TSP withdrawal

0

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Q. I am an Air Reserve Technician and 53 years old. I have lost my military requirement at no fault of my own, and now I am being made to retire from the civilian side (FERS). I have a total of 20 years. Can I withdraw all of my TSP from the civilian TSP and if so, what is the early withdrawal penalty and taxes associated with…

1 2