Q. When one retires under FERS, is it the last three years’ annual salary or the last three highest salaries that determine the benefits?
Browsing: FERS
Q. My husband and I are both FERS with law enforcement coverage. He is 52 years old but will be retiring soon because of terminal illness. He has a total of 31 years of federal time. I am 45 years old and just completed my 25th year of federal LEO coverage. I have no plans of retiring anytime soon. My husband will most likely dip into his TSP upon retirement. He has made me his beneficiary of his TSP. Whatever money is left in his TSP after he passes, how does that affect my beneficiary status? Does his TSP remain…
Q. I am a FERS employee planning to retire at age 60 in October 2017. I may use a one-time withdrawal option to withdraw some of the money (roughly 20 percent of the total ) from TSP to pay off some debt in 2017 before retiring and keep the remaining money as a pensionlike cushion (for years 2018 and 2019) until I reach age 62 and am eligible for Supplemental Security Income. Withdrawing and keeping the funds as cash in 2017 will add to my income and take me into a higher tax bracket . What options do I have to keep…
Q. I am 58 year old and have 30 years in FERS. I am planning to retire soon. If I withdraw money from TSP on a monthly basis, do I pay FICA or Medicare tax?
Q. I am 46 years old. My minimum retirement age is 57. I am covered under FERS. At what age can I start my FERS annuity without penalty? If I retire at age 55 with 33 years of service, can I access my TSP without penalty? If yes, how?
Q. I want to pay off $70,000 in student loans. I have enough money to either use home equity or a post-service TSP partial withdrawal. I am a 54 year old with 100 percent total and permanent disabled veteran/FERS annuitant. Is one option better than the other?
Q. If I retire at age 56 in January 2017 with 20 years’ federal law enforcement service with the Federal Bureau of Prisons, will there be a cap on the amount of money I can earn in 2017 and each year after while drawing the FERS supplement along with my pension? Also, if I draw out a one-time lump sum from my TSP to build a small cabin, is that considered earned income and will it cause me to lose my FERS supplement? What will be the tax rate for the TSP lump sum withdrawal at age 56? Will I…
Q. Are TSP withdrawals considered to be earned income for the purposes of means-testing Social Security or FERS supplemental benefits?
Q. I had withdrew money from my TSP in 2013 and incurred a tax bill. I was told that you now can take a lump sum without penalties. Can you elaborate on this? Also, what can I do, if anything, if I have paid the taxes and penalties? I was FERS for my entire time with the government.
Q. I am 46 years old with 12 years of federal service under my belt. I am in the FERS system. I plan on working another 19-20 years. I currently contribute 7 percent to TSP, split up between the life-cycle funds 2030 and 2040. I would like to be able to contribute 15 percent, but at this time it is not possible. Would I be better off stopping the TSP and contributing to Roth — or a combination of both?