Q. I started a position with the federal government in May 2013. I bought two months of time from a summer job with the VA. To be vested in my TSP, will I have to work until May 2016 or will the two months come off the top? I will have only been contributing to TSP since May 2016.
Browsing: FERS
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. My wife and I are both retiring next month under the FERS system. Since we will not be making any more contributions to TSP and the market can be volatile, would it be wise to transfer all of our funds to the safer G fund?
Q. I have two years of service in the Department of Commerce and have been separated since 2012. When I left I did not vest in the automatic 1 percent agency contributions, and I had that amount forfeited. I have accepted a new federal position in the Department of Commerce and was wondering if I have to reset the clock on the three years required for vesting in the TSP? If the clock isn’t reset and I start back at the two-year mark, do the 1 percent agency contributions that I forfeited get returned to me? I never took a withdrawal of my contributions…
Q. Earlier in my career I was employed under the Civil Service Retirement System. When I left the government, I withdrew my retirement contributions. Several years later, I was rehired by the federal government and brought in under the Federal Employees Retirement System. Now I’m contemplating retirement and have the option to deposit my CSRS withdrawal in order to receive a CSRS annuity in addition to a FERS annuity. Can I directly repay CSRS with a portion of my TSP funds?
Q. This is in regards to my last paycheck and lump-sum payment for the 440 hours of annual leave that I will have by the end of the year: I am a FERS employee and plan to retire on Dec. 31, as it is listed as one of the best days to retire. With this retirement date, I will not receive my final paycheck and lump-sum payment for annual leave until sometime in 2016. Can I have $24,500 ($18,000 plus $6,500) of these final payments placed into my TSP for 2016 contributions since I will not be paid this money until 2016?
Q. I am eligible to retire next year at age 50 as a law enforcement officer under FERS. I plan on taking life expectancy payments from my TSP/401(k) as soon as I retire. If, upon retirement, I elect to transfer my TSP balance to a company like Vanguard, will I still be able to withdraw life expectancy payments from Vanguard and avoid the 10 percent early withdrawal penalty?
Q. I’m retiring this year. I am a GS-13 under FERS with 32 years of service. When I get an annuity for my TSP, if I die, will my wife continue getting the same monthly payments? A. Payments will be made to your surviving spouse only if you elect this option at the time you purchase the annuity. A 100 percent survivor benefit is an option — if you’re willing to pay for it. There is no provision for specifying the timing of the monthly payments at the time of purchase. Once the annuity is purchased, however, you will deal directly…
Q. I am under FERS with 19 years of service and I am eligible for retirement in 15 years. My wife also is under FERS and has 8 years of federal service with 15 years left. We are planning on starting a few home renovations in the next month and are unsure of the best option to cover the approximately $30,000 needed for these renovations. I was considering taking a loan out of her TSP for 5 years to cover the cost since the lower interest rate of 2 percent would make for a lower payment compared to another loan option.…
Q. Im 56-years-old with 31 years in the service (FERS). I’m not ready to retire but would like to make a one-time lump-sum withdrawal to use for a downpayment on a house. At my age , do I have to pay back the money, or is it going to be treated like an ordinary income and I would just pay a regular income tax?