Browsing: MRA – minimum retirement age

Q. I retired from the U.S. Postal Service at the end of 2018 with 31 ½ years of service. I met my minimum retirement age at 56, so I believe I wouldn’t be taxed a 10 percent penalty if I withdrew from my TSP before age 59 ½. I would like to withdrawal a partial lump from my TSP. Would I be taxed for that withdrawal? A. If you receive a TSP distribution before you reach age 59 ½, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10 percent of…

Q. I retired from the military in 2009 with 20 years of active service, then entered federal service in 2009-2012. I resigned for 1.5 years due to medical, then returned to federal service in 2014 to present. So, if I depart in 2020, I would have 10 years of federal service. What is my path to collect a pension for time served and how am I impacted by the minimum retirement age? I am born in 1966. If I want to depart federal service before my MRA, can I resign and defer annuity until 62 to forego penalty? If so,…

Q. I retired from my dual-status job on Dec. 31, 2018, at the age of 53 in Mississippi, which is below my minimum retirement age. Am I able to collect from my TSP plan without paying a penalty since I am under my MRA? What are the laws that govern this for my CPA to use at tax time? A. If you receive a TSP distribution before you reach age 59 ½, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10 percent of any taxable portion of the distribution not…

Q. I’m currently 31 and have 8 ½ years of government service. I’d like to retire as soon as possible, so what is the most practical course of action if you were in my shoes? Working to MRA of 57 (37 years of service), assuming the annuity is enough to support me in retirement, or waiting until 59 ½ to be able to collect the annuity and TSP payments? Or resigning at an earlier age?

Q. I’m a federal employee under FERS with a little bit of 11 years of service. I retired active-duty Army, receiving retirement active-duty annuity and disability pay from the Veterans Health Administration. I have no loans through TSP and will have a balance of about $95,000 when I intend to retire in June of this year at my minimum retirement age of 56. I intend to depend significantly upon TSP, $1,000 plus a month, until I reach the age of 62, when my Social Security will start paying out. What would be the consequences of beginning receiving monthly payments prior…

Q. I am a federal dual-status technician with the LA guard. I am 50 as of March 2018 and will have 28 years federal technician time on Sept. 22, 2018. Can I voluntarily retire and draw my FERS retirement, the supplement and my TSP  without being penalized the 10 percent? My actual minimum retirement age is 56 years and 8 months.

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