Q. If a employer held taxes out before depositing money into an employee IRA account at retirement, does the employee have to pay taxes on that money again at of withdraw?
Browsing: retirement
Q. For the past five years I have been making the maximum contributions ($18,500 plus $5,500 catch up). I am planning to retire on Sept. 30 this year. Can I make an equivalent contribution to TSP out of my final pay to make up the difference to achieve the maximum contribution for the full year? I have been making $713 regular and $240 monthly to date. If I can do this, I will plan to make contributions of $4,262 and $1,440 from my final pay check to meet the maximum limit for the year. Is this allowed?
Q. I will be retiring within the next month. I am single, 62, and can easily live off my pension and Social Security. I’d like to leave my TSP amount intact and only withdraw lump amounts (based on TSP changes coming in 2019) for home improvements or a nice long vacation. I do not need a monthly withdrawal. I currently am 50 percent in the C Fund and 50 percent in L2030. I choose L2030 because my family history of medical issues has shortened most family members’ lifetimes. I do not anticipate a long life, but do want to completely enjoy…
Q. I plan to leave civil service next year after 17 years of service and to defer applying for retirement until age 62. Can I start monthly withdraws from my TSP account immediately after I leave federal service or do I have to wait until my actual retirement date at age 62?
Q. I plan to retire on December 31, 2018, with 33-plus years of service. I am 58 years old and will be eligible to receive the Social Security supplement until age 62. If I draw down a portion of my TSP upon my retirement as lump sum, will that be considered regular income for me for the year and will offset my supplement? Say I draw down $50,000 or more as a lump sum, will I lose my supplement for that year (2019)?
Q. My husband has money in a retirement account that is not in the TSP. When we retire would we be able to just draw down his accounts and leave my TSP account alone? While his account is good, the TSP is, as you know, a great vehicle to save / invest money. His retirement accounts and mine our about the same: $450,000 in each. We are planning on retiring at 60 and delay collecting Social Security till 70 years of age. My husband is 58 and I am 57. While I know how to save, I’m not sure how…
Q. I’m a 71-year-old DAC who will be retiring in June 2019. Presently, I have $1,045,000 in the TSP. When I retire, I will have the following other sources of annual income: military retirement ~$37,000 annual (w/SBP option); Social Security ~$29,000; FERS annuity $29,000 (s/100% option, which is half); and my TSP (wife is beneficiary). My wife is 55 years old retired DAC with an annual annuity of ~$14,000. She also have $450,000 in her TSP account. She will be receiving at age 56 a Social Security supplement of ~$9,000 until the age of 62. With the differences in my wife…
Q. I retired some time ago and have a question about life insurance. I am closing in on 65 and the Office of Personnel Management said my life insurance would go up quite a bit by 65. Do I keep any of it (I have Basic, Option A and B)? I am starting to check out term life and comparing, but I am not sure how much of an increase my life insurance will go up. Life insurance companies I have talked to say the U.S. Postal Service rates are way bigger than what I would pay with them, this…
Q. I am a member of FERS, and I am trying to gain a better understanding of my options for avoiding the 10 percent IRS penalty for early withdrawal. I am wondering what the impact would be if I resign from the federal workforce in my 40s to take a job in the private sector for a period of time (say until I am 55). Upon retirement from my private-sector job, assuming that I am able-bodied with no medical issues or high medical bills, is there any way that I can begin taking monthly payments from my TSP funds without…
Q. Hello, I will be 58 years old on November 9, 2018, and am a recent FBI retiree as of December 2017. I retired after 30 years and 4 months of FBI service. Briefly, I was told by our FBI TSP office recently that a new TSP withdrawal rule is now in effect. If any federal government employee retired after age 55 (I retired at age 57), they can now begin withdrawals from their TSP accounts without worrying about next year’s 10 percent IRS tax penalty. I need final verification regarding this matter. Thanks.