Q. I am separating from the U.S. Postal Service at age 58. If I take monthly payments of $1,400, will I still be taxed?
Browsing: Tax
Q. I work for the Federal Bureau of Prisons and will be eligible to retire at 48 years old, with 25 years in federal law enforcement. I am familiar with the IRS additional 10 percent tax penalty for early withdrawals and some of the exceptions. I was curious to know if you could elaborate on the options that could possibly pertain to my situation?
Q. If I retire at 58 this year, and don’t touch my TSP until I’m 60, does the IRS still withhold 20 percent for taxes?
Q. I am a federal law enforcement officer with 25 years of service and I am 51 years young. Can you advise what are my current options and my future options (2017 TSP Modernization Act) to take withdrawals from my TSP account without penalty?
Q. I am a FERS employee with 33 years of service and will be eligible to retire at the end of the year when I turn 56. Upon retirement, I would like to keep my 401(k) money in my TSP account, but would like to take out approximately 4 percent per year in monthly payments. Would this be subject to the 10 percent IRS penalty for withdrawals before age 59 1/2?
Q. I plan to retire in September 2018 at the age of 58. Does it make sense to withdraw the max amount from TSP annually and remain in the 12 percent tax bracket or just take the minimum I need and pay more on taxes when I turn 70 and start drawing Social Security and required minimum distribution? If I choose option 1, I would probably invest the extra somewhere.
Q. The state of Hawaii does not tax social security and government pensions and annuities. If I purchase an annuity through TSP with my TSP balance when I retire and begin receiving lifetime income, is this considered a “government annuity” and therefore not subject to Hawaii state income tax?
Q. I have 29 1/2 years in with the U.S. Postal Service. In February 2011, it will be 30 years and I will be 55. Can I withdraw all my TSP contributions then or do I have to wait to be a certain age? Also, is it taxed then? Any early penalties?
Q. My RMD for 2016 was withdrawn March 2017 and my RMD for 2017 was withdrawn in April and December 2017. My 1099-R reports the total of the RMDs with no distinction for how much was for 2016 and for 2017. Am I supposed to use Form 8606 for the TSP RMD? Form 8606 asks for the value of the IRA on Dec. 31, but I have two values (one for 2016 and one for 2017). Also, if TSP is not an IRA, what is it? Is there another form to put this info?
Q. I live in the state of Massachusetts and am receiving survivor annuity benefits. I am having taxes taken out of my benefits each month. Are benefits for federal CRS deceased employees’ spouses suppose to subject to taxes or are benefits tax free?