Browsing: Tax

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.

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. 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?

1 2 3 4 11