Q. Could you tell me how a large loan against my TSP will be treated when I retire? I still owe $30,000 and am considering retiring soon. Am I penalized and taxed on those funds? If so, are there any ways around that?
Q. With the new tax law regulations making it not as beneficial to donate to charity due to not as many people itemizing their deductions, is it possible to directly move money from the TSP to a charity to avoid the tax and enhance the gift to the charity?
Q. I read your “Best Dates to Retire” in 2017. While I did not retire in 2017, I am planning to retire in 2018. Based on everything that you recommended for 2017 retirement planning, I am using this as my guidance for 2018 retirement planning. I am a FERS status employee. I will have 26 years of FTE service as of August 3, 2018. I have a base of 240 hours carryover annual leave and 1,500 hours of sick leave. I intend to accrue my max leaves for both AL and SL. I will use my accrued AL toward a…
Q. I am planning to separate from the U.S. Postal Service and would prefer a full withdrawal of my TSP balance. I have an outstanding loan that I cannot pay off and would prefer to just pay the taxes and any penalty. Do I have to wait the full 90 days for this loan to go into default, or can I request that an immediate taxable distribution be declared and have the loan closed? When the loan is closed, do I need to pay the taxes/penalties then or would I just declare them when I file my taxes at year…
Q. When I left the government for six years I pulled out my retirement under CSRS. I since have returned back to the government for the last 17 years. Since I was taxed on it when I pulled it out, can I report it on my taxes as paying back into my retirement?
Q. What does Social Security consider substantial earnings? It says if you have more than 30 years of substantial earnings, the windfall elimination doesn’t apply. I have 32 years of taxed Social Security earnings and 37 years of taxed Medicare earnings, but I am not sure what substantial is.
Q. I am CSRS Offset. I withdrew my retirement funds years ago, and need to make a redeposit. I want to move money from my individual 401(k) to the Office of Personnel Management to make the redeposit. Will OPM report it to the IRS as a rollover, or will it be taxed as if I never re-deposited it?
Q. Theoretical case: If a retiree has a $10,000 per year SRS benefit then works part-time earning $40,000 per year, can the retiree place all or most of post retirement earnings into employers tax-deferred account, therefore not impacting SRS earnings test? The desired result would be to not have any earnings or insignificant earnings, thereby retaining $10,000 per year SRS benefit while also generating $40,000 tax-deferred account. I think the IRS annual deferral limit is approximately $54,000. Thoughts?
Q. I retired as an air traffic controller in 2013 with 28 years of service at the age of 48. I am looking at my options for TSP withdrawal. I am now 52 years old. Am I still limited to the Life Expectancy method or have the new rules changed options for me?