Q. If I retire on Dec. 31, 2019, I will not be paid for annual leave I have saved until sometime the next year (2020). Does that money count against my 2020 Social Security earnings limit ($17,000), reducing my Social Security payments, or does it not count as earned income in 2020 (since I accrued it in previous years)? A. For purposes of the Social Security earned income offset, income counts in the year that it is earned, rather that the year in which it is paid.

Q. I work for the U.S. Postal Service and would like to resign at 58 with 24 years of service. I will postpone my annuity date till I am 60 years of age, but I need to tap into my Thrift Savings Plan to tide me over for the two years I am waiting for my pension. Will I face the 10 percent penalty since I am not 59 1/2? I am retiring, but delaying the pension to avoid the 5 percent per year under 62. Would I need to use the lifetime average or could I set the amount I want to…

Q. I plan on retiring September 2020 with over 41 years of service. What states don’t tax a U.S. Postal Service pension, if any, or what states tax the least? A. Take a look at Alabama, Alaska, Florida, Hawaii, Illinois, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming.

Q. I’m a FERS employee. As I reach retirement and knowing about my retirement and Social Security, what is the best way to maximize my TSP? If I have $1 million in my TSP, would moving the money from the C Fund to the G Fund and implement the 4 percent rule without wavering on my withdrawals would I run out of money? If the G Fund pays 1-2 percent every year I still seem to leave this Earth with money remaining. Looking at 4 percent calculation models, if you’re making an average above the 4 percent you wind up…

Q. I am 60. I retired from the Federal Aviation Administration (air traffic controller) at 56. At that time, I set up the “Substantially Equal Payments” under the 72 t. That arrangement ends this September (5 years). In 2015, Congress passed the “Defending Public Safety Employees’ Retirement Act.” Will this allow me to take a disbursement in addition to my ongoing “Substantially Equal Payments” without the additional 10 percent tax? My financial adviser believes that by taking other disbursements, even given the 72 t (10), will trigger the penalty because it would make the “Substantially Equal Payments” different. A. Generally,…

Q. I will be 72 in November and will continue working for the government for another two years. Can I change my TSP contributions to a Roth IRA now and be able to withdrawn the money from the account without penalty when I retire in June 2021? A. A penalty will be assessed against any Roth TSP earnings that are withdrawn before age 59 ½ or less than 5 years after Jan. 1 of the year in which you made your first Roth TSP contribution, whichever is later.

Q. I am a FERS employee age 47 with 27 years of service. I am currently on FMLA and will be resigning and applying for medical disability retirement. I know I can withdraw from my TSP but am not clear on the annuity option tax penalty. I want to withdraw funds to sustain me while waiting for a decision on my disability retirement. 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…

Q. Here’s a hypothetical: Say I separate from government service and withdraw all of my Thrift Savings Plan. Later I come back to government service. How would this situation be addressed? A. You will be starting fresh with a new TSP account.

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