Q: My husband is 60 years old and plans to leave his federal agency by Dec. 31. Is it possible to do a partial withdrawal (in-service) based on his age, then roll the balance of his Thrift Savings Plan account into an individual retirement account when he leaves his job? A: Yes, as long as he hasn’t taken a partial withdrawal in the past.

Q.  I am 67 years old and have 10 years in the government now and want to work another 10 years before I retire.  I began working in 1966 for the government for 15 years and resigned, taking the retirement money.  I would need to pay $23,000 at this point to refund that money.  Is it worth it or should I remain CSRS Offset?  I could possibly pay back the money with my savings in one year or I could put the money in a savings account or pay more on my mortgage. A.  Let me clear up a few…

Q. When we retire under federal law Enforcement and receive the Social Security Supplement under FERS, are Social Security and Medicare taxes withheld on our FERS annuity and supplement checks? A. No, they are not.

Q. I am a federal firefighter under CSRS Special Retirement due to retire in November 2011 at age 50.  At what age will I be able to collect on my TSP retirement? A. You may tap your TSP account as soon as you are retired, but you will be subject to the early withdrawal penalty until you reach age 59 1/2 unless you roll over the withdrawal, use the withdrawal to buy a life annuity, take a series of Substantially Equal Periodic Payments under IRS section 72t, or meet one of the other specific exceptions to the rule.

One of the most important objectives of financial planning is to identify and eliminate sources of unacceptable financial risk. Some unacceptable risks can be avoided — the risk of dying in a skydiving accident can be avoided by avoiding skydiving — but others must be insured against. For most people, the biggest financial risk is health care risk. Both the odds of needing health care and its cost are high. Whether it’s through the Federal Employees Health Benefits Program, Medicare or private health insurance, make sure that you have health insurance at all times. The next biggest risk in most…

Q. I am a widow, CSRS, retired.  I will have approximately $55,000 (before taxes) when I am 70 1/2 (January 2017).  My birthday is July 1946.  I am a widow; file single; do not want an annuity.  I know my circumstances and the law could change a lot before then. Would they take 20 percent or 30 percent before giving it to me?  Any suggestions? A. Under the current rules, if you take a required minimum distribution as a single, partial withdrawal, it will be subject to 10 percent tax withholding unless you elect to have a larger amount withheld. If…

Q. I am considering paying off my mortgage before I retire, but at the expense of my TSP catch-up.  I know every case is different, but are there general rules of thumb for this scenario. If you need some specifics: seven years to retire and I save $51,000 in interest payments (6.125 percent annual rate). A. There are no rules of thumb that I would trust for this decision. You’ll have to grind out the math for the alternatives, including some predictions about the future, to decide. I will say that without further knowledge of your circumstances, I would tend…

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