Q. I’m retired, and for 2017, I increased the amount I’m taking out in monthly TSP withdrawals. I received a letter today from TSP acknowledging my payment had increased, the correct amount and the number of months these payments are expected to last. The letter went on to say if my payments are expected to last less than 120 months, they’re considered eligible rollover distributions, not periodic payment for tax purposes. I really don’t know what this means, but somehow I suspect it means I’ll pay more in taxes. Can you shed light on this?
Q. I’m 52 years old with 31 years of U.S. Postal Service time. I am contemplating leaving my federal job early. I know my minimum retirement age is 56. I would like to keep my health insurance and life insurance for my family. What are my options at this point? Deferred or postponed? Will I be able to still receive my Social Security supplement at 56? What about the money in my TSP and FERS accounts?
Q. If I elect a set monthly withdrawal instead of an annuity, what happens if I should pass away before I have taken all of my TSP? Do I have to take the annuity option for my spouse to receive any survivor benefit or the remaining balance?
Q. My wife and I are both 36-year-old federal employees. We both contribute the max contribution to our TSP accounts — $18,000. Additionally, we each invest $5,500 in separate Roth IRA life cycle mutual funds through USAA. Combined, we have about $600,000 in our TSP accounts and about $100,000 in our IRA accounts. We live a rather frugal life, and started investing later in life due to grad school, so we are looking for ideas on additional avenues of investment when all other tax advantaged investment vehicles are maxed out. Do you have any advice for our situation?
Q. I am retiring in 15 months with 34 years of service at age 56. I am downsizing my house for a lower house note. I have enough in my TSP to purchase a home. Is this a good idea? The note on the house would be equal to what I would receive from my TSP. I will still have my FERS supplement and my FERS.
Q. I am a CSRS retiree from the Department of the Army. My Social Security benefits are set at $40 a month and will not get any higher. My husband retired with New York state benefits. I am told I cannot receive half of his Social Security benefits if he passes away. Is that still true? If so, why?
Q. My wife is under CSRS Offset. She retired at age 61 and had her CSRS Offset benefit reduced last February when she turned 62; she turns 63 this month (January 2017). She has not applied for Social Security benefits. She is currently working at a job that is covered by Social Security. Her annual salary is $45,000. We don’t need the Social Security component of the CSRS Offset right now, approximately $800 per month. Is it to her advantage to apply for Social Security benefits now or should she wait until she turns 65? If she applies now, won’t her…
Q. I inherited part of a TSP account and got a check, with tax already withheld. Do I still have to pay state tax as well? I’m from Pennsylvania, and the TSP account is from my uncle who lived in Florida.