Browsing: annual leave

Q. I recently donated annual leave for a fellow postal worker who has been injured.  Is the value of this donation tax deductible? A. This is really a question for your tax preparer or a CPA, but I doubt that it would be deductible since it has not yet been taxed as income.

Q. If I have more than 240 hours of annual leave when I retire, will I be allowed to cash that amount in also, or will I have to take the leave before retirement? If I retire at the end of a calendar year, will I be able to cash in my annual so that it is taxed the following calendar year?  Does this also apply to TSP? A. You may delay your TSP withdrawals for as long as you like, subject to the Required Minimum Distribution rules that apply beginning at age 70½.

Q: If I retire at the end of 2010 and receive my lump sum annual leave payment in 2011; will I be able to put money into an IRA or the Thrift Saving Plan in 2011, even though I did not actually work that year? In other words, would the lump-sum payment in 2011 be considered earned income? A: No. The payment is considered deferred compensation and is not a basis for contribution to an IRA or the TSP.

Q: What happens with Federal Employees Retirement System unused sick leave and annual leave at retirement? I will have 2,080 hours at retirement and would like to cash that time in toward my Thrift Savings Plan. A: Based on the current regulations, the potential candidate for this maneuver would be unused annual leave, which must be taken in cash at retirement. Nothing definitive has happened on this yet, but it is under consideration.