Q. I understand that the thrift annuity payment is for life — does that mean until death? As a FERS retiree, will my Social Security annuity be reduced based on how much I have in my retirement fund (frozen CSRS) and/or thrift account? A. Is this a trick question? Yes, a life annuity means that payments continue, on a accrual basis, until the annuitant’s death, unless a survivor benefit option is elected at the time of purchase. In that case, the payments continue until the survivor dies, if later. Your Social Security benefit might be reduced by the Windfall Elimination…
Browsing: annuity
Q: I understand that the Thrift annuity payment is for life. Does that mean until death? As a FERS retiree, will my Social Security annuity be reduced based on how much I have in my retirement fund (frozen CSRS) and/or Thrift account? A: Is this a trick question? Yes, a life annuity means that payments continue, on an accrual basis, until the annuitant’s death, unless a survivor benefit option is elected at the time of purchase. In that case, the payments continue until the survivor dies, if later. Your Social Security benefit might be reduced by the Windfall Elimination Provision…
Q: I have heard that my friends are having more taken out for federal tax on their IRA or annuity accounts. Mine remain the same. Does that mean I’ll owe money next April? I thought the Bush tax cuts were extended. A: Withholding and the actual tax you wind up owing are two different things. I can’t tell you whether you’ll owe money in April, but the more you contribute during the year, the less likely you are to have to pay later.
Q: I was born in 1956, serve under FERS and completed 10 years of federal service this year. Can I resign from the service and draw reduced annuity at age 56? Also, am I eligible to draw 40 percent of my TSP contribution with the remaining amount in monthly annuity immediately after resignation? A: Under those circumstances, you will be permitted to take a partial withdrawal followed by monthly withdrawals or annuity payments.
Q: I plan to retire at 67 with 30 years of FERS postal service. My TSP has $262,000 now. It should be close to $300,000 when I retire. My wife is five years older than I am. We are both in very good health. I suggested buying a joint annuity with my daughter who would be 30 instead of her as the joint recipient because of her age. If I died first she would still receive $700/month from my daughter’s annuity and then the daughter would receive it after my wife died. Would this be a better bet than taking…
Q: I have $37,000 in my TSP L-Fund plus a $21,000 cash value on my life insurance policy. I plan to leave the USPS with 32 CSRS years of service soon when I turn 58. I have had a financial adviser suggest I put the combined money into an annuity-life insurance combination that he says will give me a better rate of return over a period of time. I have put the extra money into the TSP to use for extra expenses after retirement, (new roof, newer car, etc.) after I turn 59 1/2. I am afraid the annuity-life insurance…
Q: I will retire shortly from the U.S. Postal Service. My question is about withdrawing my money from my TSP account. My husband, who is already retired, and I went to see a financial adviser about retirement planning. I just turned 62 in December and my husband is 66. The financial adviser said we should take all my money out of my TSP account and hand it over to him. He would then invest it for us. Some would go into buying an immediate annuity which would give us an income of $1,000 for the next 10 years. Then he…
Q: Is there an option to take a 7-year annuity to empty your TSP? A: Not through the TSP, but you might find one on the retail annuity market.
Q. My mom received a pension that she had turned into an annuity through Metlife. She did it this way because she did not want to worry about being taxed or paying taxes. The problem is, she is having a difficult time communicating with Metlife. She has called and called, and they claim they sent out her paperwork when in fact they haven’t. What other routes can she take to expedite this because she is so fed up she wants to take all of her money out. Is there anybody we can contact besides Metlife? A She might try contacting…
Q: Once you begin taking the Thrift Savings Plan (TSP) via monthly payments, can one change and have an annuity purchased through MetLife? A: This is not currently an option for purchasing a MetLife annuity through the TSP.