Q: I retired from Federal Service under FERS at the end of May of this year with 24 years of service. I also turned 70 in early May of this year. My plan had been to purchase a lifetime annuity through TSP (METLIFE) in August of this year as annuity interest rates had typically been higher in August for the past few years (2006, 2007, 2008 and 2009). Unfortunately the rates have steadily decreased since my retirement and are now down to 2.750 percent, which is equal to the low of March 2009. Obviously this was not a good time…
Browsing: annuity
Q: Will I get full Social Security and a full Federal Employees Retirement System annuity when I retire at 66? And when I invest my Thrift Savings Plan, will that affect how much I receive from Social Security? A: I can’t say whether you’ll get a “full” FERS annuity, but none of these benefits, on their own, will affect the others.
Q: Is it possible to set up monthly payments from your Thrift Savings Plan account and then later have the TSP use part of your funds to purchase an annuity while continuing those payments? Or must both withdrawals be set up at the same time? A: It is not possible to take a partial withdrawal for a TSP annuity while continuing monthly payments.
Q: Will I get full Social Security and a “full” Federal Employees Retirement System annuity when I retire at age 66? And when I invest my Thrift Savings Plan money, will that affect how much I receive from Social Security? A: I can’t say whether you’ll get a “full” FERS annuity, but none of these benefits, on their own, will affect the others.
Q: I am 57 years old and I have 34 years of service, including 21 years of active duty in the Navy. I have already paid my military deposit amount in full. My Thrift Savings Plan account has $200,000 in it. If I retire next year, can I get half of that amount in lump sum, and can I invest the remaining $100,000 in an annuity? If I can, when would I start receiving the annuity? A: Yes, you may request a partial lump-sum withdrawal, if you have not already done so, and then later request a full withdrawal…
Q. I understand that when I turn 59 1/2, I can begin withdrawing my TSP contributions without a tax penalty. May I continue working for the federal government after age 59 1/2 while augmenting my take-home pay with something like a TSP life annuity? Right now it’s looking like I’ll never be able to retire and am looking for ways to bring more money home to live on. An extra $1,000 per month or so from a TSP life annuity in addition to my regular federal salary would really help to make ends meet. A. Yes
Q: Can a TSP annuity be purchased at any age upon separation from service? A: Yes.
Q: I plan to retire sometime around age 55 with 28-plus years of federal law enforcement service. I am aware I can make a one-time partial Thrift Savings Plan withdrawal. My question is: Upon retirement, can I request that TSP purchase a Met Life annuity for me with 75 percent of my TSP account and leave the rest untouched and, hopefully, growing until I decide to make monthly withdrawals or turn 70 1/2? The partial withdrawal form does not seem to provide this option, and neither does the full withdrawal form. A: Unfortunately, if you use part of your account…
Q: I retired from the U.S. Postal Service on Oct. 31 and received a $10,000 incentive payment in December that was counted as part of my 2009 earned income. As part of the incentive package, I will receive another $5,000 this October. This has nothing to do with my retirement annuity, so will it again be counted as earned income for 2010? If so, I will be able to contribute it to my Roth IRA, correct? A: This is really a question for your tax preparer, but I expect that income to be reported for tax year 2010.
Q: I am five years away from retiring. My husband retired at age 48 in 2000 with $300,000 in his 401(k). He went to a financial planner and set up an annuity. The way it was written, he couldn’t change the dollar amount he was allotted. Needless to say, his money ran out this year. I have 30 percent of my income invested in the Thrift Savings Plan, all in the G Fund, hopefully not making the same mistake with the stock market. Should I go to a financial planner to have a monthly annuity made up? I don’t want…