Q: I retired in 2006 at the mandatory age of 57 under the Civil Service Retirement System/Federal Employees Retirement System. I am able to live comfortably on my monthly annuity and have not made any withdrawals from my Thrift Savings Plan account, which remains in the L2030 fund and now totals approximately $250,000. I would like to start withdrawing from the account in the next year or two to add to my quality of life, and not for living expenses. Does it make more sense to take monthly withdrawals rather than buying an annuity since I am not overly concerned…
Browsing: annuity
Q. If I take a deferred retirement at age 60 (I’m 48 now with 23 years of FERS service), can I buy an immediate Thrift Savings Plan annuity through Met Life without a penalty? A. Yes, as long as it’s a life annuity.
This is my last Money Matters column for 2009, so I’ll take the opportunity to remind those of you who are still active federal employees to carefully plan your retirement savings contributions for the coming year. Unless there is a compelling reason to do otherwise, I strongly recommend you first direct your retirement savings contributions into your Thrift Savings Plan account — before you contribute to any other accounts. You should contribute the maximum allowed to your TSP account — which in 2010 is $16,500 if you are under age 50, or $22,000 if age 50 or older — before…
Q: Next year, I’ll retire with 12 years of federal service and I will be 67 years of age. Should I keep about 225,000 in the Thrift Savings Plan and start required withdrawals at 70½ or purchase an annuity? Do you see any other option, and what is a reasonable exposure to stocks in percentage (C, S and I) at my age, even after retirement? A: The question about whether to continue to manage your TSP account and take withdrawals for income, or use some or all of the money to buy an immediate annuity — through the TSP’s program…