Q. I am in FERS and I am planning to pay in full my CSRS redeposit service balance for my 17 years of prior CSRS service. I want to pay via direct transfer of a check sent on my behalf from the Thrift Savings Plan to the Office of Personnel Management. TSP tells me it is permissible, and all I need OPM to do is to fill out TSP Form 75 and have OPM check that it is an eligible retirement plan and include the address where to mail the check. This would be a trustee-to-trustee direct transfer. Three different…
Browsing: CSRS
Q. Effective Feb. 29, 2012, I am a CSRS retiree from federal service; I participated in both the Thrift Savings Program ($201,000), and the Voluntary Contributions Program. I must make an election soon of the funds now in the VCP: $87,637 (nontaxable); $34,682 (taxable). I am married, and I will be 66 years old in October. I (we) do not foresee needing the money from these two sources in the near term. I will likely convert everything to a traditional IRA then Roth IRA in April of the year after I turn 70½, to be left to my son after I…
Q. I want to withdraw some money from my Thrift Savings Plan. I need transportation, home repairs and needs for my child. I have a husband who is unreliable, not responsible and does not work, and our marriage is on the rocks. Is there any way I can withdraw money from my TSP without his consent? A. The rules depend upon your employment status, retirement system and the amount and type of withdrawal you take. If you are still an active federal employee, spouse’s rights affect your in-service withdrawal. If you are a married FERS participant or a member of the uniformed…
Q. My wife and I pulled our retirement in about 1994 or later and invested. The market didn’t help it grow, given the lost decade and other downturns in the economy. I had previously converted mine to a Roth (bad idea). Now I’m 63 and hoping to retire in three to five years unless something worse happens in the next two fiscal years. My wife is nine years younger. We deposited our retirement pulled from other employers into the Thrift Savings Plan, which in both cases is probably larger than if we had kept our federal retirement where it was.…
Q. I am planning on retiring at age 56½. I am a CSRS employee. If I take my Thrift Savings Plan balance and roll it over to an IRA, can I start withdrawing it immediately, or do I have to wait until I am 59½ years old? A. The rules are different for IRAs than they are for the TSP. Under the scenario you propose, you will be exempt from the early withdrawal penalty for distributions taken from your TSP account because you retired during or after the year in which you will reach age 55. There is no similar…
Q. I am 64 years old and retiring from the federal government with over 33 years of service. I am CSRS Offset. I applied for Social Security to begin in September. I do not need my Thrift Savings Plan money now. Should I leave it where it is, or roll over to an IRA? I have all of my money in the L 2020 fund. If I leave it where it is, should I move the money into another fund(s)? A. You should leave your money in the TSP for as long as possible. There is no better retirement investment environment. How…
Q. I recently read your article, “Prepare now for possible hike in pension contribution.” 1. Can you respond with your thoughts regarding how proposed pension hikes would or would not affect federal employees with less than five years of service as of Jan. 1, 2013) who are subject to the 2.3 percentage-point increase signed into law by President Obama this winter? 2. How would the possible hike in pension contribution affect a CSRS employee who has over 41 years and 11 months of service? A. 1. With about half the increase I modeled for my article, I’d expect about the…
Q. When the Philadelphia Naval Shipyard closed in 1995, I withdrew all $29,000 of my CSRS money. I had 16 years of service time at the shipyard. After years of working in the private sector, I have now worked six years (two temporary, four permanent) for the government under FERS. I was told I would have to pay back $61,000 or I would owe $35 a month when I retired (to keep my health insurance.) I do not have $61,000. I have $31,000 in my Thrift Savings Plan account. I am 64 years old and my body is worn out…
Q. I’m a Postal Service worker with 33 years of service under CSRS. Can I make contributions to Thrift Savings Plan that exceed the $17,000 maximum and $5,500 catch-up contributions? A. No. You may transfer money into TSP from an eligible IRA without limit, however.
Q. I may be in the wrong retirement system (CSRS). If I am, are there any companies that can guide me to decide between CSRS offset and FERS under the Federal Erroneous Retirement Coverage Corrections Act? A. Yes. I have capabilities and experience in this area (I provided decision support in one of the largest FERCCA cases on record) and will be happy to discuss your situation with you. You may contact me directly through www.variplan.com.