Browsing: early retirement

Q. I owe $24,000 to my Thrift Savings Plan from a loan I made. If I take the early retirement, how much will I owe in taxes to the government? I live in Florida. A. The amount you’ll owe on the unpaid loan balance can only be determined by completing your tax return for the year. If you’re not prepared to make the estimates by running a pro-forma return, then you should consult a tax adviser who is.

Q. I have worked for the Postal Service for 24 years as postmaster. I would be able to take an early-out offer. I want to borrow on my Thrift Savings Plan for a residential loan. If I do a 10-year loan from my part of the TSP next month and then they offer early retirement and I take it, will I still have to continue making the payments? Also, when I retire, will I be able to pull out all my savings in TSP? A. If you retire, your outstanding TSP loan will become due. If you don’t repay it…

Q. I am 54 years old with 33 years of federal service, 27 in the Postal Service and six as a military buyback. If the USPS offers voluntary early retirement, Iwould take it; but I have an outstanding loan with my TSP and not enough cash or credit for a loan to pay it off. How would this work? May I use my TSP to pay it back, and would I be able to withdraw funds from TSP, even with the 10 percent tax penalty? How does TSP figure what has been paid in and what is interest accrued, and…

Q: I’m considering retiring at the end of this year if VERA’s are offered again in my agency. I will be 54. I have two questions related to TSP withdrawls: 1. If I choose to take dollar-specified (vs. lifetime expectancy) monthly distributions from my TSP, it’s my understanding that I’ll be penalized 10 percent since I’m under 55 when I separate and since there’s not a waiver for the dollar-specified monthly payments option. Is that correct? Or is there some way to structure dollar-specified monthly distributions so as to be included in the “substantially equal payments” waiver? Would starting out…

Q. I am considering taking an early retirement offer. If I were to have another financial institution purchase an annuity that is offering a better interest rate than what MetLife is offering through the Thrift Savings Plan and do so directly so that it would not be deposited to a personal checking or savings account, would it be exempt from tax penalties because I am under 59½, even though it would be taxed as regular income through the payments from the annuity provider as it would if TSP purchased the annuity for me? A. Yes. You may roll TSP money…

Q: I am 62 with 22 years of federal service. Recently, my agency offered a buyout. I was thinking about taking the buyout and retiring.  Here is my reason for not doing so.   I have been reading horror stories regarding OPM’s incompetency regarding our annuity checks. Some people have been waiting as long as a year.  They cannot get any response from OPM. Since the third leg of my retirement TSP has lost so much money, I would have to drain it in order to survive. Should I stay or go? I also will have surgery in early 2012 and…

Q. With talk of the Postal Service downsizing I was wondering:  I am 48 years old, have 25 years at the Postal Service and four years active military.  I realize at 25 years I can retire, regardless of age.  But can I access any of my TSP without penalty or must I wait until my MRA of 56?  How about the Special Retirement Supplement? Mike Miles: A.  If you retire before the calendar year in which you’ll reach age 55, your TSP withdrawals will be subject to the early withdrawal penalty until you reach age 59 1/2, unless you can…

Q. If I take voluntary early retirement and I am 55 can I start my TSP monthly payments at that time without a 20 percent penalty. Or do I have to wait until I am 59 1/2 to start receiving from my savings in the TSP? A. You may withdraw money without penalty.