Q. I am 50 years old and plan to resign in within two years. I will more than 10 years of service, but my minimum retirement age is 56. Sometime after I turn 56, I plan to submit for a deferred retirement, even though I know I will take a penalty of 5 percent each year under age 62. The Thrift Savings Plan states that “if you are age 55 or older in the year you separate or retire, the 10 percent early withdrawal penalty tax does not apply.” Does this apply to deferred retirements, as well? A. There is no…
Browsing: resignation
Q. If I resign after 14 years of civil service and do not wish to cash out my Thrift Savings Plan, can I roll it over into a private-sector employer’s 401(k) without penalties? A. Yes.
Q. I am a FERS employee with 14 years service, age 53. Tired of the pay freeze and “no money for promotions” line. Also tired of doing the jobs of higher paid co-workers while they call in sick two to three days a week. If I resign, can I take my FERS and Thrift Savings Plan in one lump sum and walk away? I am also a military retiree and have my pension and Tricare health care plans from that, so that is not a concern. Understanding the tax hit, will I just receive what I contributed, or the fed matching,…
Q. If I resign at age 51 with 25 years of service, will I lose the government matching funds that went into my Thrift Savings Plan? Will I be able to receive a deferred annuity at age 62? What would that be — 25 percent of high-3? A. Mike: Agency matching contributions are not subject to a vesting requirement and are not forfeited at termination. Reg: Because you have at least 20 years of service, you could apply for a deferred annuity at age 60. Since each year of service would be worth 1 percent, with 25 years, your annuity…
Q. I am 46 with 22 years of service, and have been told that I will soon receive a letter of directed reassignment to a job in my same grade far outside my commuting area. When the letter arrives, if I should decline to move to the new position, what are my options for drawing retirement? How about insurance? Severance pay? What about my 401(k) in the Thrift Savings Plan? My performance ratings are not an issue. A. Mike: Your circumstances will not affect the usual rules that apply to your TSP account. As long as you remain employed, you will be…
Q. I am 57 years old with 25 years of Veterans Affairs Department service. I plan to leave federal service in April 2013. I would like to resign and postpone my FERS annuity until I reach 60 years old. I would like to start withdrawing from my Thrift Savings Plan soon after resignation. Is this possible to start withdrawals after separation, or must one be in a retired federal service status before starting TSP withdrawals? A. You may start withdrawals after your separation from service.
Q. I have resigned from my position with the federal government in order to attend graduate school effective in May and will have been employed for a year and 10 months. I realize I need to be employed for three years for TSP vesting requirements, and I will likely forfeit my automatic 1 percent agency contribution in May, but after grad school, I intend to return to work for the federal government. How does this work with vesting in this situation? Would I be returned the 1 percent agency contribution (plus interest?) upon working an additional year and two months…