Q. I separated from federal service in 2007 after 19 years in FERS. At the time of separation, I withdrew my Thrift Savings Plan contributions. I am considering returning to federal service. I was born in 1961. If I return to federal service, what will be my minimum retirement age? Are there special service requirements for reinstated federal employees? Am I required to return funds I withdrew from the TSP? If not required, is it still possible to return TSP funds that were withdrawn and deposited in another 401(k)? How will my FERS retirement annuity be calculated? Where can I…
Browsing: retirement
Q. I’ve retired and have placed 100 percent of my Thrift Savings Plan account in the L2030 fund. How will my account grow if I’m not able to purchase more shares? A. The value of each share you own will change (hopefully grow) over time.
Q. I am retiring under FERS in a few months, and am looking for recommendations on how to best invest my Thrift Savings Plan dollars. I believe my options are to buy a MetLife annuity, leave the funds in my TSP account until I turn 71 years old (I am now 60), or roll the TSP dollars into an IRA or other type of investment account. I have approximately $350,000 and will receive my FERS retirement and eventually Social Security. Do you have any recommendations to roll the dollars into an investment account that I could occasionally draw from and that could draw…
Q. I am 41 and a “gray area retiree from the Maryland Army National Guard. I am employed with the Postal Service (FERS) and have about 19 years of service (including five years active duty, which I already paid back). I also collect 30 percent disability from the Veterans Affairs Department. In planning my final retirement living, it seems if I retire at my minimum retirement age of 57, I should be immediately eligible for full annuities of the following, with no penalties or offsets: FERS basic annuity Social Security offset (until 62) TSP annuity (no IRS penalty) VA compensation…
Q. I am a 66-year-old CSRS retiree with approximately $200,000 in the F Fund. I have no debts, and will likely leave my Thrift Savings Plan untouched until I am forced to start withdrawing it. I am concerned that when interest rates start to rise, bonds will drop and the value of my TSP account may fall. I am considering moving my TSP into the G Fund. However, since I don’t plan on a withdrawal soon, should I put move it to one of the L funds? A. The G Fund is the only TSP fund that does not pose…
Q. I am a 50-year-old 6(c). I am eligible to retire on an immediate unreduced annuity this year and plan to do so. I plan to eventually access my Thrift Savings Plan funds, and I understand that I am able to do 72(t)-type withdrawals and avoid early withdrawal penalties. But I’m not interested in 72(t) systematic payments. I also know I could roll over the account to an IRA, but that is not my desired intention. Since I am retiring at age 50, what is the first date that I could begin to access my TSP via lump sum or monthly withdrawals without…
Q. A client of mine retired from federal government after 16 years and took her employee contributions out of the retirement plan upon retirement. She is working for the federal government again and wants to buy back in to the pension plan for the employer portion of the 16 years she previously worked. Does she have to use after-tax dollars, or can she do a rollover from an IRA or other retirement plan? A. She must use after-tax dollars for the buyback.
Q. I am under FERS. I want to purchase a Thrift Savings Plan annuity. After I retire, is it possible for me to add funds to my TSP savings to increase my monthly TSP annuity? A. The only way to add funds to your TSP account after you retire is to transfer money in from a qualified IRA or employer-sponsored retirement plan. This will have no effect on a TSP annuity that has already been purchased, however.
Q. I have selected a retirement date of June 28, 2014. I will be 59½ years old with 33½ years of government service. I have been FERS my whole career. I have $365,000 in my Thrift Savings Plan. I will retire with a high-3 at GS-13, Step 4 and a 16.51 percent locality pay. I am debating paying off my mortgage on my retirement home by taking a partial withdrawal from my TSP. The reasons for this are: 1) Escrow of property taxes 2) Flood insurance imposed by Dodd-Frank 3) Desire to be mortgage-free in retirement. I owe $185,000 on…
Q. I expect to retire at 65 and live at least to 90 (longevity runs in my family). The L Fund documentation recommends choosing a fund with a target date that closely matches your retirement date, while your advice column consistently recommends a date that corresponds to your life expectancy. The earlier date would obviously lessen portfolio investment risk. Assuming I will have enough money at retirement to survive for 25 years, is there another reason that you prefer the life expectancy date? A. I have always recommended that you use the lowest risk investment strategy that will safely fund your goals. Which…