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…
Browsing: Social Security
Q. I am 59 years old and will have 38 years civil service (FERS) in October. I hope to work until age 62. We went to a financial adviser when my husband retired two years ago, and he invested his 403 in an insurance fund and another fund recommended by this adviser. It has earned around 5 percent. The adviser now wants me to withdraw most of my Thrift Savings Plan at 59½ and invest with him. I know 5 percent is pretty good, but it will be locked in for several years. He also recommended I purchase whole life instead of…
Q. I’m 57 years old, started with the Postal Service in June 1987, bought back five years and nine months of military time. What would be the difference in benefits between retiring if a VERA is offered and retiring before a VERA is offered? Would I be penalized on my Thrift Savings Plan? Can I get the Social Security supplement? Would I be able to collect Social Security supplement either way? Mike Miles: Since you’d be retiring during or after the calendar year in which you reached age 55, you would have access to your TSP account without incurring the…
Q. I plan on retiring in 2014 but would like to leave my Thrift Savings Plan alone unless I need it or until I turn 59 (which would be 2015). I’m looking at around $180,000 to draw from. I think I would like to start with a small amount, say $500 a month, to see how that works until my Social Security kicks in at 66. Is there any problem adjusting the monthly amount I would want? A. You may adjust your monthly payment amount once each year, in January.
Q. Do lump-sum Thrift Savings Plan withdrawals (either partial or full) that are made after retiring from FERS or CSRS count as wages for the Social Security earnings test? I found lots and lots of stuff saying TSP does not count as wages, but then also found something on the Social Security website that reads, “a Federal thrift Savings fund is treated as a trust in section 401(a) of the IRC. Therefore, employer contributions to your TSP are not wages, however your elective contributions to the fund are wages.” A. What you’ve read is saying that your TSP payroll deferrals…
Q. Can I take the 40 percent loss I take on my Social Security, because of windfall elimination, as a retirement investment loss on my federal income tax? A. No.
Q. I am a Civil Service Retirement System employee, hired in 1979 and contemplating retiring April 3, 2013. 1. I will be subject to the windfall elimination provision because I earned 40 credits of Social Security eligibility prior to my federal employment. But my spouse is also eligible for Social Security and started receiving Social Security benefits of more than $1,900 a month (gross) starting last month (January 2012), whereas the Social Security Administration has estimated that my Social Security benefits would be approximately $385 a month (gross). Would I be eligible for spousal Social Security benefits? 2. A financial planner…
Q. I have 26 years of Defense Department service with a target of six years to go before retiring. The Federal Employees Retirement System isn’t doing very well with the Thrift Savings Plan Offset. Because of a failing market, I have missed my TSP target by a large sum. Does the government have any plans to assist the FERS employees looking to retire with a failed TSP? Most FERS employees are having to work past their target because they can’t afford to retire. The Civil Service Retirement System is much better. Combining FERS, TSP and Social Security, we still fall short compared…
Q. I will be retiring from the the Postal Service with 31 years of FERS at the age of 56. I know I will be eligible for the Social Security supplement until I reach the age of 62. My question is about earning limits with the supplement. If at age 56, I withdraw all or a portion of my TSP account, will this affect my Social Security supplement from the Postal Service? A. TSP withdrawals are not counted as earned income.
Q. I am under the Federal Employees Retirement System. I am 49 with 21 years of service. I am being told there will be a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay offered this fall and next spring. I will turn 50 during the VERA/VSIP timeline. If I take the VERA, will my government annuity be reduced by 5 percent per year? Will I be able to receive both my government annuity and my Thrift Savings Plan annuity as soon as I leave service? Is there a penalty in taking the TSP annuity now? Will I qualify to get the Social…