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,…
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Q. I am a fully vested CSRS employee with the Environmental Protection Agency for 33 years at age 55. I have received my numbers, but I missed my first date to retire. How long does it take to receive my first full check? Should I take all of my Thrift Savings Plan out at once; leave about $10,000 in and roll it over to a Roth IRA; or leave it in the TSP? Is there a counselor at TSP to speak with about taxes and IRAs. A. You should leave your money in the TSP for as long as possible…
Q. I am a fully vested CSRS employee with the Environmental Protection Agency for 33 years at age 55. I have received my numbers, but I missed my first date to retire. How long does it take to receive my first full check? Worst-case scenario? Best-case scenario? And is there any way to speed up processing? When will I receive my annual leave payment? Will it be immediate in one lump sum without taxes since I already paid taxes on my leave? Should I take all of my Thrift Savings Plan out at once or leave about 10,000 in and…
Q. I am below the age for Thrift Savings Plan withdrawal without penalty (soon to be 50), but it looks like I will be out on workers’ compensation under permanent disability shortly. Due to the impact on my income and an ongoing issue, I need to make a withdrawal or close my TSP to continue meeting my obligations. I have thoroughly researched the issue of using a TSP but have little choice. A loan is not an option (I’m paying one off and, if I’m on disability, I can’t take one out). And I’ve looked into other avenues, to include…
Q. I have been vested in the Thrift Savings Plan for nearly 14 years and I am very concerned about a stock market collapse. I have moved everything to the G Fund. However, hyperinflation will consume the purchasing power of the dollar. Why doesn’t TSP have an investment alternative targeting precious metals, similar to various private sector investment companies? A. Because the Federal Reserve Thrift Investment Board, which makes those decisions, hasn’t included one. You should note that it is possible to produce an inflation-hedged portfolio by diversifying your account among the existing five TSP funds.
Q. My wife is asking for 93 percent of my total vested account balance. Does total vested account balance mean what was contributed by me over the past 12 years, or the total value of the account which includes Va contribution and growth? A. It includes everything in your account except for Agency Automatic Contributions, which have not yet met the vesting requirement: “A participant is vested in (entitled to keep) the Agency Automatic (1%) Contribution in his or her account after completing 3 years of Federal service (2 years for most FERS employees in Congressional and certain noncareer positions).”
Q. Regarding the Thrift Savings Plan and what can be deposited into my active TSP account: I was previously employed in a nonfederal job for which I had a 401(k) plan in which I was fully vested. After leaving the company’s employ, I rolled the 401(k) into an IRA. Now, I am thinking about taking the IRA and depositing it into my TSP. Is this allowed? Is there a maximum amount that can be rolled into the TSP? Where should I look to get the appropriate forms? A. You may transfer an unlimited amount of pretax money from a 401(k) or IRA…
Q. I live in Alabama. I’m 32 and have worked about six years in the federal system. I am vested, and just left to work with a contractor. I have $7,400 in my Thrift Savings Plan account and want to do a full withdrawal. If I do the withdrawal, do I get that number since I’m vested, or only what I’ve contributed? Also, when or if I withdraw it, I know I will have 20 percent withheld. Will it hurt my tax return next year? If so, how do I avoid that? A. You may withdraw your vested balance. That’s…
Q: Does a federal employee who is fired get to retain Federal Employees Retirement System defined benefit plan annuity and government contributions to his Thrift Savings Plan? A: You are always fully vested in your contributions and the government’s matching contributions. The automatic 1 percent agency contribution under FERS vests after you have completed three years of federal civilian service (two years for congressional and certain other noncareer positions).
Q: I am a Senior Executive Service employee with two years of active federal civilian service and 34 years of prior active military service. I have been discussing a possible opportunity wherein I would leave the federal government for a year or so and work as a contractor. I would then hope to compete for another SES position with a different agency and return to active federal civilian service. Because I have only two years of active federal civilian service, will I lose the agency matching contributions I have received in my Thrift Savings Plan account to date if I…