Q. I have 21 years of federal service including four years of military time. The redeposit is about $6,500. I will be eligible for Social Security at 62, and the reduction to my annuity will be about $250 a month. In your opinion, would it be advisable to take this money from my Thrift Savings Plan account to pay the redeposit? The break-even point is about 2½ years. What factors should I take into account?
A. The answer depends upon what retirement system you’re under, whether or not you have dependents who will be relying on a survivor annuity, your tax situation and how you’ll manage the money if you leave it in the TSP. If you’re covered by FERS, single, not subject to the highest tax bracket, have no dependents, and I will be providing you with investment decision support for the rest of your life, then you’re probably better off leaving the money in the TSP.