Paying a redeposit


Q. I resigned from the federal government in 1989 and withdrew my retirement funds ( about $12,000 worth). I was reemployed in 2005 and am in CSRS Offset. I plan to retire in 2022. According the FHR Navigator benefit system, the redeposit I would owe as of Sept. 2, 2022, is $35,512 (withdraw amount plus accrued interest). Can I pay the amount of redeposit I owe (today, presumably less than $35,512) from a rolled over IRA with Vanguard?

A. You must pay the redeposit with after-tax funds. IRA funds used to make the payment will be considered to have been withdrawn from the IRA.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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