FERS lump sum annual leave payout at retirement


Q. I was recently talking with an investment group in preparation for retirement from the federal government in April 2020. I should have about 300 hours of annual leave accrued prior to retirement, consisting of my 240 hours allowable carryover plus what I earn prior to a retirement date of 04/30/2020. I was told that instead of taking a lump sum payment, I could direct the entire amount (minus federal tax) to my TSP account? Is this true, and how would I go about directing the lump sum payout to the TSP account?

A. This is not an option.


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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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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