By Mike Miles
February 27th, 2012 | Uncategorized
Q: I plan on retiring at 62 from the Federal Employees Retirement System. Will I be penalized for withdrawing money from my Thrift Savings Plan account at that age?
July 6th, 2011 | Uncategorized
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).
July 5th, 2011 | Uncategorized
December 29th, 2010 | Uncategorized
Q: I am under the Federal Employees Retirement System and have money in the Thrift Savings Plan. I returned to government service after 16 years in the private sector (I was under the Civil Service Retirement System from 1975 to 1987 but was placed in FERS in 2004 when I returned). I have retirement accounts outside TSP, but I find TSP to be easy to manage. I have considered transferring my other 401(k) accounts into TSP, but I have also heard concerns that Congress may target TSP as a source of “revenue.” I will be considering retirement in the next seven to 10 years and would like to manage my funds from one place. Are you aware of any negatives I should consider?
A: The rumor you’ve heard also applies to private-sector retirement plans and individual retirement accounts. I don’t think that it’s worth worrying about at this point. The TSP is the best place to save for retirement, and I encourage you to transfer you outside balances into it whenever possible.
December 20th, 2010 | Uncategorized
Q: I’m a Federal Employees Retirement System employee and I am confused about what advantages there are to the payroll tax deduction reducing the contribution into Social Security from 6.2 percent to 4.2 percent in 2011 as part of a payroll tax holiday. Won’t I still need to pay 6.2 percent at the end of the year when I’m filing my taxes? And will it not also affect my Social Security?
A: No, you won’t have to pay the difference at the end of the year. Right now, Social Security benefits are not indexed to the rate at which you pay into the system, so under the current rules it will not affect your benefits. What happens in the future is anyone’s guess.
October 20th, 2010 | Uncategorized
Q: Will I get full Social Security and a “full” Federal Employees Retirement System annuity when I retire at age 66? And when I invest my Thrift Savings Plan money, will that affect how much I receive from Social Security?
A: I can’t say whether you’ll get a “full” FERS annuity, but none of these benefits, on their own, will affect the others.