Benefits Paid By Government for You Reported on Your Leave and Earnings Statement
“I was looking at my LES I noticed the FERS Retirement on deductions section is a different “year to date” amount from the FERS Retirement under “Benefits Paid by Government For you” section on the LES. Why is that? and Which one do i actually go by?” – James Understanding Your Leave & Earning Statement […]
FERS Supplement and Social Security Income Earnings
“I am retiring on 12/31 at the age of 56 – will my FERS Supplement calculation include 2019 earnings – after they get reported to Social Security. I know the Supplement is based on estimated SS at 62 – and would make a difference given the inclusion of 2019 earnings. But this will take time […]
The Best TSP Allocation
TSP Contribution. My spouse recently changed her TSP contribution because her friend told her to. She currently has: L2030 80%, C-Fund 10% and S-Fund 10%. She will retire in 4-yrs. Would you agree that it would be in her best interest to go: G-Fund 70%, C-Fund 20%, and S-Fund 10%. I’m a novice with the […]
Using your TSP to Buy or Pay off a Home
“I will retire in 2021 at 59 1/2 with 31 years of service. My pension will be over $4,000 a month and I have no bills but, I currently rent in DC. I have almost $500,000 in my TSP right now and I would like to move to FL or SC. Would it be a […]
FERS Retirement Supplement Under Voluntary Early Retirement Authority (VERA)
“Dear Micah, Thank you for this series. I can retire in October 2019 with 30 years under FERS. I will be 56 years and 10 months old and did not think that I would be eligible for the SRS until age 57. I filed for my retirement the first part of April and when […]
MRA+10 FERS Retirement
“Does “MRA plus 10” apply to my situation?, and if so, what would be my monthly Pension amount be if I put in for my Retirement now at my current age of 60?I was one of the “ORIGINAL” FERS Employees, starting on February 6, 1984.I worked until April 17, 2001, with a High-3 of […]
Your TSP and Market Volatility
We have been receiving questions from Federal Employees across the United States this week, wondering if they should make changes in their TSP due to the recent market volatility. The markets have been impacted recently by Federal Employees should not sell everything and move to the G Fund in their TSP but instead, follow their […]
TSP Survivor Benefits
“My strategy is to leave my TSP untouched and “will” it to my spouse” – Mike As Financial Advisors who work with Federal Employees, we are often trying to help Feds address two really, really important underlying questions that they have about their retirement: Question 1: “Do I have enough money to retire?” and, Question […]
Creditable Service
“I early retired to come home to care for my sick parents. At the time of my retirement in 2017, I found out that CPOC was penalizing me 5 years, because I opted out of the NAF Retirement Plan. At the time, I had all my money going into the TSP, and was never […]
FERS Pension, Be Prepared
“Can I be on the safe side to estimate my retirement deductions for FEHB, and Life Insurance by using the amount that is being deducted now?” – Paul Preparing for Retirement A few years before you are ready to retire under the Federal Employee Retirement System (FERS) a lot of time is spent preparing. When […]
Using TSP to Pay Off Debt
“I have a tsp question for you concerning the new TSP withdraw options. I retired in 2015 from air traffic control at age 50. Will I be able to make a withdrawal? I would like to withdraw maybe $20000 to help pay some debt. If I can do that what is the tax rate and […]
FERS Postponed Retirement – Potential Costly Mistakes
Help Avoid Losing Out On Your FERS Benefits “I recently separated as an attorney from a federal agency at age 61 and ten months. Because I did not have the time to devote towards researching the retirement rules, I hired a consultant, who was formerly employed by my agency’s Division of Human Resources. The consultant […]
Recommended TSP Allocations
“Thank you for the great videos, they are very informative. I do have a question for you. I am 59 years old and a retired postal worker, I would like to keep my money in the TSP, and would like to average 6% growth per year. What percentages do you recommend I put in each […]
FERS Deferred Retirement: How to find out if you have CSRS or FERS Benefits
“Hi, I am approaching retirement age am starting to gather data. I worked for the VAMC from 1982-1996. I think I have both FERS and CSRS pension benefits- but moved my Thrift Savings to Vanguard. How can I find out exactly what I am eligible for? And how can I file to start collecting? Thank […]
FERS and Social Security Widow(ers) Benefits
“Hello. Thank you for providing such informative information. I am a widow benefit; at age 60 if I retire and can later switch to my higher SS benefit, am I still eligible for the Special Supplement? Even gov’t planners at my office don’t seem to know this answer. HELP! Thanks again. With kind regards,” – […]
FERS Survivor Benefits: What’s your Advice for Widows/Widowers?
“Just wondering if you ever give advice to widows/widowers. I believe we are in a unique situation that I seldom find addressed anywhere.” – Valerie FERS Survivor Benefits: When You Lose a Spouse Who Was a Federal Employee In this article, we want to address FERS Survivor Benefits and what you as a Widow/Widower should […]
Can I continue my FEHB once I apply for Medicare?
“I am 66 and currently a full time federal employee. I have a two children under the age of 26. I would like to continue to provide them coverage under my BCBS federal health insurance until they become 26. If I retire and apply for Medicare Parts A and B, can I continue with my […]
Using TSP Funds vs Social Security
“Your TSP is an asset that can be given to future generations and your social security income is not. As the condition of social security worsens, why is it not a good idea to conserve your willable assets and start drawing social security income at age 62?” – Jeff Jeff, this is a great question […]
Do Roth Contributions affect my Traditional TSP?
“If I choose to contribute to the ROTH Component of the TSP, how much can I contribute? Will ROTH TSP Contributions effect my Traditional TSP contributions?” C. We have witnessed an overwhelming response from people inquiring about how they can effectively use their Thrift Savings Plan (TSP) to help them plan for their financial futures. […]
VERA: VISP Working as a “Contractor”
Question “I retired from Federal Service under a VERA / VISP in 2017 with over 32 years of Federal Service and my MRA is 56 and approaching very soon. I returned to the workforce in March of 2018 as a contractor and am still working. Do I need to stop working before my birthday or […]
FFFC Is my TSP taxed as ordinary income or capital gain?
Question “Is the money that I withdrawal from my TSP in retirement all taxed as ordinary income or are the contributions that I made taxed as ordinary income and the earnings that I made taxed as capital gains? – Marvin Qualified Retirement Account Your Thrift Savings Plan (TSP) is a qualified retirement plan. That means […]
“Should I Sign Up for Medicare Part B?”
“I plan to retire in the next few months from USPS and take my health insurance with me. I am debating signing up for Medicare Part B and have Medicare Part A now. When I do retire, my understanding is that I can just take my Blue Cross Blue Shield into retirement and pay those […]
“Where do I go to obtain the precise rules about ROTH IRA’s as they pertain to me? I am 55 and working as a Federal Employee and already contribute to the TSP ROTH and a ROTH IRA. I would like to know how the rules change at 59 1/2 with contributions.” – Kim
We have had a tremendous amount of questions from Federal Employees about participating in ROTHs, whether it be in the TSP or the private sector using a ROTH IRA. Tax planning is a critical component of your financial plan so we want to make sure that we are getting the fundamentals correct. Let’s start by […]
“Can you have a Roth TSP and a Roth IRA?”
The Thrift Savings Plan (TSP) was created under the Federal Employee’s Retirement System Act of 1986 for federal employees and members of the uniformed services. This is an Employer-sponsored retirement account that allows participants, Federal Employees, to participate in a low-cost investment and receive an employer match on some of their contributions. Federal Employees enrolled […]
Are HSA’s Use or Lose?
HSA Plan Basics Health Savings Plans (HSA) are a powerful savings tool that could work in conjunction with your health plan if you participate in a High Deductible Health Care Plan. The IRS defines a high deductible health plan as any plan with a deductible of at least $1,350 for an individual or $2,700 for […]
FFFC – “When Should I Sign Up for Medicare?”
We receive a lot of questions from Federal Employees about when they should enroll in Medicare. Medicare is a nationally run health insurance program for residents living in the United States. The program was first enacted in 1966 as part of the Social Security Administration offices services. However, today the Centers for Medicare and Medicaid […]
FFFC – “Is my HR retirement estimate always correct?”
“Always” Generally, an estimate from your Human Resources (HR) Department on your Federal Employee Retirement System (FERS) benefits is a good source of information for you to begin to plan your retirement. However, it is your responsibility to ensure that the estimate that you receive from your HR is accurate. Your HR will not know […]
“I will likely have 5 years of federal service soon. Assuming an average 3 years of $185k, would I be able to take a pension after 5 years and what would be the estimated amount of the pension? Is the pension subject to income taxes if I am 59 when I retire?” – Nick
Nick poses a great question worth exploring a little more in depth. The question asks about how several variables in the Federal Retirement System work together. Nick lets us know that he has at least 5 years of creditable services. During his 5 years of creditable services, his average high three salaries were $185,000.00. When […]
Is there a 10% penalty for signing up for $1,250 monthly straight withdrawal (not an annuity) from the TSP if I retire at my MRA @ 56 (but will not be 59 1/2)
“Is there a 10% penalty for signing up for $1,250 monthly straight withdrawal (not an annuity) from the TSP if I retire at my MRA @ 56 (but will not be 59 1/2)” – Paul. The Thrift Savings Plan (TSP ) is an important component in your retirement planning. When it comes to making contributions […]
“I have been using the regular TSP, and I am now 5+ years away from retirement. Should I change my allocations to contribute to the ROTH TSP?”
Traditional vs Roth TSP Understanding the difference between contributions to the Traditional vs Roth TSP is critical to long term financial planning. Before we dive into answering whether or not it makes financial sense to change your contributions from the Traditional TSP to the ROTH TSP, let’s start by understanding the difference between the two. […]
“As a Federal Employee, how much money can I put into my ROTH?”
Without a doubt since its inception in 1997, the ROTH retirement account has gained tremendous popularity. Named after the Delaware Senator, William Roth, under the established Taxpayer Relief Act of 1997, the term “ROTH” today generally means how a particular investment is treated for Federal Income Tax purposes. When you invest in a traditional […]
“When Is It Too Late to Make Large TSP Contributions?”
One of the great questions that we get from people over age 50 is whether or not it is too late to really take advantage of investing in the Thrift Savings Plan (TSP). Sometimes they are within 5, 10, or even 15 years from retirement. The reason that this is such a good question is […]
“How can I convert some of my TSP dollars into my ROTH?”
One of the questions that Federal Employees frequently ask us is how they can convert some of their Thrift Savings Plan (TSP) dollars into the ROTH component of the TSP. As a Federal Employee or member of the armed services, there are so many advantages to actively participating in the TSP. Amongst them is that […]
“How Do I Apply For the FERS Supplement?”
One of the most frequent questions that we receive from FERS Employees is how do they apply for the FERS Supplement. If you searched online for hours, going deep into the 3rd or even 4th pages of Google and other search engines, and have not been able to find out how do not worry. […]