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. […]
