FERs Retirees, anyone?

[Maricar19]

I Left mine in TSP and I'm taking monthly payments based on life expectancy (72t amortization rules). I am free from that at age 59.5 and can go to monthly payments of any amount..

Hi Clester, If I withdraw based on life expectancy, do I have to do it for at least 5 years or can I discontinue once I am 59.5? I am 57 yo.

 

[Cactus]

You can buy back your academy years! Buying Federal Civil Service Retirement Years for Academy Time Even If You Are Drawing an Active Duty Military Retirement : FedSmith.com

 

[Maricar19]

I retired April 30, 2016. As of today, June 1, 2016, I haven't received my terminal leave, and my pension and supplemental income check.
Hopefully, my terminal leave will come in on June 3.

 

[kave]

Having completed a cursory scan of this thread I didn't see a post with this question. and first let me say my post may need to be directed elsewhere so go ahead mod if necessary, "make ya move".

Question: Does anyone here know if a lump sum withdrawal of TSP dollars will be taxed as ordinary income or capital gains? For reference, I'm retiring Dec 31, 2016. My plan is to pull an amount out of my TSP to pay off the small mortgage remaining. I plan to call my tax advisor later this year but thought I'd ask here also.

Thanks in advance!
Kave

 

[Skorcher]

Assuming you are retired and your TSP is not a ROTH the withdrawal is ordinary and taxable income. If you're not retired and younger than 59.5 yrs then you will also have a 10% early withdrawal penalty.

Having completed a cursory scan of this thread I didn't see a post with this question. and first let me say my post may need to be directed elsewhere so go ahead mod if necessary, "make ya move".

Question: Does anyone here know if a lump sum withdrawal of TSP dollars will be taxed as ordinary income or capital gains? For reference, I'm retiring Dec 31, 2016. My plan is to pull an amount out of my TSP to pay off the small mortgage remaining. I plan to call my tax advisor later this year but thought I'd ask here also.

Thanks in advance!
Kave

 

[kave]

Assuming you are retired and your TSP is not a ROTH the withdrawal is ordinary and taxable income. If you're not retired and younger than 59.5 yrs then you will also have a 10% early withdrawal penalty.

Skorcher thanks a bunch! You gave me the information I was searching for. My TSP is not a ROTH. I will be 56 years old at retirement with 31 years plus 6 months of service.

 

[Scout333]

I retired April 30, 2016. As of today, June 1, 2016, I haven't received my terminal leave, and my pension and supplemental income check.
Hopefully, my terminal leave will come in on June 3.

Hang in there Mari it will come in due time! If I remember mine took about three months before everything was settled and my regular checks came in! Hopefully you have a little tucked away for the meantime! Good luck to you!

 

[RazorCat]

Assuming you are retired and your TSP is not a ROTH the withdrawal is ordinary and taxable income. If you're not retired and younger than 59.5 yrs then you will also have a 10% early withdrawal penalty.

Unless you're rolling into another IRA, or you're federal a LEO. When I retired I rolled part of my TSP into an IRA, and took a small lump some payment outright. I only paid income tax.

 

[Maricar19]

I retired April 30, 2016. As of today, June 1, 2016, I haven't received my terminal leave, and my pension and supplemental income check.
Hopefully, my terminal leave will come in on June 3.

Hang in there Mari it will come in due time! If I remember mine took about three months before everything was settled and my regular checks came in! Hopefully you have a little tucked away for the meantime! Good luck to you!

Fortunately, we made sure we have emergency money tucked away. I understand the pension check to be delayed, but I don't understand why the terminal leave is delayed when it is "cut and dry."

 

[weatherweenie]

Fortunately, we made sure we have emergency money tucked away. I understand the pension check to be delayed, but I don't understand why the terminal leave is delayed when it is "cut and dry."

I've heard, in some cases, that it takes 4-6 months to get pension/annuity checks on a regular basis.

 

[alevin]

Mari, there is a whole thread on this particular subject over at Fedsoup.com, the free forum section of feddaily newsletter. you may want to check it out.

 

[konakathy]

Fortunately, we made sure we have emergency money tucked away. I understand the pension check to be delayed, but I don't understand why the terminal leave is delayed when it is "cut and dry."

When I retired from the USPS last summer it took 6 weeks before I received my AL check. Congratulations on your retirement, you're going to love it! I've been traveling, sleeping in and doing whatever I want.....freedom is a beautiful thing.

 

[Maricar19]

When I retired from the USPS last summer it took 6 weeks before I received my AL check. Congratulations on your retirement, you're going to love it! I've been traveling, sleeping in and doing whatever I want.....freedom is a beautiful thing.

I am enjoying it, but not enjoying it yet to the fullest. We took a Cancun vacation in May and some day trips after that.Other than the fact that I am able to catch up on my reading, I have to find something to keep me busy and active.TSP Talk is the only one that is keeping me busy.

Next week is my 6th week - so maybe my terminal leave check will come.

 

[Maricar19]

TSP Talkers: When I submitted my retirement paperwork, my husband waived the survivor annuity since he will also receive a federal pension when he decides to retire.
Now I am having second thoughts about the decision to waive my spousal annuity.
Since I have not received the first regular monthly payment, I still have time to change/revoke the waiver. Am I right?
I tried to call OPM, but it was asking for a CS number which I don't have yet, and I tried to call our HR but I am not in their system anymore.
Any advice?

 

[nasa1974]

TSP Talkers: When I submitted my retirement paperwork, my husband waived the survivor annuity since he will also receive a federal pension when he decides to retire.
Now I am having second thoughts about the decision to waive my spousal annuity.
Since I have not received the first regular monthly payment, I still have time to change/revoke the waiver. Am I right?
I tried to call OPM, but it was asking for a CS number which I don't have yet, and I tried to call our HR but I am not in their system anymore.
Any advice?

I'm a little surprised you haven't received your CS number yet. Mine showed up in about 2 weeks after retiring (CSRS). My annual leave showed up in about a month and two months for my first check. I know some folks that were 6-9 months before getting their first check. Anyway, not having a survivor benefit for your husband you will receive more in your monthly check. You should be able to ask someone at OPM a question even without your CS number. Good luck.

 

[burrocrat]

TSP Talkers: When I submitted my retirement paperwork, my husband waived the survivor annuity since he will also receive a federal pension when he decides to retire.
Now I am having second thoughts about the decision to waive my spousal annuity.
Since I have not received the first regular monthly payment, I still have time to change/revoke the waiver. Am I right?
I tried to call OPM, but it was asking for a CS number which I don't have yet, and I tried to call our HR but I am not in their system anymore.
Any advice?

i don't understand how this works, by waiving the survivor annuity when you submitted your paperwork, do you mean he waived his right to half of yours, so you get more of yours? and you are reconsidering whether you should've also waived your right to half of his? so he gets none of yours but you want to retain half of his? do i understand this right?

forget the tax advisors and financial consultants and opm, i think you guys should go see a marriage counselor.

 

[Maricar19]

I'm a little surprised you haven't received your CS number yet. Mine showed up in about 2 weeks after retiring (CSRS). My annual leave showed up in about a month and two months for my first check. I know some folks that were 6-9 months before getting their first check. Anyway, not having a survivor benefit for your husband you will receive more in your monthly check. You should be able to ask someone at OPM a question even without your CS number. Good luck.

I called OPM again and was on hold for 53 minutes, I was given my CSA#, but I was told I can't log on yet because I have to wait for the password.
However, she was kind enough to let me know that OPM had authorized an interim check as of 6/2/2016. So I should see a direct deposit around the 5th or the 6th of June.

 

[Lakebound]

I called OPM again and was on hold for 53 minutes, I was given my CSA#, but I was told I can't log on yet because I have to wait for the password.
However, she was kind enough to let me know that OPM had authorized an interim check as of 6/2/2016. So I should see a direct deposit around the 5th or the 6th of June.

That's good news. It's too bad that you had to call to get action. Your password should come in the mail soon and then you can log in and register an email address to receive updates regarding your case. Wishing you the very best, things will work out.

Frank

 

[PessOptimist]

i don't understand how this works, by waiving the survivor annuity when you submitted your paperwork, do you mean he waived his right to half of yours, so you get more of yours? and you are reconsidering whether you should've also waived your right to half of his? so he gets none of yours but you want to retain half of his? do i understand this right?

forget the tax advisors and financial consultants and opm, i think you guys should go see a marriage counselor.

I think you have have this kind of backwards burro. Mari says rethinking waiving of survivor benefits to spouse. Spouse has not yet retired from Federal service.

This SBP thing is a crap shoot insurance thing. If the annuitant lives five years, the premiums equal one year of benefits. For life. Not sure what kind of term life policy covers that.

PO

 

[burrocrat]

I think you have have this kind of backwards burro. Mari says rethinking waiving of survivor benefits to spouse. Spouse has not yet retired from Federal service.

This SBP thing is a crap shoot insurance thing. If the annuitant lives five years, the premiums equal one year of benefits. For life. Not sure what kind of term life policy covers that.

PO

so 5:1 odds to call now? then in the berries if make it to 5 years later? and the payoff later exceeds 5 berries? hmmm, what are the chances of that?

maybe this is selfish, but if i die first, and especially within 5 years, i don't want that old rip spending my money forever with her new boyfriend. in fact, i hope she ends up eating beans and weenies out of a can in an alley sitting around an old industrial barrel fire. it builds character. now git!