Retirement UPDATE!!
1. So far I'm waiting for my first Monthly Pay Check, they say it will be about 80% of the correct amount until they finalize the numbers.
2. They also say that I should get my pay for the Annual leave I cashed in about 6 weeks from my retirement date (422 hours)? Don't forget to send the State some TAX money or they will penalize you for not paying during the year. OPM only takes Federal Tax out, at a rate of about 20%!!
A. Received payment for Cashed in Annual leave on pay date 01/08/10 417.50 Hours!! BOY was that Fast, I retired on the 2nd of January, so far so GOOD! Looks like 33% Tax to me!!
This counts on 2010 TAXES, which is GOOD!!!
3. leaving TSP money in the TSP, can withdraw Monthly distributions which can be a dollar amount or a percentage. When I do I've decided to take 4% a a year for now. That's until I'm 70.5 years old then the Gov't forces retirees to withdraw Mandatory Distributions, which is much higher.
5. I can start withdrawing Social Security in March if I want. I paid SSA for 17 years and should get about $750 a month, but I'm CSRS and we have to deal with the WEP (Windfall Elimination Provision) which reduces my SSA by 60%!!
! I will start when I turn 65, my full retirement age is 66 so I will pay another penalty of 1.2% for drawing it early. That would reduce it to $285 a Month, THANK YOU! Still thinking about that one! I think it's better to go ahead and take the cut.
A. Applied on line for SSA and Medicare parts A (free for me) and B. Part B should cost $110 a Month, they will take it out of my SSA check Monthly. This morning I had to go to the local Social Security Office to give them some documents DD214 etc. They finalized my applications to start in March, they said I should get my first check in April, we will see? Yeah RIGHT!!!
6. Medicare----------------! When I turn 65 I am MANDATED to apply for Medicare. It will become my Primary Health insurer FEHBP is secondary but if you keep FEHBP it's secondary and pays their part of what Medicare doesn't pay, BUT your PREMIUMS remain the same as other Gov't workers!! You MUST apply for Medicare within 3 months of your 65th birthday or get penalized and your premiums will be higher FOREVER!! Part A is Free for me and Part B costs $110 a month, sense I have FEHBP I don't need part C of Medicare Advantage. Still thinking about that one too!!
For those interested I will update this as things happen.