PessOptimist's Retirement Story

[nnuut]

That 100% really does nothing, you will get your $2500 and you can still move your account around just like you do now. That's what I've been doing for more than 8 years! The trick is to make enough money to replace what you withdraw and make it last as long as you can!

 

[PessOptimist]

I understand that nnuut. Just saying they could classify as something else than 100% withdrawal. This is interim planning to get us through this year. Income taxes are going to be different this year as I have earned income from the former J.O.B., SS from the spouse and me and TSP withdrawal. All will settle down within the next year or so.

When and if this surgery takes place is up to the Prima donnas, I meant fine qualified surgeons, and if they can fit it in and I am sure if they believe our medical insurance will pay for it.

Life goes on and retirement is not always as seamless as I might have thought. It sure does beat working.

PO





PO

 

[nnuut]

I understand that nnuut. Just saying they could classify as something else than 100% withdrawal. This is interim planning to get us through this year. Income taxes are going to be different this year as I have earned income from the former J.O.B., SS from the spouse and me and TSP withdrawal. All will settle down within the next year or so.

When and if this surgery takes place is up to the Prima donnas, I meant fine qualified surgeons, and if they can fit it in and I am sure if they believe our medical insurance will pay for it.

Life goes on and retirement is not always as seamless as I might have thought. It sure does beat working.

PO





PO

You are exactly right it is very confusing!!

 

[PessOptimist]

More FYI updates on my three-legged FERS retirement. I got a letter from SSA today saying I am entitled to monthly husband’s benefits beginning July 2019. Well, yeah, I applied for them.

The next paragraph says beginning with the month I become 66 they will no longer reduce my SS payments because of earnings or self-employment. Their records show I will be 66 on May 26, 2018. Letter is dated July 2, 2019. You would think they would have a way to update the form letter. Maybe not, they are the .gov. It goes on to state what my monthly payment will be on or about the fourth Wednesday of each month. Then is tells me I am entitled to medicare beginning May 2017. They charge for that, no mention of what part. Then they list what medicare cost (I must assume part B) in May 2017, Jan 2018 and Jan 2019. Then states they are taking medicare premiums out of the check I will receive around August 28, 2019. Then states I will receive a mediicare card within two weeks. I have had one since May 2017

Then it tells me where to call if I have medicare questions and advertises medicare part D.

Next paragraph is “Do You Think We Were Wrong? and tells me how to appeal.

If anyone really wants to see this letter I will attach it as a .pdf.

It looks like I am receiving spousal benefits and my own benefits are increasing under delayed retirement benefits. The letter doesn’t back that up as it states “this benefit is the only benefit you can receive from us”. Not true I hope.

This is so typical of both SS Administration and OPM. Send a snail mail with unclear statements and show nothing that explains it on the web page until a month or so later.

I believe that my plans are coming together as to what I want as to monies coming in. The .gov agencies involved don’t make it easier.

PO

 

[nasa1974]

Not sure why they make things so complicated and confusing. Good thing you got your act together or things would be really complicated.:laugh:

 

[Mcqlives]

Double check your SSN for ID theft. Someone else could be trying to file for benefits under your number. Something similar just happened to my widowed aunt.

 

[PessOptimist]

Thanks Mcq. They know it's me. No false tax returns or military stuff either. (SS number is military service number for USAF since 1 Jul 69) Scary to think about though.

PO

 

[PessOptimist]

Updates on the retirement stuff.

I received my TSP monthly payment full withdrawal on Jul 9[SUP]th[/SUP]. I faxed the form Jun 25[SUP]th[/SUP], saw a notice on the web site it was disbursed on Jun 29[SUP]th[/SUP] and EFT will be processed on Jul 5[SUP]th[/SUP]. The money appeared on Jul 9[SUP]th[/SUP]. The Jul 9[SUP]th[/SUP] balance reflected the withdrawal with a corresponding reduction in the number of G fund “shares”

This amount is more money than I would like to withdraw but running one of TSPs calculators using the lowest G fund return rate recently (2012, 1.47%) I will suck all the money out in my early 90s.

My SO has applied for SS on her benefits and I have applied for spouse benefits based on that. I fit in to some gap where my own benefit will continue to increase until I am 70 and then I start receiving that amount. If anyone wonders why it is because of the spousal benefits SO will receive if I predecease her. I love that word, predecease.

At the point I turn 70 I will reduce the TSP monthly payment accordingly. Shortly after that I will have to start getting MRD from the TSP. A TSP calculator shows that amount should suck the account dry in my 100s. Now of course all that may change based on desires for more money. No sense not spending what we can. Prudence says we must save some for eventual hospice payments.

To recap for anyone reading this, I retired from fed service 0n 31 Dec 18. My OPM amount was finalized (adjudicated they call it) in late February, the final amount was paid on Apr 1[SUP]st[/SUP], 2019. It includes deductions for federal taxes, FEHB, dental and vision insurance.

I sold back the maximum amount I could of annual leave. This amount allowed for us to have money available to live on while everything else was finalized.

In May SO applied for benefits from SS. I also applied for spousal benefits from her benefit. This will arrive o/a Aug 28[SUP]th[/SUP]. From my spousal benefit medicare part B will be deducted.

I started a “full withdrawal in monthly payments” from TSP in July.

Income taxes, both fed and state, are a little iffy right now. No fed taxes were taken from the TSP as it is less than ½ year. Taxes are being taken from OPM amount for fed and SS isn’t saying yet. I also have earned income from my last fed paychecks and the AL payment. State income taxes don’t apply to SS and give a small break to annuities. I expect to owe the state a lot of money next year. No worries, that is why you should have some funds put aside your last year. 2020 will be hard to predict as well. By that time hopefully I will actually be able to predict my taxable income.

That pretty much covers the three legs of FERS. I am supposing that the only reason to post any more here will what happens at tax time or if anything changes with the income.

A LOL (I think) is SS sent me a new Medicare card today. Everything is the same as the last card I got. I suppose when you apply for or change benefits, they automatically issue a new one? Seems like a waste of time, paper and printer ink to me.

PO

 

[PessOptimist]

I have gotten a reach out from a financial firm I have dealt with in the past telling me I will starve to death if I do not let them manage my retirement money. Friends/acquaintances of the SO are telling her I need to put TSP in the market or she will have no money. One of her acquaintances says the G fund is going to start taking money to meet the national debt. Ah well, good thing she or her acquaintances don’t yet control the TSP. I suppose all this is possible. I also realize that if the TSP was in one of the stock funds it would have gained a lot more this year so far.

I also realize that since I don’t watch it enough with all other things going on that if it were in annuities, I probably wouldn’t do an IFT soon enough to prevent a loss. Whatever I do is going to be wrong.

This will drop off the current subjects list until the “friends” get bored during SO’s recovery period at which time they will start to tell her I am pissing away her money.

It will be good to have friends/acquaintances supporting me during the upcoming surgery. It will be bad having them telling SO how badly I have fucked up her investments. That is part of my life. I do wish they would concentrate on the recovery and stop telling her the money will soon be gone.

Just me complaining and trying to justify why all has been in G fund for so long. Calculators say it will last in to our 90s. Long term care not covered by the two insurance companies is another issue that I hope doesn’t happen.

PO

 

[nasa1974]

Just me complaining and trying to justify why all has been in G fund for so long. Calculators say it will last in to our 90s. Long term care not covered by the two insurance companies is another issue that I hope doesn’t happen.

PO

Our FA pitched two long term care programs at us about a year ago. The up front cost was pretty reasonable. The problem we had was if we ended up not needing long term care all that money disappeared and wouldn't be part of our estate and be passed on to our daughters.

 

[PessOptimist]

I’ve been retired one year. It has been good to not have to get up, go to work and deal with all the problems.

Been keeping busy with the wife’s medical stuff so no, I don’t know what I will find to do when I retire. This has kept me busy enough. That and repairing stuff that breaks.

To recap, I retired on 12/31/18 with 21.5 years federal service (FERS). No breaks, change of station or military buy back. I sold back 440 hours annual leave for which I got paid on 1/17/19 with my last normal paycheck. My first interim OPM payment showed up 2/7/19. An adjustment and another interim payment showed on 3/1/19 and I started getting the final monthly amount on 4/1/19. The SOL website which I think has the perfect acronym, shows a statement dated 2/1/19 with zeros in all blocks. 3/1/19 shows the final interim payment. No mention anywhere of the first interim payment and the adjustment. News about 1099R is “not available”. No hint as to date.

Other income has been starting wife’s SS benefit in August, my spouse SS benefit in August and a TSP “full withdrawal” with monthly payments in July.

Tax time is here and I was a bit concerned that both SS and TSP payments had no withholding. Their rule since it was less than ½ year. I chose not to override that. I have started a return in Turbotax and faked 1099Rs from TSP and OPM. Looks like I may be OK. I won’t know until I get all the 1099s and see what they put in which blocks. State taxes are a whole other thing.

Speaking of Turbotax, I have been thinking for years that it is way too expensive but keep using it. Tax prep fees are not deductible if you don’t itemize, no matter what TT says. I find I can’t use many of the free offers since I need to file a Schedule E. So it goes on.

Any questions about how this all rolled out are welcomed. Any advice as well.

PO

 

[Scout333]

Any questions about how this all rolled out are welcomed. Any advice as well.

PO, Once you get this year's return filed with partial year income numbers you should be able to project next year's full year numbers, guestimate tax amounts for next year, and adjust your withholdings to cover taxes due. The first full year will be hard to be accurate with your estimating but after that pretty easy. I always allow a pretty good cushion cause I hate to owe Uncle at year end. LOL Tax rate tables are easy to find online. Good Luck!

 

[nasa1974]

1099's from OPM should be available to download by end of January.

 

[PessOptimist]

Any questions about how this all rolled out are welcomed. Any advice as well.

PO, Once you get this year's return filed with partial year income numbers you should be able to project next year's full year numbers, guestimate tax amounts for next year, and adjust your withholdings to cover taxes due. The first full year will be hard to be accurate with your estimating but after that pretty easy. I always allow a pretty good cushion cause I hate to owe Uncle at year end. LOL Tax rate tables are easy to find online. Good Luck!

Thanks. Have estimated 2020 income from adjusted Jan payments. Should have a good handle on it all.

 

[PessOptimist]

1099's from OPM should be available to download by end of January.

Yes saw that and the DFAS site has been updated to show W2s will be available 1/18. Getting there just getting antsy about getting taxes done.

PO

 

[Maricar19]

[h=2]Refund of premium death benefit[/h][FONT=&quot]If your FLTCIP 3.0 coverage is in force on your date of death, a refund of premium death benefit may be payable. Any PSF amount available will be paid as a refund of premium death benefit to your estate or a beneficiary you designated and who is on file with us, if the beneficiary is alive on your date of death.[/FONT]
[FONT=&quot]The refund of premium death benefit will be based on the PSF percentage in effect on your date of death. To determine the amount available, we will process any outstanding claims received and recoup any claims overpayments.[/FONT]

 

[PessOptimist]

I posted this in my account talk but it also belongs here. Snipped some stuff out.

Recap is I spent all the AL payout and last two paychecks on expenses. We managed to make it last until about June 2019. Then we started SS for the wife who was 63 at the time. I also started receiving spouse benefits based on what is posted below. By that time OPM payments were finalized. We started withdrawing from TSP about that time. Withholding was not right so we owed IRS and AZ money. I hope I’ve fixed that.

I am hopeful that when I turn 70 I can begin receiving my own delayed retirement credits. I hope I did it all that correctly under the Bipartisan Budget act deemed filing rules. Going to myssa website does not give me confidence. We will see what happens in two years.


FWIW here is what I got from SS site a few years ago:

I turned 62 before January 2, 2016. Does the new law on deemed filing under the Bipartisan Budget Act affect me
No, if you turned 62 prior to January 2, 2016, the new law that extends deemed filing rules to benefits at FRA and beyond will not apply to you.

Can I restrict my application for benefits and apply only for spouse’s benefits and delay filing for my own retirement benefit in order to earn delayed retirement credits?
If you turn 62 before January 2, 2016, deemed filing rules will not apply if you file at FRA or later. This means that you may file for either your spouse’s benefit or your retirement benefit without being required or “deemed” to file for the other. In your case, you may also restrict your application to apply only for spouse’s benefits and delay filing for your own retirement in order to earn delayed retirement credits. However, if you turn age 62 on or after January 2, 2016, you are required or “deemed” to file for both your own retirement and for any benefits you are due as a spouse, no matter what age you are.
https://www.ssa.gov/planners/retire/deemedfaq.html
I turned 62 in May 2014. I turned FRA May 2018. I applied for restricted benefits in June 2019. I sense a fight coming up. Time will tell.

Best of luck everyone and retirement is all good if you have planned for it.

PO

 

[Scout333]

Good luck PO! Let us know how everything turns out!

 

[PessOptimist]

Good luck PO! Let us know how everything turns out!

I will, Lord willing, crick don't rise and I don't drool on the keyboard and short out something. That's two years from now.

 

[PessOptimist]

Update on taxes and SS payments.

Short recap, I retired 31 Dec 18 with 21+ years fed service at 66 yo. I didn’t have enough withholding taken out of the OPM amount and ended up owing big time. 6k+ fed+AZ for 2019.

Income taxes are finally sort of evened out. That should change next year, so will have to see. Fed refund was $142 more than I owed AZ. Both relatively small amounts. IA is its own thing and making estimated payments. I will leave withholding alone for now.

In 2019 I applied for restricted spousal benefits from SS. Under their rules that I turned 62 before 2 Jan 16 and was at FRA which was 66 for me. Been receiving that since Aug 2019. Today I called SS (you can’t do it on line) and after a short 40+ minutes on hold, the nice lady made me a telephone appointment with my local SS office for 7 Apr 22. No problem so far and the rep knew exactly what I wanted to do.

I’ll post the results of the 7 Apr call.


PO