Stoplight's Retirement Story (FERS, Gap in Service, Military Buy-Back)

[Stoplight]

My bi-weely leave and earnings statement has the total amount I have contributed to FERs to date on it. Have you looked on yours? My pay is processed by the national finance center.

Kaufmanrider,

Well, that there is one of those "gotcha's" that makes my personal situation...ummm..."different"

My last pay stub shows my cumulative deduction, but ONLY for my time with my last employer ! Between my 2 other Agencies I've worked for, plus my gap in service, I'm not sure just HOW I'd come up with my "career" deduction for tax purposes

I have Quicken files going back to at least 1993, so I have a rough idea of how much it was, but I was hoping that, as part of the OPM final numbers, they'd give me that one, too !


Stoplight...

 

[Scout333]

Kaufmanrider,

Well, that there is one of those "gotcha's" that makes my personal situation...ummm..."different"

My last pay stub shows my cumulative deduction, but ONLY for my time with my last employer ! Between my 2 other Agencies I've worked for, plus my gap in service, I'm not sure just HOW I'd come up with my "career" deduction for tax purposes

Stoplight...

Stop, I believe you'll get a Form 1099R which should show your contributions so you can figure the"non-taxable" portion of your retirement at least for CSRS. Not sure about FERS folks.

 

[Scout333]

Stop, I believe you'll get a Form 1099R which should show your contributions so you can figure the"non-taxable" portion of your retirement at least for CSRS. Not sure about FERS folks.

http://www.irs.gov/pub/irs-pdf/p721.pdf

 

[Stoplight]

http://www.irs.gov/pub/irs-pdf/p721.pdf

Awesome, Scout ! Thanks for the relevant link !

You've answered my question...right there near the top of page 5, it says your OPM annuity statement shows "...your total contributions to the retirement plan (your cost)."

One more thing to check for when I finally GET my OPM annuity statement


Stoplight...

 

[Stoplight]

StopLight, Now that you've made the commitment to move into an IRA, I would recommend you investigate Intrepid Timer's Premium Service. His annual returns for trading TSP, ETF's and Mutual Funds are outstanding. There are many others on this site, besides me, who can vouch for that. Congratulations and Good Luck!

OTOH, the "Sentiment Survey" is beating I-T....go figure ! Perhaps the collective "gut feeling" of those who participate in the survey is worth following, as well

I took a quick look at the info on I-T's page before I decide to sign up, and I gotta admit, I'm still a little confused on how I'd implement it within my IRA. The example mutual funds and ETF's are all available to buy or trade through my USAA account, but now I need to look at USAA's commission and fee structure a lot closer to see what my "costs" would be


Stoplight...

 

[Stoplight]

First Steps With My TSP


Mindful of the experiences of transferring out of the TSP reported by Elgallo and others, I'll post updates on MY experiences.

Today I received, via email, the completed TSP block IX back from USAA, so we'll go get the notarized signatures tomorrow for the rest of the rollover package. Once I have that, we'll fax to TSP.

I can't complain about USAA...they turned my request around in 2 business days.

One minor annoyance, though...they seemed to think they should have my entire package, and be the ones sending to TSP. This is in spite of me telling them explicitly that I just wanted their part of the form returned to me, and I'd submit it...they faxed it to TSP anyway !!! Maybe they're not used to somebody taking responsibility for their own paperwork...

Oh well...I got what I needed, so I'll submit to TSP tomorrow ! The USAA email said it usually takes 6-8 weeks for the money to be transferred, and the only way I could determine the status of the transfer, until the money shows up in my IRA, was through TSP, due to "privacy concerns"...well, DUH


Stoplight...

 

[nasa1974]

Today I received, via email, the completed TSP block IX back from USAA, so we'll go get the notarized signatures tomorrow for the rest of the rollover package. Once I have that, we'll fax to TSP.

I can't complain about USAA...they turned my request around in 2 business days.

One minor annoyance, though...they seemed to think they should have my entire package, and be the ones sending to TSP. This is in spite of me telling them explicitly that I just wanted their part of the form returned to me, and I'd submit it...they faxed it to TSP anyway !!! Maybe they're not used to somebody taking responsibility for their own paperwork...

Oh well...I got what I needed, so I'll submit to TSP tomorrow ! The USAA email said it usually takes 6-8 weeks for the money to be transferred, and the only way I could determine the status of the transfer, until the money shows up in my IRA, was through TSP, due to "privacy concerns"...well, DUH


Stoplight...

It looks like things are slowly moving forward. Now for OPM to step up. Good luck.

 

[Stoplight]

One minor annoyance, though...they seemed to think they should have my entire package, and be the ones sending to TSP. This is in spite of me telling them explicitly that I just wanted their part of the form returned to me, and I'd submit it...they faxed it to TSP anyway !!! Maybe they're not used to somebody taking responsibility for their own paperwork...

Stoplight...

Well, a MAJOR annoyance ! Today I got a thick letter in the mail from TSP...they complained that they got the USAA fax, but it was just 1 page, of the many that are required for a rollover ! They sent me the full Partial Withdrawal form package (TSP-77)...

I don't blame the TSP...they're just responding, via snail mail, to the incomplete fax they got from USAA...My only complaint with them is that the TSP doesn't respond via email, but took a few days to send me a snail mail package...My biggest complaint is that USAA didn't follow my request, and send me the page BEFORE they submitted it to TSP...

I faxed the entire completed paperwork to TSP on 9/25, with the notarized signatures, etc. I hope I'll get some sort of snail mail confirmation from the TSP of their receipt of the entire package....will call them tomorrow and see where I stand...

And, FWIW, I have no change on my OPM status...got a check for my interim account payment for October...guess that OPM specialist is still trying to figure out what they owe me !!!


Stoplight...

 

[nasa1974]

Well, a MAJOR annoyance ! Today I got a thick letter in the mail from TSP...they complained that they got the USAA fax, but it was just 1 page, of the many that are required for a rollover ! They sent me the full Partial Withdrawal form package (TSP-77)...

I don't blame the TSP...they're just responding, via snail mail, to the incomplete fax they got from USAA...My only complaint with them is that the TSP doesn't respond via email, but took a few days to send me a snail mail package...My biggest complaint is that USAA didn't follow my request, and send me the page BEFORE they submitted it to TSP...

I faxed the entire completed paperwork to TSP on 9/25, with the notarized signatures, etc. I hope I'll get some sort of snail mail confirmation from the TSP of their receipt of the entire package....will call them tomorrow and see where I stand...

And, FWIW, I have no change on my OPM status...got a check for my interim account payment for October...guess that OPM specialist is still trying to figure out what they owe me !!!


Stoplight...

It just amazes me that TSP is so far behind the digital age and how large their budget is. It baffles me how they can get away with it and how much it is costing us the members of this ancient thinking agency. My wife was able to merge 3 seperate IRA's from 3 seperate companies into one IRA with a phone call and our government 401k agency has to depend on FAX machines and snail mail. Good luck.

 

[Stoplight]

...and our government 401k agency has to depend on FAX machines and snail mail. Good luck.

Nasa,

Had to LOL at that comment, Nasa ! I had to fumble around behind my old desktop computer to FIND the modem jack, and plug in a line...glad I still have a machine that even HAS a fax modem !

Ah, but it brought back memories, listening to those distinctive dial-out tones, and that annoying whine of an answering fax machine...reminded me of the days I used to log on to Compuserve !

While I've not received anything from TSP, they DO show a banner in red on my TSP account web page (only when I click on the "Withdrawls" page, though). It says :

"Pending Partial Withdrawal Request.

Your partial withdrawal request is being reviewed. Requests received via fax or the US mail
will generally be processed within 7 to 10 business days of receipt."

So I guess the rollover process is moving forward...


Stoplight...

 

[Stoplight]

Finally Finalized !!!

WOO HOO ! Today, the OPM web site is showing my case as finalized a/o 1 Oct ! My annuity statement page shows the finalized amount for my 1 Nov payment, and I no longer have the "Interim Menu" !

For the record, my basic annuity amount is +$2, but my Supplement amount is -$13, so I was -$11 off on the numbers I used to calculate whether or not I could afford to retire ! I don't think I'll HAVE to look for a job for $11/month My payment consists of my base pension plus the FERS Supplement, minus health care premium and Fed taxes. I don't have a State income tax in Florida, or FEGLI, or any other deductions.

I haven't crunched the numbers as closely for Fed taxes, but I'll keep an eye on that and adjust as needed. Right now, they're withholding ~8.6%...filed a W-4 with my package, but I don't remember what I told them to take out...don't want to OWE them anything, but I don't want a big refund, either.

Based on the Nov statement, I should get a net back pay of ~$8K...nothing has shown up at the bank yet, but that should pull me back into the black on YTD expenses.

Man...what a relief to get this resolved !


Stoplight...

 

[nnuut]

Congratulations SL, it's about time, ENJOY!!!!!

 

[Frixxxx]

Congrats Stoplight! Well deserved....Way to hang in there!

 

[nasa1974]

Stoplight, Congratulations. Only one month behind me. Good luck with TSP.

 

[Stoplight]

Good News, and Bad News

The GOOD news is...OPM posted my back pay to my bank account, dated 2 October ! It's ~$200 less than I calculated, and I haven't received anything from OPM to indicate how that number was calculated. I suspect they took more out in Fed tax than I figured, because the health care premium is a fixed number, and easy to figure.


The BAD news is...my struggle to roll over part of my TSP continues. The short version of the story : While I have not received anything else from TSP in the mail, my TSP web account is now showing "Partial Withdrawal Rejected". I had a conversation with a nice TSP service rep, who said my fax of the complete package cut off the bottom of the pages, and thus, our signatures were "invalid" ! She said "You'll be getting a letter..."

She told me to go ahead and try re-faxing the forms, and check back with them tomorrow afternoon. She said if a bad fax comes in, it'll show up quickly in their system. If it's a good fax, they won't have a record of it in their system for a few days...and reminded me that Monday was a holiday. So, I guess if I call tomorrow, and they have no record of today's re-fax, then that's a GOOD thing ?? Just plain weird...

I told her, "You know ? Between you and me...it sure would be nice if I could just email the PDF to the TSP, and the TSP could just email back if there was a problem !" She said : "...security issues..."

Sure am glad I'm retired, and have time for this stuff !


Stoplight...

 

[Stoplight]

Awesome, Scout ! Thanks for the relevant link !

You've answered my question...right there near the top of page 5, it says your OPM annuity statement shows "...your total contributions to the retirement plan (your cost)."

One more thing to check for when I finally GET my OPM annuity statement

Stoplight...

“Your Federal Retirement Benefits”

Well, Saturday’s mail brought me my pamphlet containing OPM’s complete calculation of my retirement benefit. Lot’s of good summary information in there to review !

RE: taxes...they did take out a larger number than I would’ve expected, and did not factor in what was previously deducted from my interim pay. I’ll just have to make sure the end-of-year statement of how much was withheld includes both the back-pay number and the interim pay number.

Another interesting point : the statement DOES include a discussion of the total amount I had paid into the system, and even calculated the number for the monthly “tax-exempt” portion of my pay (using the “simplified method”) ! The total amount was quite a bit higher than I was expecting...but the thing I didn’t take into account was the military buy-back deposit...Duh ! That amount, which OPM correctly listed, goes into that same retirement pot as your basic pension paycheck deduction, so it’s used in computing your tax exempt portion.

The statement also confirms that I will NOT receive any sort of COLA until age 62, when my supplement goes away, too. Guess that means I’m TRULY on a “fixed income” for the next 5 years...maybe I’ll need that part-time job after all

I guess this pretty much wraps up my retirement story...I’ll post relevant information if anything exciting changes with my pension check, or if anyone has a question for me that I can answer !

I WILL continue posting about my attempt to do a partial rollover of my TSP, and the follow-on “full” withdrawal.


Stoplight...

 

[Scout333]

Stop, Congrats on receiving your "full retirement check"! Thanks again for sharing! Lets us know what to expect.

 

[Stoplight]

Good News, and Bad News

The BAD news is...my struggle to roll over part of my TSP continues. The short version of the story : While I have not received anything else from TSP in the mail, my TSP web account is now showing "Partial Withdrawal Rejected". I had a conversation with a nice TSP service rep, who said my fax of the complete package cut off the bottom of the pages, and thus, our signatures were "invalid" ! She said "You'll be getting a letter..."

She told me to go ahead and try re-faxing the forms, and check back with them tomorrow afternoon. She said if a bad fax comes in, it'll show up quickly in their system. If it's a good fax, they won't have a record of it in their system for a few days...and reminded me that Monday was a holiday. So, I guess if I call tomorrow, and they have no record of today's re-fax, then that's a GOOD thing ?? Just plain weird...

Stoplight...

Update : So here's what the TSP web site is now showing for my partial withdrawal:[h=1]Withdrawals: Civilian[/h]

• Print this page
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Pending Partial Withdrawal Request.

Your partial withdrawal request is being reviewed. Requests received via fax or the US mail will generally be processed within 7 to 10 business days of receipt.

Rejected Partial Withdrawal Request.

Your partial withdrawal request was rejected during processing. An explanation has been sent to you at your address of record.


The top message is new, so I'm assuming the latest fax made it through, and so far, so good :worried:


Stoplight...

 

[Dutchy]

Congratulations on your full retirement payment !! Sorry about your TSP problem... I transfered 75% of my TSP to a Scottrade IRA which I now trade via Intrepid Timers Premium Service, with great results!

 

[nasa1974]

“Your Federal Retirement Benefits”

Well, Saturday’s mail brought me my pamphlet containing OPM’s complete calculation of my retirement benefit. Lot’s of good summary information in there to review !

RE: taxes...they did take out a larger number than I would’ve expected, and did not factor in what was previously deducted from my interim pay. I’ll just have to make sure the end-of-year statement of how much was withheld includes both the back-pay number and the interim pay number.

Another interesting point : the statement DOES include a discussion of the total amount I had paid into the system, and even calculated the number for the monthly “tax-exempt” portion of my pay (using the “simplified method”) ! The total amount was quite a bit higher than I was expecting...but the thing I didn’t take into account was the military buy-back deposit...Duh ! That amount, which OPM correctly listed, goes into that same retirement pot as your basic pension paycheck deduction, so it’s used in computing your tax exempt portion.

The statement also confirms that I will NOT receive any sort of COLA until age 62, when my supplement goes away, too. Guess that means I’m TRULY on a “fixed income” for the next 5 years...maybe I’ll need that part-time job after all

I guess this pretty much wraps up my retirement story...I’ll post relevant information if anything exciting changes with my pension check, or if anyone has a question for me that I can answer !

I WILL continue posting about my attempt to do a partial rollover of my TSP, and the follow-on “full” withdrawal.


Stoplight...

Stoplight. Congratulations. Good luck with TSP. I'm looking to take a partial withdrawl around the first of the year.