With perhaps thousands of federal employees having to leave federal service as a result of reductions-in-force (RIFs), the question becomes for many: How to access their Thrift Savings Plan accounts? In column one of a two-part series, Ed Zurndorfer discusses how separated federal employees younger than age 55 can make penalty-free TSP withdrawals. Presented in this column is the TSP annuity and TSP monthly payments based on life expectancy more…
Some Separating Federal Employees May Qualify for Discontinued Service Retirement
Over the last several weeks, there have been thousands of federal employees who have received notice that they are or will be involuntarily separated from federal service. Those employees who have 20 or more years of creditable federal service may be eligible for a discontinued service retirement (DSR). A discontinued service retirement means that an employee is eligible to retire and be able to immediately start collecting their CSRS or FERS annuity. Ed Zurndorfer discusses the DSR option and rules for CSRS and FERS employees more…
Homeownership Can Shelter Federal Employees and Retirees from Income Taxes
Ed Zurndorfer outlines some key tax deductions and tax exclusions associated with homeownership that federal employees and retirees should be aware of when it comes to owning, buying and selling a home more…
Taxation of Lump-Sum Payment of Refunded CSRS or FERS Contributions
Federal employees who leave federal service before they are eligible to retire can apply for a refund of their CSRS or FERS retirement contributions. Ed Zurndorfer discusses the federal income tax consequences of the lump-sum distribution of CSRS and FERS retirement contributions. more…
Update on Implementation of Social Security Fairness Act
Ed Zurndorfer outlines the latest information issued by the Social Security Administration regarding implementation of the new law repealing the WEP and GPO. Includes impact on a beneficiary’s payments and the agency’s challenges in implementation more…
High Income Federal Employees Have Options for Funding Roth IRAs: Part II
With Roth IRAs — together with Roth TSP accounts — federal employees can save for their future retirement in a tax-free way. Any Roth accounts remaining at their deaths can be passed on to family members tax-free. However, high-earning federal employees who may be limited or even barred from contributing to a Roth IRA. Ed Zurndorfer outlines three more methods to fund their Roth IRA. Practical examples are included more…
Some Considerations on OPM’s Deferred Resignation Program
Ed Zurndorfer breaks down some of the issues federal employees should consider regarding the “deferred resignation program” offered by the Office of Personnel Management. Includes references to opinions from groups representing federal employees more…
High Income Federal Employees Have Options for Funding Roth IRAs: Part I
With Roth IRAs — together with Roth TSP accounts — federal employees can save for their future retirement in a tax-free way. Any Roth accounts remaining at their deaths can be passed on to family members tax-free. However, high-earning federal employees who may be limited or even barred from contributing to a Roth IRA. Ed Zurndorfer reveals opportunities outside of direct Roth IRA contributions that will allow them to fund their Roth IRAs. Practical examples are included more…
FERS Postponed Retirement
Ed Zurndorfer outlines the postponed retirement option for those in the Federal Employees Retirement System (FERS) including the strategy to minimize or eliminate the annuity reduction. Several practical examples are included more…
FERS Deferred Retirement Option
Ed Zurndorfer discusses the option for FERS employees who elect to leave federal service before they are eligible for an immediate (and unreduced FERS annuity) retirement and may be eligible to receive their FERS annuity at a later date more…