Ed Zurndorfer discusses the earned income – salary/wages/net self-employment income – reporting requirements for FERS Special Retirement Supplement (SRS) annuity recipients including a review of eligibility requirements, how the annuity is calculated, possible reductions due to excess earnings, the reporting deadline (June 30), and how to report earnings to OPM. Several practical examples are included. more…
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Guide to 529 College Savings Plans for Federal Employees
529 college savings plans are one of the best tax-efficient ways to set aside money for a child’s or a grandchild’s post-secondary education. Ed Zurndorfer provides a quick guide including school eligibility, qualified expenses, how to make payments and properly save receipts, IRS reporting of distributions, plan transfers, and plan rollovers at death more…
Roth IRAs May Not Be the Best Choice for Some Federal Employees, Retirees
Ed Zurndorfer discusses which federal employees and retirees are not eligible to contribute to a Roth IRA and the reasons why — plus which employees and retirees should not consider Roth IRA conversions, including the transfer of a traditional TSP account to a Roth IRA more…
Participants Sue Thrift Savings Plan for Processing Delays
The class action lawsuit filed last week alleges that the system failed to disburse loan proceeds, send hardship withdrawals, and process death benefits to beneficiaries more…
What You Should Know When Amending a Federal Income Tax Return
Millions of individuals file amended tax returns to correct errors or omissions. Ed Zurndorfer discusses the important deadlines, the best way to file, and how to handle errors more…
TSP Required Minimum Distributions (RMDs)
Ed Zurndorfer provides a detailed outline of the required minimum distributions (withdrawals) for the Thrift Savings Plan including the required beginning dates under current law, how RMDs apply to the different TSP withdrawal options, and RMDs for TSP beneficiaries. Several practical examples are also included. more…
Understanding TSP Rollover Rules
Ed Zurndorfer discusses the rollover option of a separated Thrift Savings Plan participant’s TSP account to an IRA or to an eligible employer-sponsored retirement plan – including a 401(k) plan, a profit-sharing plan, a 403(b) tax-sheltered annuity or an eligible 457(b) plan maintained by a government employer more…
Special Considerations for TSP Distributions
Ed Zurndorfer discusses some special considerations for a separated Thrift Savings Plan participant’s distributions from their account including vesting requirements, the TSP mutual fund window, spousal rights, and required minimum distributions (RMDs) more…
Bipartisan Senators Reintroduce Legislation to Keep Chinese Firms Out of Thrift Savings Plan
If passed, the Taxpayers and Savers Protection Act would ban the Federal Retirement Thrift Investment Board from steering federal retirement savings to China and other countries of concern more…
Using the TSP to Fund a Roth IRA
Ed Zurndorfer discusses how a Thrift Savings Plan account can be used to fund a Roth IRA — specifically, the tax-free direct rollover of a portion of a traditional TSP account to a traditional IRA, which in turn is converted to a Roth IRA (a taxable event) more…