Many federal employees could be in a higher marginal tax bracket by the time they withdraw their traditional TSP and traditional IRA accounts. Ed Zurndorfer gives insight on why transferring a traditional Thrift Savings Plan to a Traditional IRA — and then converting to a Roth IRA — may be beneficial. Practical examples and suggested steps are provided more…
5 Mistakes to Avoid When Making TSP Required Minimum Distributions
Knowing the required minimum distribution (RMD) rules is extremely important because of the severe IRS penalties — plus the missed planning opportunities. Ed Zurndorfer discusses common mistakes to avoid. more…
The Truth About ‘Water Cooler Experts’
Chris Kowalik reveals the real truth behind why so many federal employees take advice from the “self-appointed office experts” at the proverbial water cooler more…
A Misunderstanding of the Early Withdrawal Penalty for Disability Applicable to the TSP and IRAs
The exception to the 10 percent early withdrawal penalty for disability applicable to Thrift Savings Plan participants and to IRA owners is a source of much confusion. Ed Zurndorfer examines when a TSP participant and an IRA owner can make penalty-free withdrawals more…
Earnings Test of the FERS Retirement Annuity Supplement
The retiree annuity supplement is a monthly benefit paid to certain employees under the Federal Employees Retirement System who retire from federal service before age 62. Ed Zurndorfer discusses how the “earnings test” may cause the annuitant to lose a portion — or all — of their RAS if earned income exceeds the maximum permissible. Practical examples are included more…