Q. I am a FERS employee with 14 years service, age 53. Tired of the pay freeze and “no money for promotions” line. Also tired of doing the jobs of higher paid co-workers while they call in sick two to three days a week. If I resign, can I take my FERS and Thrift Savings Plan in one lump sum and walk away? I am also a military retiree and have my pension and Tricare health care plans from that, so that is not a concern. Understanding the tax hit, will I just receive what I contributed, or the fed matching,…
Browsing: taxes
Q. I retired in 2006 after 39 years of federal service under CSRS. I receive a retirement annuity every month. I’m doing some contractor work and have over 10 years under Social Security. If I apply for Social Security benefits, will my CSRS monthly annuity be decreased by the Social Security amount? If so, what benefit is it to pay Social Security taxes if I won’t ever apply to receive them? Also, do you have to pay this tax?
Q. Are retirement benefits for FERS employees (Postal Service) subject to state (Georgia) and federal income taxes?
Q. The Windfall Elimination Provision states: “The only work you did where you did not pay Social Security taxes was before 1957, or you have 30 or more years of substantial earnings under Social Security.” Are these statements separate or combined? What does the year have to do with it? What is the formula for calculating substantial earnings? Take into consideration that at the time, single mothers with three dependents did not earn “substantial earnings.” By the way, how much is substantial? It seems to me that the date I began work eliminates the windfall, along with my almost 30…
Q. I am eligible to retire Nov. 1 but plan on staying until around the end of the calendar year. I will receive a lump-sum payment for unused annual leave. I would like the taxes on that lump-sum payment to be on my 2014 taxes. What is the best date for me to retire? I am assuming it would be either the 1st, 2nd or 3rd of January 2014 so that I can began receiving my annuity Feb. 1.
Q. I have insurance payments taken out of my survivor annuity check each month. Are they pretax?
Q. I am a fully vested CSRS employee with the Environmental Protection Agency for 33 years at age 55. I have received my numbers, but I missed my first date to retire. How long does it take to receive my first full check? Worst-case scenario? Best-case scenario? And is there any way to speed up processing? When will I receive my annual leave payment? Will it be immediate in one lump sum without taxes since I already paid taxes on my leave? Should I take all of my Thrift Savings Plan out at once or leave about 10,000 in and…
Q. I will be retiring at the end of this year with 37 years and 10 months of service. I am a CSRS employee who will be 57 years old in September. My annual annuity would be $81,958 a year. I will have a little over $200,000 in my Thrift Savings Plan account. Is it smartest to take the spousal annuity or take out a life insurance policy on myself to sustain my wife once I pass away? My annual annuity will be reduced by around $7,900 a year if I choose the spousal annuity. Which would be the wisest?
Q. When I retire, I will be 59½ and will have 30 years of service at the Postal Service. I will not have any earned income from that point on. I understand federal and state taxes will be taken out of my FERS annuity and any money I take out of my Thrift Savings Plan. Will I also have Social Security deducted from these two sources? Also, will my special retirement supplement and — when I turn 62, my SSI benefit — also be subject to federal and state taxes?
Q. I started drawing Social Security at age 69 — about $2,000 in benefits. At age 77/78/79, I have worked and made $60,000 per year. I have paid FICA and Medicare tax. Will my monthly Social Security benefit go up?