It’s that time of year when employees start asking, “What’s the best date to retire?” Well, there isn’t a single date that’s best for everybody. Still, there are some dates that are better than others. I’ll explain why. Time of month The rules governing the time of month to retire are different for CSRS and FERS. FERS employees have to retire no later than the last day of a month to be eligible for an annuity payment in the following month; CSRS employees may retire up to the third day of a month and be eligible for an annuity in…
Browsing: taxes
Q. Is the 10 percent FERS survivor benefit reduction pretax or post-tax? In other words, if your FERS benefit is $50,000 and the spouse reduction is $5,000, is your pension income reported to the Internal Revenue Service as $50,000 or $45,000?
Q. I am under CSRS. My service computation date is Nov. 13, 1983. I have 34 Social Security quarters paid. Can I pay the remaining Social Security quarters in lump sum, or do I have to work to contribute? Will this be to my advantage?
Q. I retired from CSRS but did not buy my military time (six years) due to misinformation/misunderstanding. Now they are taking away what little Social Security I was receiving. If I go back to work, under Social Security payments, will I be able to build that up and then be eligible for Social Security benefits?
Q. My wife receives Social Security benefits under my contributions and from hers. She is not a federal retiree, but a retired teacher who had 20 calendar months uncovered, which was credited by the teachers’ pension as eight school months. The government pension offset was applied against her whole Social Security benefit. Does the GPO get applied in this manner, or should it be similar to the windfall elimination provision, which goes against only the portion of pension dependent upon the uncovered months?
Q. Are annuity payments received during retirement taxed? In other words, does the formula provided for calculating annuity computation determine the gross payment?
Q. Can you draw both workers’ comp and Social Security disability? I am a FERS employee who was put on Office of Workers’ Compensation Programs rolls because no work is available to me due to my work restrictions. Is there a penalty during both? Is either one taxable? Or am I forced to drop workers’ comp? And how does this affect me with my Veterans Affairs Department disabilities?
Q. If I left the service in 1999 but have not taken out my CSRS funds. How do I withdraw them? What forms are needed and they need to go to whom? Is the 20 percent federal withholding required to be withheld?
Q. I retired Dec. 31, 2011, at 58½ with 30 years and five months of federal service with the Defense Department. I am receiving a monthly special retirement supplement of $915 after taxes. I realize this will cease when I turn 62, and I will have to file for Social Security. Will I then receive this same amount from Social Security, or will it be my normal expected amount for age 62 (somewhere around $1,400, I believe)?
Q. I retired under FERS in January 2010 after 23 years of service. In September 2012, I reached my minimum retirement age of 56½ and started receiving a supplemental annuity since I was too young to begin receiving Social Security benefits. I was informed that if I was employed and making over $14,000 a year, I would lose the supplemental annuity, calculated proportionately with how much I was making over the $14,000 threshold. Is nontaxable income considered income that would affect my supplemental annuity payment? Does tax-exempt income earned overseas affect my supplemental annuity payments?