Q. What are the deductions/withholdings from the lump-sum payment of unused annual leave at retirement? Obviously, federal and state taxes will be deducted, but what about federal pension, Thrift Savings Plan, federal health and life insurance, etc.? I plan to take out a loan from my TSP which will have to be repaid when I retire, so I want to make sure I have sufficient funds from payment of my annual leave balance at retirement to pay off the loan. Therefore, I need to know what deductions will be.
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Q. I turned 65 last November and am still working as a federal employee. As required, I filed for Medicare and became covered by it also in November. I become fully eligible for Social Security on my 66th birthday and intend to retire shortly thereafter. Since I am not currently receiving Social Security, I am paying a quarterly Medicare premium of about $320. On my earned leave statement, I notice I am also paying a “Medicare tax” on my biweekly earnings. Is this paying twice for the same thing? Or what is this Medicare tax covering?
Q. I retired under CSRS effective Sept. 1, 2011. I thought that my annual annuity would be exempt from federal taxes until those monies I had contributed over those many years of service were exhausted. I am referring to dollars contributed to my retirement account far in excess of $100,000. I have filed two years of taxes using TurboTax software, and it seems that most, if not all, of my retirement annuity is being taxed without any exemption for my retirement contributions. Am I simply misinformed that I ought to be receiving a federal tax exemption until such time as…
Q. How much is usually received after taxes on a $25,000 Voluntary Separation Incentive Pay buyout? Also, how is my lump-sum annual leave payment taxed? Is it based on my current exemptions?
Q. My agency has offered a Voluntary Separation Incentive Pay (incentive is $25,000). I have worked 26 years and nine months and am considering this offer. Someone told me that not everyone will receive the full incentive of $25,000. Is there a calculation used to determine the actual amount one will receive?
Q. I am 57 years old with 30 years of service. When I retire, will I continue to pay Social Security tax from my retirement pay?
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 Supplemental Security Income 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. Is lump-sum annual leave money paid to CSRS employees after they retire added in as part of our salary for the year we retire to be included in our final benefits calculations?
Q. I am a CSRS postal retiree wanting to get state tax withheld. Cannot find an address to send form W-4P.
Q. Are federal taxes taken out of the lump-sum payment for annual leave? And If I withdraw all of my Thrift Savings Plan upon retirement, will the tax be taken out before I receive the payment?