Browsing: Tax

Q. Why wouldn’t the Office of Personnel Management give you an option to have taxes withheld if a survivor annuity is taxable? What a huge shock to find out that I owe $6,000!

Q. I am a FERS retiree. My total retirement contribution that’s been taxed is $16,000. I understand this is averaged through my mortality and have a portion every month, tax free. Is there an option where I can take the total $16,000 and apply all in a given tax year as tax free even though that will eliminate the monthly, tax-free amount?

Q. My wife in the 1980s, for about two years, worked full time as a registered nurse at the VA in West Haven, Connecticut. My understanding is that she may be entitled to some sort of retirement-related benefit (albeit small) as a result of working there. She shared with me that some tax was deferred to another federal mechanism — for lack of a better term. Any thoughts on where to start looking?

Q. I recently attended a FERS retirement seminar and was told that buying back my enlisted military retirement is a bad idea because it would be close to $40,000 to $50,000. I have calculated my buy back on several online federal calculators and don’t come up with anything near that cost. I am calculating all of my active duty earnings from my entry date on active duty through my retirement date — 20 years and one month. I have included the 10 years of interest I have accrued as well since I did not buy it back within my first four years of…

Q. Let’s say I make a partial withdrawal for $50,000 in late November to make a down payment on a new house, and then retire in December. And automatically withheld is $10,000. I also still fall into the 28 percent tax bracket. Will that remaining $40,000 be taxed at 28 percent or 8 percent?