Q. Will my FERS supplement be taxable income? A. Yes
Browsing: FERS
Q. I have a rather complicated question concerning my FERS retirement. I took an early retirement under FERS at the end of 2009. I retired on Dec. 31, 2009 at the age of 59. Because of the pay periods in 2009, the last pay period of December actually ended on Jan. 2, 2010. This pay period therefore became pay period 1 for 2010. Therefore, my last pay check and annual leave show as earned income in 2010. My retirement date started on Jan.1, 2010. Since my last check and annual leave earnings show as earned in 2010, do they count…
Q. I am a FERS retiree. I receive a special retirement supplement. Is this taxed? I have not gotten anything except my 1099R from the CSA. A. Although the special retirement supplement is designed to approximate the Social Security benefit you earned while employed under FERS, the money comes from the CSRS Retirement and Disability Fund. As such, it is taxed in the same way as the rest of your annuity. A portion of that total is nontaxable while the rest is taxable. To find out what the nontaxable portion will be, go to www.irs.gov/pubs/irs-pdf/p721.pdf and read the IRS’ Tax…
Q. I am currently a FERS employee in the GS system. This is my situation: I had 15 years of active-duty time, at which time I left the Navy and have continued in the Reserves. I started in the GS system, bought my military time back (about $18,000 for 15 years active duty) and in 2011 will have five years as a GS employee to total 20 (military + FERS years). My question is: Can I choose to take a deferred retirement in 2011 if I no longer want to stay with the federal government and pick up that pension…
Q. I currently have 34 years, starting under CSRS and switching over to FERS when that was offered (so about 10 years under CSRS). I plan on working another three years and retire when I am 57. I resigned after my first three years and withdrew my money. If I don’t pay this money back, what difference would that make in my retirement? How will they figure CSRS and FERS? A. Your CSRS component will be figured using the standard CSRS formula: 0.01 x your high-3 x 5 years of CSRS service, plus 0.0175 x your high-3 x five years…
Q. Are new employees automatically enrolled in FERS, or do you have to make an election? A. All new federal employees first hired on or after Jan. 1, 1987 (and most employees first hired after Dec. 31, 1983), are automatically covered by FERS.
Q. When I retire under FERS, I understand I will have two survivor annuity options (50 percent or 25 percent of my full annuity) to cover my wife when I’m gone. My question is, what is meant by “full annuity?” Does it mean my wife will get 50 percent of what my annuity would be before the 10 percent reduction to pay for it, or will she get 50 percent after the 10 percent is taken out to pay for the full survivor annuity? A. She will get 50 percent of what your annuity would be but for the reduction…
Q. My husband is retired from the Army and is now working as a FERS employee. Once he can retire at 62, does Social Security offset his military? I am medically retired under CSRS. Since I did not pay into Social Security, can I collect Social Security under my husband? A. Any Social Security benefit to which he would be entitled will be in addition to his military retired pay. That benefit will be based on his total years of Social Security-covered service. If he meets the age and service requirement to retire under FERS, based solely on his FERS…
Q. I am now eligible as a CSRS/FERS hybrid for a maximum pension for my previous service, since I am over 62. I understand there is no more actuarial adjustment (higher annual benefit) after age 62 for delaying receipt. My last employment was about 20 years ago. If I take my annuity and am later rehired, I understand that I cannot have my high-3 and high-5 years recalculated unless I serve more than 5 years. However, what if I just don’t take my annuity? Aren’t I then eligible for redetermination for each year of re-employment? Is there any age at…
Q. I plan on retiring in September at age 60. I left service for a period of years and took the amount I had in my retirement that had accumulated for the two years I was under CSRS. When I came back I was put into the FERS. How will taking that money out affect my retirement? A. As a rule, you won’t get any credit for that time unless you redeposit the amount you took out with accumulated interest. Because that short period of CSRS service will automatically be treated as FERS service, you’ll need to check with your…