A news and educational resource pooling excerpts from various news and information sources from the web for the Federal Retiree.
Article Excerpt: "...Kane, 90, had heard that Social Security recipients were a getting a 2 percent raise, so he had to chuckle when he saw his statement of benefits for 2018. “I couldn’t believe my eyes,” said Kane, a Scotsman living in Scotland, Pennsylvania. “I’ve never seen an increase of $1..."
If you receive a TSP withdrawal payment before you reach age 59½, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10% of any taxable portion of the payment that is not transferred or rolled over. However, if you separate from service during or after the year you reach age 55 (or the year you reach age 50 if you are a public safety employee as defined by section 72(t)(10)(B)(ii) of the Internal Revenue Code), then the 10% early withdrawal penalty tax does not apply. There are other circumstances in which the 10% early withdrawal penalty does not apply that are not associated with your age at retirement. For more information, read the TSP tax notice "Important Tax Information About Payments from Your TSP Account."
Article Excerpt: "...When you hit retirement age, you won’t have to pay taxes on withdrawals. That can give your savings a powerful boost if your tax rate is higher in retirement. For example, a person who saves the maximum $5,500 for 30 years in a Roth could end up with an account worth $555,902, compared with a traditional IRA worth $472,835..."
Article Excerpt: "...The House had included those instructions in its version of the budget resolution that cleared the chamber earlier this month. The original House proposals were vague, but potential changes would likely include higher employee contributions to the federal defined benefit pension plan, an elimination of supplemental payments to employees who retire before age 62 and a move to a defined contribution pension plan for new federal employees..."
Article Excerpt: "... the House version ordered its counterpart committee to produce $32 billion in savings over 10 years through steps such as raising the required retirement contribution and eliminating the “special retirement supplement” paid to those who retire under FERS before age 62 until they reach that age and become eligible for Social Security..."
Article Excerpt: "...A paycheck can temporarily reduce Social Security payments if you're drawing benefits before your full retirement age..."
Article Excerpt: "...With Congress and the White House proposing major changes in the federal retirement program, many retirement-eligible workers are considering retiring soon (like this month or next) in order to beat the changes. The problem is that nobody knows the effective dates of the proposals and which of them, if any, might be approved in what’s left of the legislative year..."
Article Excerpt: "...those same unscrupulous individuals might also attempt to steal countless amounts of Social Security income from otherwise unsuspecting workers and seniors. Let's talk about those seniors who are currently receiving benefits. If criminals get hold of their personal information, there's nothing to stop them from redirecting payments toward a new bank account..."
Article Excerpt: "...How do your investing habits compare with other federal employees and retirees? How long have you been investing in the TSP? How often do you trade? How do you react to significant swings in stock prices? Please take this short survey to share your feedback..."
Article Excerpt: "...The average person who signed up for Social Security in the past year was awarded $..."
Article Excerpt: "...Do the members of Congress get full pay having served just one term in office..."
Article Excerpt: "...In a civil lawsuit, the SEC said the brokers targeted federal employees who were near retirement and held large sums in Thrift Savings Plan (TSP) retirement accounts. The lawsuit said the brokers misled the workers about fees and other significant details of the investments, including that the investments were privately issued and weren’t endorsed by or affiliated with TSP..."
Article Excerpt: "...Social Security’s blog is a go-to source for news and resources. That’s why we named it Social Security Matters — it matters to everyone even if you don’t think you directly benefit from Social Security benefits today...."
Article Excerpt: "...Many companies that once offered generous defined benefit plans — often at no cost to the employees — have dropped them. Instead, workers must finance their retirement with Social Security benefits, investments in their 401(k), savings and other investments. When Congress set up the TSP, congressional experts predicted that it would provide anywhere from one-third to one-half of all the money feds would have in retirement..."
Article Excerpt: "...But instead, the majority of senators thought it would be easier to steal $150 billion from the Social Security trust fund, thus moving up the date that that system is scheduled to go bankrupt, and provide a temporary patch to SSDI instead. SSDI spending has grown more than six-fold in the last 40 years, and in the last 10 years alone we’ve added almost 3 million more people to the SSDI payroll. Inflation alone cannot account for this growth rate, and with the advances made in medical technology, enrollment rates should be going down..."
Article Excerpt: "...If someone who has worked a few years passes away, their family may be able to collect up to 180% of their Social Security benefits..."
Article Excerpt: "...the “general rule of thumb” in FERS is to retire on the last day of the month—no matter what day of the week!...Normally, you must be at least 59 ½ year old to take monies out of your retirement savings account (like TSP..."
Article Excerpt: "... Social Security's book of rules can -- at times -- read like a copy of War & Peace. But you shouldn't let that intimidate you. In the end, I believe there are three simple rules that every citizen of the United States needs to know by heart..."
Article Excerpt: "...There have been multiple proposals in recent years to eliminate the defined benefit portion of FERS and move new hires (not existing employees) to a plan based entirely on Social Security and the Thrift Savings Plan..."
Article Excerpt: "...That's three or more years later than what's normally considered retirement age, although "normal" is a shifting standard. It's also the age New Jersey Gov. Chris Christie proposed last year when he was running for president. Former Florida Gov. Jeb Bush, also a candidate, also suggested a shift in the range of 68 to 70, though with few specific details..."