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Post by Deleted on Jul 28, 2013 15:53:20 GMT -5
If you are talking about employer contribution to the TSP, the employee will only get taxed when he withdraws the money either by cashing out in lump sum, periodic payments, or moving it out of the TSP to a taxable account. It is therefore very important when you retire thast if you do a rollover, you do it directly to another tax deferred account whithout taking control yourself, unless you wish to do so. Otherwise, you will incur in a tax liability.
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Post by Deleted on Jul 28, 2013 16:04:18 GMT -5
No, you only get taxed on the money you yourself contribute.
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Post by bartleby on Jul 28, 2013 19:49:59 GMT -5
Don't forget that your pension offers survivors benefits, so if you are married to a young sweetie, it could be a good deal for someone.
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Post by zebra51 on Jul 29, 2013 12:26:01 GMT -5
Also for the new feds that are Veterans. Make sure to buy your military time to make it count monetarily for your retirement.
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Post by usnjudge on Jul 29, 2013 15:16:12 GMT -5
Zebra51:
It's a mite more complex than you've offered up, but it is a good idea. Prior military time MIGHT be credible toward overall federal service. If one is already compensated for military service in terms of retirement, then that time would NOT count toward over all fed service. This is just a general idea: OK, assume a 25 year Vet with 4 years at the academy. Well, the 25 years active duty is part of a retirement already but the 4 years at the Academy is not...that should be convertable to FERS now (at some cost). Another vet with say, 4 years active duty...yep, that should count as the retired vet's academy time (and should be convertable to FERS). The other thing that this time MAY count toward is computation for leave/sick leave. That can be huge. For example, our 25 year vet would NOT be able to count their 25 years for leave computation purposes, but could potentially get their 4 year academy time in. Our other vet should be able to get that 4 years added too (for leave computation reasons). Let me also add - and this is in a prior thread - even if a vet IS being compensated by a retirement check and can't buy other time into FERS...one may still be able to goose up their leave compensation time if they have combat zone deployments, etc. For me, I got bumpkus for active duty time but am getting a retirement. I was able to get a lot of time added to me leave computation date thus moving me from getting 4 hours per pay period to 6 hours.
Agilitymom, et. al, help me out here.
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Post by agilitymom on Jul 29, 2013 15:35:21 GMT -5
For the vets who are retirees, the bump in leave (4 to 6 hours) is awesome (you don't have to wait 3 years). The rules are:
Service Credit
Service Credit for Leave Rate Accrual and Retirement
Not Retired from Uniformed Service
For non-retired members, full credit for uniformed service (including active duty and active duty for training) performed under honorable conditions is given for leave accrual purposes, and for retirement purposes provided a deposit, as required by law, is made to the retirement fund. Uniformed service as defined in 5 U.S.C. 2101 means the Armed Forces, the commissioned corps of the Public Health Service, and the commissioned corps of the National Oceanic and Atmospheric Administration.
Veterans first employed in a position covered by the Civil Service Retirement System (CSRS) on or after October 1, 1982, or in a position covered by the Federal Employee Retirement System (FERS) on or after January 1, 1984, must make a deposit to the retirement fund of 7 percent (for CSRS) or 3 percent (for FERS) of basic military pay to obtain retirement credit.
Veterans employed in civil service positions before October 1, 1982, have the option of either making a deposit to cover their military service or having their civil service annuity recomputed to delete post-1956 military service if they are eligible for social security at age 62.
Retired from Uniformed Service
Credit for uniformed service is substantially limited for retired members. In enacting the Dual Compensation Act in 1964, Congress adopted a compromise between the view that retired members should receive preference and full credit for their service and the view that there should be no advantage for retired members.
For leave accrual, retirees receive credit only for:
•actual service during a war declared by Congress (includes World War II covering the period December 7, 1941, to April 28, 1952) or while participating in a campaign or expedition for which a campaign badge is authorized (you file an SF 813); or
•all active duty when retirement was based on a disability received as a direct result of armed conflict or caused by an instrumentality of war and incurred in the line of duty during a period of war as defined in 38 U.S.C. 101(11). "Period of war" includes World War II, the Korean conflict, Vietnam era, the Persian Gulf War, or the period beginning on the date of any future declaration of war by the Congress and ending on the date prescribed by Presidential proclamation or concurrent resolution of the Congress. For retirement:
An employee must waive military retired pay to receive any credit for military service unless the retired pay is awarded based on a service-connected disability incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war as defined by 38 U.S.C. 301, or awarded under 10 U.S.C. chapter 1223 (previously chapter 67).
5 U.S.C. 6303, 8332 and 8411(c)
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Post by usnjudge on Jul 30, 2013 8:28:30 GMT -5
Shazam! There it is. Many thanks A-mom!
Just a vote of confidence to this board. Its folks like A-mom that gave me info like filing a SF813 to get a few more benefits. I think I got like 16 mos added to my leave comp date that will get me 6 hours leave vice 4 hours. Not quite a total of all my deployments but I am certainly not complaining.
This board is FULL of great tidbits of information. It is a wonderful resource and campground of advice...remembering some campgrounds are better than others.
Thanks again A-mom.
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