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Thread: PessOptimist's Retirement Story

  1. #73

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    Default Re: PessOptimist's Retirement Story

    PO,

    With your sick leave calculating out to 1 month and 22 days you will only get credit for monthly units. If you do not take any sick days you will lose out on getting paid for those 22 days.
    May the force be with us.

  2.  
  3. #74

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    Default Re: PessOptimist's Retirement Story

    Quote Originally Posted by nasa1974 View Post
    PO,

    With your sick leave calculating out to 1 month and 22 days you will only get credit for monthly units. If you do not take any sick days you will lose out on getting paid for those 22 days.
    Got it nasa, thanks. This will have to be addressed closer to retirement time and I will try to use it all just on gp's.

    PO

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  5. #75

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    Default Re: PessOptimist's Retirement Story

    Quote Originally Posted by PessOptimist View Post
    Got it nasa, thanks. This will have to be addressed closer to retirement time and I will try to use it all just on gp's.

    PO
    Just be careful not to take too much and then you lose the one month. I gave back 3 days just to play it safe.
    May the force be with us.

  6.  
  7. #76

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    Default Re: PessOptimist's Retirement Story

    Quote Originally Posted by PessOptimist View Post
    Thinking about things pertaining to my retirement, what to do about the catch up contribution to TSP?

    The TSP and IRS language is “you must elect to contribute the maximum amount before you are eligible to make catch-up contributions”. The 2018 max is $18,500 which is $712 per pay period. If I also continue to contribute $231 per pay period for catch up and then retire mid-year, have I fulfilled the requirement of contributing the maximum? Will the IRS come after me like I was Al Capone? Will they demand I put an additional $7820 in to TSP? Will they demand I pay taxes on the $3465 catch up contributions?

    Being able to contribute the max and catchup amounts per year has been a good but not easy place to be. The question was brought up by a wannabe retirement advisor. Not sure if I am serious about even bringing it up here.

    PO
    They haven't come after me yet If you are retiring mid year you could actually contribute $24,500 if you wanted while still working if you can afford to. You can also just increase your regular TSP to cover the amount you are currently contributing to both (not a good idea if you may change your mind and delay retirement & miss out on any matching)

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  9. #77

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    Default Re: PessOptimist's Retirement Story

    Quote Originally Posted by evilanne View Post
    They haven't come after me yet If you are retiring mid year you could actually contribute $24,500 if you wanted while still working if you can afford to. You can also just increase your regular TSP to cover the amount you are currently contributing to both (not a good idea if you may change your mind and delay retirement & miss out on any matching)
    Great idea! Can I borrow about $12,000 next year? I promise I will pay it back as soon as...well never mind. That scenario crossed my mind about maxing it out with the hopeful leave sell back but..maybe I should just leave it as is since one never knows what may happen.

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  11. #78

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    Default Re: PessOptimist's Retirement Story

    I got a couple more estimates from my go to HR retirement specialist. I stated before she worked for the mother of the mother agency but was wrong. She works at an agency that is a mercenary for the mother of the mother agency. Whatever, she seems very competent. Just proves you can never be sure who is calculating or in charge of your retirement based on what agency you work for.

    Whatever the agency is, they are using a new program to estimate retirement pay. The product you get has a FedHRNavigator logo in the upper right corner.

    The two estimates were seven days different but showed a $$ per year difference. There is no difference in the years/months listed, only the days. Then I noticed my high three calculation increased $$. Hmmm.

    I asked the HR person some questions and will let you know the answers.

    PO

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  13. #79

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    Default Re: PessOptimist's Retirement Story

    First to answer the last post, the difference in the amount was due to my high three. I took a new job 11/2 years ago at about a 20% pay increase. So, duh, of course high three will go up. I just never thought so much. The other question for HR was why they always recommend FERS employees retire at the end of the month. Answer is your first interim annuity payment arrives on the first day of the second month after retirement. In other words retiring 6/30 starts the annuity 7/1 which is paid 8/1. So retiring 7/8 starts the annuity 8/1 and the first payment is 9/1.

    I thought I had it all planned out, retire 6/30, sell back 336 days AL, start SS at 66y2mo on 7/1, SO starts SS at the same time 62y5mo, still get military annuity and VA disability, kick back and not have to touch TSP. Maybe.

    Then I attended a webex about something unrelated and they had a presentation from my HR go to person about military, CSRS and other time deposits or buy back. Guess the end of the year is slow for this division.

    I started thinking that the last time I addressed this was 2014 and maybe I should check it out again since my pay has increased since then.

    Back story-when I hired on as a FED in 19 and 97 I was told that if I paid the deposit I would have to waive my military annuity at that time. The amount of the deposit at that time was $11,199 which was a small fortune I didn’t have so based on the amount and information about the annuity it was a no brainer to say no thank you.

    Along about 2012 I ran in to a FED who was also a retired military lifer who claimed he was buying back his military time and still receiving his military annuity. He did not have to waive it until he started drawing his FED annuity at retirement. He also stated he would lose none of the other lifer benefits such as access to exchange, commissary and most importantly TriCare health insurance.

    I did some checking on my own and found he was right. I also checked out the money difference in FED annuity after deposit v military annuity + Fed annuity at that time and came up that it was better to remain status quo. The only real difference was I would have been retirement eligible under MRA+10.

    I revisited this in 2014 and found it would take almost 10 years to reach the break even point after paying the deposit and the FED annuity still wasn’t enough even with collecting SS at 62yo. So I put that idea away.

    Now I find that the break even point from 6/30/18 is 21/2 years and the additional income is over $8k per year. I have yet to have gotten an official annuity estimate if I pay the deposit and haven’t really verified that it will not reduce or eliminate the VA disability pay and health insurance under TriCare for Life.

    Lot’s to check out keeping in mind that males from both sides of my ancestry usually expire in their early 80s. I would be 69y8mo old at the break even point under the buy back scenario. Would it be worth it?

    Is there anyone out there in a similar situation who could tell me their experience? Similar being, receiving military annuity, VA disability pay, paid military deposit to get FERS credit for the years, waived military annuity at FERS retirement and did it effect the VA disability or TriCare insurance?

    PO

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