Question 1
Hi great channel! I will be retiring in March with 20 years of service under the law enforcement FERS and I am concerned because we are being told it’s going to take 6 months to receive even a partial FERS check and up to 12 months to receive the full amount. Also we are being told it may take up to 6 months to receive money from the TSP and just as long to receive your leave payout as well. I don’t know many people that can survive 6 months with no pay. What can be done? Thank you!!!
Answer 1
This is a big concern for retirees because you are right that it would be difficult for many folks to survive for 6 months without any income.
Unfortunately, outside of filling out your application without mistakes there isn’t a ton you can do to speed up the process of OPM processing your application (outside of retiring in a slow time of year). With that being said, it is not normal for it to take a full 6 months to receive partial (interim) checks and 12 months for the full amount. It generally doesn’t take that long but it has in some cases.
And when it comes to your TSP you can generally access it as soon as your agency informs TSP that you are separated from service. This normally doesn’t take that long but if there are mistakes on your agency’s or TSP’s end then it can certainly slow things down.
If you are over 59 and ½ then a potential work around would be to take an in-service withdrawal from your TSP before you retire so you have some money at your disposal right away. Also, it is always recommended to have a health emergency fund to get through the first months with less stress.
Question 2
1st of all I would like to thank you for all the information you provide us federal employees. I constantly talk to anyone who will listen to me about your videos and everything I have learned watching them. Ok, my question is: my wife and I are both federal employees ( both age 43) with a MRA of 57. I will have 36 years of federal service at 57, which means immediate retirement so I will carry the FEHB for both of us. My wife, however, will have 26 years of federal service at 57, which is when we both plan on retiring. How long does she have to postpone her pension so she doesn’t have her pension reduced? Also, what else will she lose out on as far as benefits if she retires at 57 her MRA with 26 years of federal service? Thank you!
Answer 2
Because your wife will have 26 years of service at your MRA, she’ll have to postpone her pension until age 60. The downside of postponing her pension is that she won’t have insurance coverage (life, health, etc) during the years that she isn’t receiving a pension. But because it sounds like you will cover her under your FEHB during those years then it may not be a problem assuming she doesn’t need other types of coverage during that time (dental/vision/life).
Question 3
My son will be receiving DAC benefits starting in Sept when my Social Security starts. He will be getting a good amount monthly so I want to place some of it into something that will grow so that he will have it when his parents are no longer around. With him not working can you still put money into a Roth IRA or something like it? Thanks
Answer 3
Great question and you are right. You have to have “earned” income to save into an IRA. “Earned” income is generally defined as W2 income or business income.
But that doesn’t stop you from saving money in a brokerage account and investing it for him. A brokerage account doesn’t have the same tax benefits of a retirement account but it is often still very much worth it to invest money that you don’t need for a while.
