Question 1
Can I retire at 57 (MRA+10), Postpone my pension until 62 and still be able to get around the 10% penalty for early withdrawal from the TSP between 55-59 1/2?
Answer 1
The short answer is yes. As long as you retire after the year you turn 55 then you can access your TSP without the 10% penalty.
When you start your pension does not affect this rule at all.
Question 2
Can I stop working as a GS employee at 55 with 10 yrs of service but not retire from gov service until 57(MRA+10) and still receive a pension at 62? Or do I have to have continuous employment till 57 to be eligible?
Answer 2
If you leave the government at 55 with 10 years of service then you would be able to get a deferred retirement as early as your MRA (with penalties) or age 62 (without penalties).
Learn more about deferred retirement here.
If you worked all the way until 57 then you would be eligible for a MRA+10 retirement which would mean you could keep your health insurance into retirement as well.
Learn more about MRA+10 retirement here.
Question 3
My husband is a federal employee FERS. We file taxes together. When he retires, will my work income be used to reduce his FERS supplement and/ or affect him when it comes to taxes? Can you do videos about how a spouse’s income could affect a retiree? Clarity gets lost when I remember we file together. Thanks in advance.
Answer 3
Both of your incomes will be counted together for tax purposes just like it is now.
However, when it comes to reductions that could happen (if he was working another job) to his FERS Supplement or Social Security, they will only look at his income.
So as long as he doesn’t take another job or start a business then his retirement income won’t be reduced no matter how much money you, as the spouse, makes.
