Your article gives a CSRS retiree example for taxation of annuity benefits. Does it affect a FERS retiree in the same manner? Thanks.
Re: Question about FERS employees
John Grobe Federal Career Experts Wed Feb 6, 2008 3:03 PM
Yes. The FERS employee will likely have even a higher percentage taxed, because so much less is withheld from the FERS employee's salary (0.8% vs 7%).
TSP Withdrawal
Crying Baby DA Wed Feb 6, 2008 9:41 AM
I think I know the answer already and that is why I am crying. Last year I took an over 62 withdrawal from my TSP account and even the 20% withholding does not cover mt tax when the withdrawal was added to my salary. I have to pay tax on both full amounts, right?
Taxable Annuity
Supervisory Loan Specialist Veterans Affairs Wed Feb 6, 2008 10:03 AM
Does the IRS use actuarial tales in determining life expectancy or just use 360 months for everybody? Do they use 360 months for the 57 year old retiree AND for the 67 year old retiree?
Re: Taxable Annuity
John Grobe Federal Career Experts Wed Feb 6, 2008 3:04 PM
They use a modified actuarial table that you can find in IRS publication 721.
FERS, Social Security and TSP
program analyst DHHS Wed Feb 6, 2008 10:15 AM
For those of us under FERS, how does contributions from private sector employment figure into the final annuity - is it one payment only or one from FERS and one from Social Security - I know I am optimistic. Similarly, how does the amount of your FERS/SocSec annuity factors with the TSP - will TSP be taxed and given in installments?
Re: FERS, Social Security and TSP
John Grobe Federal Career Experts Wed Feb 6, 2008 3:08 PM
I hope this answers your question(s). TSP is fully taxable. Social Security can be up to 85% taxable (an IRS publication, the number of which I forget, explains SS taxability).
IRS life expectancy estimates
Retiree USDA Wed Feb 6, 2008 11:31 AM
I wonder what the IRS knows that the insurance companies, medical profession and census bureau don't. Sure hope I live to be 86 like the IRS thinks I will. It's a nifty way to keep more money in their hands and out of mine!
Taxes and Your Federal Employee Retirement
Human Resources Specialist US Postal Service Wed Feb 6, 2008 12:18 PM
I agree that the computation in Mr. Grobe's article, however, I disagree in part, due to the fact that the IRS sees it the way Mr. Grobe describes it, however, OPM views it as every dollar they pay out comes out of your contribution. So as soon as you've collected as much as you paid in, there's no balance due your heirs. (excepting a spousal, of course)
Re: Taxes and Your Federal Employee Retirement
John Grobe Federal Career Experts Wed Feb 6, 2008 3:06 PM
Yes, the IRS and OPM look at how you recover your contributions totally differently.
Taxes and Federal Retirement.
Retiree Former IRS Wed Feb 6, 2008 3:51 PM
If the spouse passes first and then the retiree how is the unused contribution distributed? I thought it when to the estate. Also what did you mean, it's a tax deduction on the final return?
Re: Taxes and Federal Retirement.
John Grobe Federal Career Experts Thu Feb 7, 2008 5:50 PM
If the spouse passes first, the retiree may contact OPM and be restored to a full annuity. The retiree continues recouping his/her contributions based on their life expectancy.
If any unrecouped contributions remain after the retiree and spouse have both died, those contributions are a miscellaneous itemized deduction (not subject to the 2% floor) on the decedants final tax return. The effect of this is that the "estate" gets the benefit of the unrecouped contributions.
How each state taxes
Frontline Manager FAA Thu Feb 7, 2008 9:47 AM
Went to the NARFE website looking for the reference to how each state taxes our annuities but could not find the page. Do I have to be a member to access this info?
Re: How each state taxes
Retired USPS Mon Feb 11, 2008 9:54 AM
NARFE membership is required to access certain areas of their website. An extremely informative and member serving organization for active and retired Federal employees.
Question
air traffic controller FAA Thu Feb 7, 2008 6:39 PM
If the retiree elects no survivor annuity, does the surviving spouse receive a tax reduction for the unused portion of the retirement contributions when the retiree dies?
Retirement Scenario
Director, Risk, IMS, CRM Department of the Navy, PEOEIS, NMCI Thu Feb 28, 2008 2:06 PM
Would you please do an example of a FERS employee's annuity? I believe that is is far more complicated and less remunerative.
RETIREMENT TAX
MS. DFAS Tue Mar 4, 2008 1:03 PM
does the 1099 show the part that is taxable?
FERS
Public Relations Analyst USPS Wed Sep 24, 2008 8:57 AM
Would you please take a look at FERS and prepare an article that talks about that retirement plan. It would be helpful as CSRS it not the only plan and there are many in FERS that are reaching retirement. Thanks much!
One of my "pet peeves" lies with the table in this article. The amount of monthly annuity derived from a retiree's own contributions to the CSRS is an illusion designed to make it appear retirees do not contribute a large part to our own retirement. The fact is that if one invested the $64,000 in contributions over the years of employment and this amount (and interest) was compounded over those years, it would amount to much more. OPM makes no allowance for what the Government earns on the portion of our salary that we contribute through our working life.
Question about FERS employees
treasury dept.
Wed Feb 6, 2008 9:21 AM
Your article gives a CSRS retiree example for taxation of annuity benefits. Does it affect a FERS retiree in the same manner? Thanks.
Re: Question about FERS employees
Federal Career Experts
Wed Feb 6, 2008 3:03 PM
TSP Withdrawal
DA
Wed Feb 6, 2008 9:41 AM
I think I know the answer already and that is why I am crying. Last year I took an over 62 withdrawal from my TSP account and even the 20% withholding does not cover mt tax when the withdrawal was added to my salary. I have to pay tax on both full amounts, right?
Taxable Annuity
Veterans Affairs
Wed Feb 6, 2008 10:03 AM
Does the IRS use actuarial tales in determining life expectancy or just use 360 months for everybody? Do they use 360 months for the 57 year old retiree AND for the 67 year old retiree?
Re: Taxable Annuity
Federal Career Experts
Wed Feb 6, 2008 3:04 PM
FERS, Social Security and TSP
DHHS
Wed Feb 6, 2008 10:15 AM
For those of us under FERS, how does contributions from private sector employment figure into the final annuity - is it one payment only or one from FERS and one from Social Security - I know I am optimistic. Similarly, how does the amount of your FERS/SocSec annuity factors with the TSP - will TSP be taxed and given in installments?
Re: FERS, Social Security and TSP
Federal Career Experts
Wed Feb 6, 2008 3:08 PM
IRS life expectancy estimates
USDA
Wed Feb 6, 2008 11:31 AM
I wonder what the IRS knows that the insurance companies, medical profession and census bureau don't. Sure hope I live to be 86 like the IRS thinks I will. It's a nifty way to keep more money in their hands and out of mine!
Taxes and Your Federal Employee Retirement
US Postal Service
Wed Feb 6, 2008 12:18 PM
I agree that the computation in Mr. Grobe's article, however, I disagree in part, due to the fact that the IRS sees it the way Mr. Grobe describes it, however, OPM views it as every dollar they pay out comes out of your contribution. So as soon as you've collected as much as you paid in, there's no balance due your heirs. (excepting a spousal, of course)
Re: Taxes and Your Federal Employee Retirement
Federal Career Experts
Wed Feb 6, 2008 3:06 PM
Taxes and Federal Retirement.
Former IRS
Wed Feb 6, 2008 3:51 PM
If the spouse passes first and then the retiree how is the unused contribution distributed? I thought it when to the estate. Also what did you mean, it's a tax deduction on the final return?
Re: Taxes and Federal Retirement.
Federal Career Experts
Thu Feb 7, 2008 5:50 PM
If any unrecouped contributions remain after the retiree and spouse have both died, those contributions are a miscellaneous itemized deduction (not subject to the 2% floor) on the decedants final tax return. The effect of this is that the "estate" gets the benefit of the unrecouped contributions.
How each state taxes
FAA
Thu Feb 7, 2008 9:47 AM
Went to the NARFE website looking for the reference to how each state taxes our annuities but could not find the page. Do I have to be a member to access this info?
Re: How each state taxes
USPS
Mon Feb 11, 2008 9:54 AM
Question
FAA
Thu Feb 7, 2008 6:39 PM
If the retiree elects no survivor annuity, does the surviving spouse receive a tax reduction for the unused portion of the retirement contributions when the retiree dies?
Retirement Scenario
Department of the Navy, PEOEIS, NMCI
Thu Feb 28, 2008 2:06 PM
Would you please do an example of a FERS employee's annuity? I believe that is is far more complicated and less remunerative.
RETIREMENT TAX
DFAS
Tue Mar 4, 2008 1:03 PM
does the 1099 show the part that is taxable?
FERS
USPS
Wed Sep 24, 2008 8:57 AM
Would you please take a look at FERS and prepare an article that talks about that retirement plan. It would be helpful as CSRS it not the only plan and there are many in FERS that are reaching retirement. Thanks much!
Deceptive Numbers
Defense Contract Management
Wed Sep 24, 2008 1:01 PM
One of my "pet peeves" lies with the table in this article. The amount of monthly annuity derived from a retiree's own contributions to the CSRS is an illusion designed to make it appear retirees do not contribute a large part to our own retirement. The fact is that if one invested the $64,000 in contributions over the years of employment and this amount (and interest) was compounded over those years, it would amount to much more. OPM makes no allowance for what the Government earns on the portion of our salary that we contribute through our working life.