Federal retirees depend on their federal civil service annuity for much of their retirement income, but states facing financial problems may be looking to public sector pensions as a source of new revenue.
The majority of federal employees will not retire with a million dollars or more in their Thrift Savings Plan. However, the author notes that the potential exists for federal workers to generate retirement income equivalent to that of having a TSP portfolio of over $1 million using other benefits available to them.
After a massive influx of new retirement applications in January and February, OPM finally got a break in March and was able to make some headway on reducing the retirement claims backlog.
The author describes a retirement savings benefit outlined in the tax code that can dramatically boost one’s ability to save for retirement. What is the likelihood of this benefit also being made available to federal employees who invest in the Thrift Savings Plan?
The Internal Revenue Service said in a statement Monday that taxpayers who turned 70½ during 2015 must start receiving required minimum distributions (RMDs) in most cases from Individual Retirement Accounts (IRAs) and workplace retirement plans by Friday, April 1, 2016.