I think only post Office employees are being required to take Medicare Part B, other Feds are not. I agree though, taking part B doesn’t make sense to me. IMO I think you get great coverage with FEHB insurance plan and at a reasonable rate! So why spend the money??!
Hey Haws! You're my retirement hero! I'm 45 with 26 years in and was offered VERA/VSIP when my org relocated, and I decided not to go. My TSP isn't where it should be, but I do have a decent sum that I want to make the right decisions about. I plan to leave government all together and in the process of starting my own business. Where should I roll my TSP into? Can I continue to pay into and grow it while self-employed?
I appreciate that! Yes, you can still grow your TSP. As for personal advice based on those circumstances, we would have to sit down and talk about it. Feel free to set up a meeting with me through the link in the description.
Just like Biggie said “mo money mo problems…” If things continue as planned my wife and I will have huge Medicare part B premium cost, especially once we begin taking contributions from our retirement. That’s before the tax implications. 😬😬😬😬
@@Seniormexico1968 it may seem counter intuitive on its face but health insurance companies are making it more attractive to join Medicare. Medicare becomes the primary and FEHB secondary. Blue cross basic for example works well with Medicare in that it will reimburse you $800 at the end of the year to help you with your Medicare part B cost. I believe this will be more prevalent in the future.
I see what your saying about keeping your withdrawl amount in line with certain tax brackets, but doesn't the TSP take 20% right off the top even if I stay under the 22% bracket or the 12% bracket? The light hasn't come on for me yet but I'll keep watching. Thank You for this information.
If Medicare part B cost is based on your income, and I currently have my modest OPM pension and enough savings to live on, I would do well to wait until 70 to apply for SS and wait as long as I can to take TSP withdrawals? My Medicare payments would be lower until 70 because my only declared income is my OPM. Does that sound right?
Great question. Here is a great resource when trying to see whether the money you receive, is counted towards "earnings": www.opm.gov/support/retirement/faq/fers-annuity-supplement-survey/
Great question. Here is a fantastic video about that: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-FVUMdKjDrfE.html&pp=ygUiaGF3cyBmZWRlcmFsIGJlc3Qgc3RhdGVzIHRvIHJldGlyZQ%3D%3D
If I pull all my money out of tsp I’ll go from 22 to 24 percent tax bracket. Should I do this to pay off my mortgage? Thanks for your advice. Also can I make withdrawals if I’m still a federal employee? I’m 56.5
Time to put pen to paper. There's no way to answer that question without running the numbers. Compare scenario 1 with scenario 2. Scenario one being withdrawing the TSP and paying off the mortgage. Yes there's the tax hit as your income from that year, from a tax perspective, has gone up. This is offset by not paying interest on the life of the mortgage. Then there's scenario 2 which has you withdrawing from TSP slowly over time, which has you paying less taxes, but is offset by paying all that interest in mortgage payments. The amount that the good offsets the bad is what should drive your decision, from a financial standpoint. A financial advisor should be able to answer your what if scenario if you provide him/her the numbers.
The difference between 12% and 22% is not ten percent! It is ten percentage points. The difference is actually an 83% increase in your marginal tax rate!
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