Most of us can agree that Roths are great. Whether it be your Roth TSP or a Roth IRA, these accounts provide tax-free income in retirement, the opportunity to limit the taxation of your Social Security benefits, and they don’t have Required Minimum Distributions – while this last one only applies to Roth IRAs. ButContinue reading “What Happens When Federal Employees Make Ineligible Roth IRA Contributions?”
Author Archives: Jose Armenta, MsBA, CFP®, ChFC®, CLU®, EA
The Backdoor Roth IRA: What Federal Employees Need To Know
A common question I get from highly motivated savers is whether they can contribute to their Roth TSP and a Roth IRA each year. And while having a TSP does not prevent you from having a Roth IRA, if your Modified Adjusted Gross Income (MAGI)* is too high, you will be ineligible to contribute toContinue reading “The Backdoor Roth IRA: What Federal Employees Need To Know”
3 Insurance Needs Federal Employees Should Review
As we kick off our new year, it’s important that we take the time to ensure we have adequate insurance coverage to protect ourselves and the ones we love. Part of this review process means not only looking at our life insurance needs but also our property and disability coverages as well. So, this weekContinue reading “3 Insurance Needs Federal Employees Should Review”
What Is The TSP Hardship Withdrawal?
Most federal employees are familiar with the rules for putting money into their Thrift Savings Plan but aren’t sure about taking money out. When thinking about the withdrawal rules for the TSP, it’s essential to differentiate between the rules while you’re a federal employee versus when you have separated from service. Withdrawals made while you’reContinue reading “What Is The TSP Hardship Withdrawal?”
Contributing To Your TSP After Separating From Federal Service
Sooner or later, you will separate from federal service, and whether you are called to retirement or the prospects of the private sector, you’ll have to decide what to do with your Thrift Savings Plan. While many federal employees will opt to transfer their TSP to an IRA, many will choose to keep their nestContinue reading “Contributing To Your TSP After Separating From Federal Service”
3 Early Retirement Options For Federal Employees
For some federal employees working until they’re eligible for the traditional FERS, retirement just isn’t in the cards. And while retiring after 20 or 30 years of uninterrupted service is usually uncomplicated, there is often confusion about what early retirement options are available. So, this week, we will review three early retirement options: postponed, deferred,Continue reading “3 Early Retirement Options For Federal Employees”
Should You Use Your TSP To Pay Off Your Mortgage?
As federal employees near retirement, many questions inevitably come up. One common question I am asked is, “should I use my TSP to pay off my mortgage?” And my answer almost always is, it depends. Though it might seem like a smart financial move, several factors should be considered before deciding to pay off yourContinue reading “Should You Use Your TSP To Pay Off Your Mortgage?”
3 Things Federal Employees Must Know About Social Security
Your FERS retirement benefits consist of three main components: The Basic FERS Retirement Pension, Social Security, and the Thrift Savings Plan (TSP). And while your FERS pension is one of the more unique parts of your retirement package, Social Security is an equally important benefit providing guaranteed income. Since Social Security is such an essentialContinue reading “3 Things Federal Employees Must Know About Social Security”
3 Critical Mistakes Federal Employees Make
As federal employees approach retirement, thoughts shift from worry over the workday grind to concerns about preparing for retirement. And while you will likely never starve due to your pension and Social Security, many mistakes can devastate your retirement, turning your vision of a fulfilling second chapter into a period of scarcity and fear. So,Continue reading “3 Critical Mistakes Federal Employees Make”
3 Reasons Why Federal Employees Should Hire A Financial Advisor
Personal finances can be complicated, especially when you’re a federal employee with a robust benefits package that includes a FERS pension, survivor benefits, the Thrift Savings Plan, and life insurance. And while OPM and your HR specialists provide plenty of information, the responsibility of integrating your federal benefits into a customized financial plan is yoursContinue reading “3 Reasons Why Federal Employees Should Hire A Financial Advisor”