Q & A
I am totally and permanently disabled by the VA due to service-connected disabilities. Can I withdraw some of my TSP without the 10 percent penalty? I’ve done some research and all I can find is the 10 percent penalty does not apply to people with total and permanent disabilities, but all the literature implies this rating comes from the Social Security Administration.
Answer: The TSP does not levy the penalty. You must convince the IRS that you meet the disability exemption requirement. You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental…
What would happen to FERS retirees if Social Security defaults? I heard rumors that the CSRS folks will still get paid, but the FERS people will not. Another rumor is that the government can take your TSP G-Fund money, but not the other funds. What should federal employees be doing for such a scenario?
Answer: The rumors you’re hearing are silly. Ignore them. Your FERS annuity payments are not dependent upon Social Security for funding, so I would expect that only your Social Security payment would be affected. If you’re concerned about the reliability of…
What are some of the documents Social Security will accept as proof of identity for a child?
Answer: While you can use a birth certificate to prove age or citizenship, you cannot use it as proof of identity. Social Security needs evidence of the child’s existence after birth. An acceptable document must show your child’s name, identifying information,…
My income is very low. Why is Medicare telling me I should pay a higher premium?
Complete Question: Merry Christmas to me! Medicare just sent me a letter that says my income is so high, I need to pay a higher premium. That does not make any sense. I retired in 2013, so my income is…
I am receiving a CSRS pension since 2005 obtained under a VERA/VSIP authority. I have recently become disabled and I am considering SSDI. I have enough quarters but not 30 years. Will this affect my CSRS pension? I am 58 years old.
Answer: If you were approved for SSDI, it would have no affect on your CSRS annuity. Source: militaryonline, via federaltimes.com, 11/10/2014 Notice: The link provided above connects readers to the full content of the posted article and/or external information sources. The…
I am a legal resident alien, working full time and paying Social Security taxes on my earnings. Will I be able to receive Social Security benefits at retirement?
Answer: Yes, assuming you work long enough and meet all usual requirements. United States citizenship is not required to receive Social Security benefits. Your future retirement, or payment of any Social Security benefits through your work record, will be based largely…
I filed for my Social Security benefits, but I wish I didn’t. Now what?
Complete Question: I filed for my Social Security retirement benefits at the age of 62, which gave me reduced benefits. So I decided I would be better off working until my full retirement age and realized it was a mistake…
If I elect to “file and suspend,” must by benefits be re-paid?
Full Question: I will be 66 at the end of this month. I will receive my first Social Security check in January. I’m single, never married. When I went to Social Security to sign up, I asked if I could suspend…
How do you report possible Social Security Fraud?
Full Question: Someone I know receives Social Security disability and is working part-time. How can this be looked at without me providing my name? Answer: Social Security takes potential fraud very seriously. I will write about that in a moment but first…
How are Social Security annual increases calculated?
Answer: Some topics are a lot more controversial than others. But I was amazed when my October 1, 2014, article that correctly predicted next year’s 1.7% cost-of-living adjustment for Social Security benefits several weeks before the official announcement triggered more than…