[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]When it comes to federal retirement planning, there are many factors to consider. And, handling it all at once can be overwhelming. After all, you’re about to end your federal career and taking care of other things to boot. Talk about mental overload.
However, there are a few things you can do ahead of time to keep your head above water:
Look at the Designation of Beneficial Forms
Before to look at the different beneficiary forms –; SF 1152, Designation of Beneficiary–Unpaid Compensation of Deceased Civilian Employee); Designation of Beneficiary (SF 2808 for CSRS, SF 3102 for FERS SF 2823); Designation of Beneficiary, Federal Employees’ Group Life Insurance (FEGLI) and TSP 3, Designation of Beneficiary – that must be filled out to designate where your death benefits go.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
Look at The Civilian and Military Deposits and Civilian Redeposits
If you had no retirement deductions withheld because you were a temporary employee or if you were a rehired federal employee that took a refund before, or if you were serving in the military where you did not make a deposit, you may need to make a deposit or redeposit to get retirement credit for the service.
An agency benefits counselor can determine the annuity estimate for you if you must make a deposit or redeposit. If a redeposit is owed for a refunded service, you need to reach out to the OPM to attain the amount before a benefits counselor can help you.
Review Your Survivor Benefits Options
One part of retirement planning is looking at the benefits you’d leave your spouse if they survive y9ou. If married, you can choose to give your spouse the full amount, which is 55 percent of the total annuity base under FERS.
You should also take into consideration court orders regarding the annuity. For a spouse to have FERS benefit coverage, you must choose a survivor annuity. This benefit may be given to your spouse to be entitled to the Federal Long-Term Care Insurance Program after you have died.
Realize What Your Options are for Health and Life Insurance
You can take your health and life insurance into your retirement if you’re insured on your retirement date, on an immediate annuity and have been covered for the last five years of service before your retirement date or since you were able to enroll.
If entitled to health insurance, the coverage immediately goes into your retirement without any- extra forms needing to be filled out. If you refuse to carry your health insurance into retirement, you’ll need to fill out a form SF 2809 that will cancel your coverage. If you can continue your life insurance through retirement, you’ll need to fill out the form SF 2818.
Look at Your TSP Withdrawal Options
Up to a year before your retirement, you need to consider that your Thrift Savings Plan withdrawal options are. You could take an annuity, lump-sum payment, get equal monthly installments or a combination of these.
Keep in mind that you probably don’t need to make a choice immediately, but you do need to have an account set up to consider the possibilities until after you turn 70 1/2. Keep in mind that a retiree can shift money through the funds, but you cannot take out a loan or add additional money in.
By doing these things, you’re preparing for your retirement before you’re even ready to ready.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”34596″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
