[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]Here is some excellent financial information for current and former federal workers; these are in no particular order but are good to know:
1. Last month, the TSP returns were quite good, but the same cannot be said for the bond fund returns. The G fund had a .14 percent return; the F fund had a negative .54 percent return; the C fund had a 1.87 percent return; the S fund was at a 1.06 percent return; the I fund had the best rate at 2.87 percent.
2. Traditional TSP investments lower your modified adjusted gross income (MAGI) and adjusted gross income (AGI). It is recommended to bring down your AGI as low as you can as the Internal Revenue Service takes your AGI as the baseline in their calculations for income tax. They use MAGI to decide qualifications on IRA, deductions for some fees, and educational costs as well.
3. You are not able to make contributions to a traditional IRA once you are 70.5 years of age. For Roth, you can continue to make contributions as long as you continue to work regardless of age. You can contribute to your TSP plan as well without age limitations.
- Â Married spouses can receive Social Security benefits calculated from their own history of earnings, or they can select to get up to 50 percent of the amount that their other half is qualified for at full retirement maturity. The second option may be chosen if there is a big difference between their benefits.
5. For those that do not know your FICO (credit score) is calculated: 10 percent is based on new credit; another 10 percent is based on credit mixture; 15 percent is based on the lifespan of your credit history; 30 percent is based on your utilization of credit; another 30 percent is based off your payment record.
6. If you are a single taxpayer, then you can gift up to $15,000 a year or $30,000 if you are a married couple without facing taxes on the amount gifted.
7. For those that are still considering retiring at the end of the yeat, a significant advantage is that your accrued leave is paid with the following year’s cost of living adjustment.
8. The COLA (Cost of Living Adjustment) for 2020 will be at 1.6 percent.
9. The OPM (Office of Personnel Management) has released the rates for FEHB (Federal Employees Health Benefits) plan for next year. Participants will pay around a 5.6 percent increase in their premiums in 2020.Â
10. Since the 1st of October, FAFSA has been open to apply for student aid, grants, and loans.
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