An advocate of federal employee retirement planning, Missouri-based entrepreneur Tracy Wayne Mitchell is well-versed in governmental benefits. Therefore, Tracy Wayne Mitchell can advise clients about when it is best to elect distribution.
When federal employees separate from their job posts, the law permits them to make benefit withdrawals depending on their years of service or age. For example, people who leave the government by the time they reach 55 usually can withdraw monthly payments, or at least a portion of a payment, from their thrift savings plans (TSP). If they are 55 or older, they won’t incur a tax penalty.
Early-retiring employees who are part of the Federal Employee Retirement System (FERS) may also postpone distribution of retirement benefits in order to avoid a reduction. For example, if an employee has worked 10 years but fewer than 30 years (or 20 years if he is 60 to 61), he is allowed to put off receiving a payment. Exceptions apply to federal law enforcement employees or firefighters whose retirement age is younger than the federal minimum age of 62.
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