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Retirement Planning


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Stupified  
#1 Posted : Friday, January 06, 2017 4:55:15 PM(UTC)

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Probably more of a tax question than anything, but maybe somebody here has some ideas on how to proceed.

Took a partial withdrawl from TSP and of course the 20% was with held. I'm in a 0 Tax bracket and have been for years, so I'll get it all back. But since the dispersal was this year, it may mean I won't see that 20% until I file in '18.

Does anybody know of a way I can get all or part of that 20% before then?

Raoul  
#2 Posted : Friday, January 06, 2017 5:08:50 PM(UTC)

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Originally Posted by: Stupified Go to Quoted Post
... I'm in a 0 Tax bracket and have been for years, so I'll get it all back. ...

So, are you saying you have 0 Federal tax withheld from your monthly pension?

Retired July 2011
Stupified  
#3 Posted : Friday, January 06, 2017 5:31:02 PM(UTC)

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FERS pension hasn't started yet. State pension has no with holding.

Raoul  
#4 Posted : Friday, January 06, 2017 5:41:05 PM(UTC)

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So nothing that comes thru your front door is subject to tax withholding?
I was going to suggest that you reduce Federal withholding wherever you can to offset the 20% of your TSP that was seized for 2017.

But if you don't pay tax on anything at all......... HEY! Wait a minute! Is this Donald Trump?
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SD Analyst on 1/9/2017(UTC)
lbridges  
#5 Posted : Friday, January 06, 2017 5:54:41 PM(UTC)
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You could specify some minimum withholding on the FERS pension part, i.e., claim married with XX dependents. That would gain you back some bucks in 2017 (assuming your pension starts in '17). Then change tax withholds back to a "normal" deduction for 2018.

Stupified  
#6 Posted : Friday, January 06, 2017 6:00:56 PM(UTC)

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FERS won't start until '19

Nothing has witholding due to the 0 tax bracket. I can't even do the EIC.

I know you can do Income Averaging to reduce tax in some cases, but that's mostly ion past years. I'm just wondering if there's any way to get an 'advance refund' for lack of a better term for that 20% that I'll get back anyways.

Raoul  
#7 Posted : Friday, January 06, 2017 6:29:11 PM(UTC)

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TSP is firm on the 20% withhold.

The only way I know around it is to offset the effect by reducing withholding elsewhere.
But if you have no other tax avenue where you can reduce withholding, you are stuck and will have to wait until you file.

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Stupified  
#8 Posted : Saturday, January 07, 2017 3:42:58 PM(UTC)

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With a tax code as tall as a skyscraper, there MUST be a loophole I can use to get this 20% refunded earlier than next February.

postalvet  
#9 Posted : Saturday, January 07, 2017 4:54:27 PM(UTC)
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Originally Posted by: Stupified Go to Quoted Post
With a tax code as tall as a skyscraper, there MUST be a loophole I can use to get this 20% refunded earlier than next February.



then contact a CPA or a tax person.

cause there is probably not one here.
Postal employee (retired) 38 yrs who helps even if some do not believe me! I was a Steward, officer & trouble maker. Just Sayin'
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Viking  
#10 Posted : Sunday, January 08, 2017 7:19:45 AM(UTC)

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You could have used TSP-70

Use TSP-73 for monthly putting the money in a ROTH

Pay the IRS tax quarterly
Guts  
#11 Posted : Friday, January 13, 2017 10:17:31 PM(UTC)

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LOL!!! You don't want to wait for a refund on LAST YEARS taxes, like the rest of us! You want an advanced refund on THIS YEARS TAXES!!! Yeah, this must be the Donald!

If you planned for the withdrawal to take affect for the end of 2016, but it was somehow delayed, man, that IS a bummer.

Edited by user Friday, January 13, 2017 10:29:49 PM(UTC)  | Reason: Not specified

TANSTAAFL
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