jimbohoward69
Recycles dryer sheets
- Joined
- Feb 25, 2007
- Messages
- 70
Well, after being FIRE for over a year now, I've received a tentative job offer from a federal agency I've wanted to work at for years...which should turn into a final offer very soon. My 401k equivalent is the Thrift Savings Plan, which I contributed to during both my military career and my first run as a civil servant (2013-2019).
I've been going back-and-forth in my head as to how long I'd like to stay on (if I get the job obviously) before I officially, officially retire. Then, I came across the "Rule of 55", which states that if you separate/retire in the year in which you turn 55, you can start distributions from your TSP penalty free instead of having to wait until you're 59 1/2. I'll be 51 in May.
On the surface, it sounds pretty straight forward. However, I have scoured the internet and can't seem to find any info regarding how "breaks in service" are considered. I retired from the military in 2011, then took a two year hiatus until I became a civil servant in 2013. There will then be a 1.3 year gap between when I first left the fed gov until now.
Before I consult a tax attorney or CFP, I wanted to see if anyone here has dealt with a similar scenario? I just wonder if employment gaps are considered "separation/retirement" (therefore rendering the rule useless) or if it's just as simple as the rule states, regardless of past breaks in service.
I've been going back-and-forth in my head as to how long I'd like to stay on (if I get the job obviously) before I officially, officially retire. Then, I came across the "Rule of 55", which states that if you separate/retire in the year in which you turn 55, you can start distributions from your TSP penalty free instead of having to wait until you're 59 1/2. I'll be 51 in May.
On the surface, it sounds pretty straight forward. However, I have scoured the internet and can't seem to find any info regarding how "breaks in service" are considered. I retired from the military in 2011, then took a two year hiatus until I became a civil servant in 2013. There will then be a 1.3 year gap between when I first left the fed gov until now.
Before I consult a tax attorney or CFP, I wanted to see if anyone here has dealt with a similar scenario? I just wonder if employment gaps are considered "separation/retirement" (therefore rendering the rule useless) or if it's just as simple as the rule states, regardless of past breaks in service.
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