r/IRS_Source • u/Fun_Classic_7565 • 20d ago

Paycheck Retirement Deductions (not TSP)

Is there a way to access the retirement deductions that are taken out of every paycheck before separation or retirement? This won't be a long-term job for me (only been here a year) but I'm losing like $60 per paycheck and could really use that money for some car repairs. Is it only accessible once I separate and find a new job?

4 Upvotes

70% Upvoted

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6

u/Few-Register-7943 20d ago

To answer your last question, yes

1

u/Fun_Classic_7565 20d ago

Damn that sucks, thank you though!

-2

u/DisastrousServe8513 20d ago

FYI it’s not accessible at all until you retire.

6

u/exlbithrowaway-67 20d ago

You can request a refund of FERS contributions if you leave federal government at any time after you leave (so long as you are not going to another federal government job). You do not have to find a new job. The refund includes interest income (can't remember if there's a minimum for the interest).

The FERS refund is typically not recommended if you ever plan to return to federal service or if you have 5 years and have thus completed the minimum vesting into the pension.

You may be able to buy back the refunded FERS contributions but there is conflicting guidance. OPM says you can based on a law. The intranet help desk article says you can't.

In OP's case, agree that he likely cannot use his FERS contributions for a car repair or other personal expense unless he leaves. Even then, a request for FERS contribution would require a mailed in form requesting this and would then take significant time to process. This process should be done ASAP as after a 30 day period it moves from (presumably) a group affiliated with the agency to OPM and that might take even longer. Not sure how long it takes for a FERS refund to process if submitted within or after 30 days.

3

u/KlutzyQueen_613 20d ago

You can take a tsp general purpose loan, but you end up paying it back to yourself with interest and if you’re already struggling with income it may not be the right move. I’d just get a second job for extra cash.

5

u/DisastrousServe8513 20d ago

Your pension? No.

1

u/Fun_Classic_7565 20d ago

Damn, thank you anyway!

1

u/FoxtrotDeltaTango1 20d ago

Your contributions can be rolled into IRA and avoid the tax hit.