Special savings plan for CSRS types
Monday - 5/4/2015, 2:30am ET
Roughly two out of every 10 federal workers is eligible for a little-known savings perk that's hard to beat. How would you like the option to amass a separate tax-free retirement fund in addition to the CSRS annuity you will get when you retire from government?
What if Uncle Sam let you put the equivalent of 10 percent of your total lifetime federal salary into a special, super-safe interest- bearing account? The money you invested would be taxed. But once you took it out all of that money, plus any earnings from investment, would be all yours. Tax free. Like a Roth IRA but even safer because it is totally backed by the Treasury.
Also, you could put money in anytime you wanted, weekly, monthly, whenever as long as it is in increments of $25. So is this for real?
It is for real. True story:
A couple of summers back, I was waiting on the dock of the Alexandria (Va.) waterfront. I was waiting for my kids to join me for lunch. The dock was full of people, tourists and locals, who were gazing at the very wide Potomac River. You can see both D.C. and Maryland, and the infamous (for folks who fight Beltway traffic) Woodrow Wilson Bridge. People are watching boats, seagulls and other people.
Since I go there a lot (and my kids are sometimes late — always with good alibis), I noticed some other people who, like me, are regulars. One of them was a tall guy, late 50s, early 60s. He seemed to be watching me. Turns out he was.
He came over, asked if I was Mike Causey. Since he didn't look like anyone I ever played cards with, I said yes.
To cut to the chase, he said he wanted to say thanks. He had read a long-ago column about the VC program, had maxed out on it and it allowed him to retire years early. He looked relaxed. It's nice to hear things like that. So often in the news biz we deliver the bad stuff all the time.
But this is a wonderful program for some people if you are eligible. So check it out and see if it's right for you. Maybe you can retire early too, like the man on the dock.
For the rules-of-the-road regarding the VC program, click here.
If you are interested in signing up, here's the form.
Posted by: sarah_oz@yahoo.com
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