I don't think you can retire while on leave so you have to come back for your last day.
If you take rather than "cash out" your leave you are correct that you will get the TSP match and earn leave as well.
You will also get credit for additional days of service but in computing your annuity, they also add in the sick leave days but they will round down to the month (any sick leave days remaining will be forfeited). There's an OPM chart they use to convert sick leave hours to days.
You will pay taxes on money received regardless.
From: TSPStrategy@groups.io <TSPStrategy@groups.io> On Behalf Of Ardon Kharpuri Mukhim via groups.io
Sent: Saturday, February 25, 2023 2:52 PM
To: TSPStrategy@groups.io; MD2018 via groups.io <rlkane.wc=verizon.net@groups.io>
Subject: Re: [TSPStrategy] When to Leave to Get Paid the Most for Your Leave
If you take the lump sum...isn't the taxes going to be higher?
Sounds like it's better to take the AL.
You still get paid your regular salary when you take AL; you earn your 8 hours of AL ; and you get your tsp contribution and match.
On Sat, Feb 25, 2023 at 11:40 AM, MD2018 via groups.io
<rlkane.wc=verizon.net@groups.io> wrote:
Well if you don't take annual leave your last year you could get paid for 448 hours of leave in cash. For some people depending on your pay rate that could be close to $30,000. And considering you might have earned the 240 carryover at a much lower rate.
On Feb 25, 2023, at 10:21 AM, Dave in Dallas <datruedave+GroupsIO@gmail.com> wrote:
Selling your annual leave back obviously gives you a chunk of change that helps tide you over until your retirement checks start rolling in regularly, but is there some other benefit that I'm not thinking of?
Seems to me that if you don't need that money (because you have other savings to tap into) to help with the transition to retirement, that actually using your leave prior to retiring is worth more if you just consider the numbers. Not only do you get paid your full salary for those days of leave, but they would also count as additional days of service that is computed towards your retirement even though you're already enjoying a sort of pre-retirement.
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