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- The 2014 Big Picture on Cyber Security
- AFCEA Answers
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- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
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- Maximizing ROI Through Data Center Consolidation
- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- The New Generation of Database
- Reimagining the Next Generation of Government
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Air Traffic Management Transformation Report
- Cloud First Report
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- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
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- The Next Generation Cyber Security Experts
Shows & Panels
Fed haven for mad money
Wednesday - 4/4/2012, 2:00am EDT
If you are a long-time fed and you've hit the lottery, just inherited a bundle of money or have cash parked in a bank account that is is paying zip for interest you may want to study up on the Voluntary Contributions program.
The VC is a good deal for some people. It is not the Thrift Savings Plan.
The VC is open only to federal workers who are under the Civil Service Retirement System and CSRS offset. Unlike the TSP, which you fund via payroll deduction with pre-tax dollars, the VC is after-tax dollars. It operates like a government bank account or super-CD. You open an account and contribute, at your pace, via check. In increments of $25 or more.
With your VC account, you can put an amount equal to 10 percent of your lifetime federal earnings into the TSP.
Since the money you put in was already taxed, you pay tax only on the interest earned. In the past — during times of high inflation — the VC has paid double-digits in some years. Currently the rate (for all of 2012) is 2.25 percent.
The Treasury will set the 2013 rate late this year.
The VC is not a bank account. You can only make one withdrawal. It is designed to be taken out slightly before you retire, or used to boost (slightly) your total annuity. Advantages of the program include:
- The interest rate (2.25 percent this year) is better than most other places.
- It is a good place to stash cash you don't otherwise need.
- It can be used as a vehicle to contribute to a traditional IRA, or Roth IRA. Those contributions are limited to between $5,000 and $6,000 a year.
For more on the VC program, and other investment options for workers under the FERS retirement program, listen to our Your Turn radio show today at 10 a.m. EST. Tammy will be our guest and explain how the investment systems work and who they work best for. You can listen on your computer at www.federalnewsradio.com Or if you are in the DC area near a radio you can also hear us at 1500 AM. Listen up. It could be well worth your while.
NEARLY USELESS FACTOID
By Jack Moore
According to Life's Little Mysteries, "pre-mastication" — when parents pre-chew adult food for their babies — not only has a basis in pre-Gerber history, but also is healthy. "The act exposes infants to their mothers' saliva, giving them an immune system boost that they can't get from the sterile, pulverized baby food bought in stores," according to the site.
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