This “Drive-By” Planning Will Cost Retired Federal Employees Thousands
Retirement success hinges on smart tax planning and withdrawal strategies; small mistakes and “rules of thumb” can cost federal retirees significantly over time.
Taxes
Stay informed on tax rules and implications affecting federal employees and retirees, including guidance on taxes for FERS and CSRS annuities, Social Security taxation, TSP withdrawals, and retirement income planning. Explore updates on IRS regulations, withholding rules, state tax considerations, and policy changes that influence how federal retirement benefits are taxed. Find clear explanations and practical insights to help federal employees understand how different income sources are treated and how tax changes may impact their financial planning.
The IRS Interactive Tax Assistant: A Free Tool Federal Employees Should Know About
The IRS Interactive Tax Assistant helps federal employees answer common tax questions quickly with guided interviews but it has some known limitations.
For Federal Employees, Retirement Taxes Are About Location, Location, Location
Asset location in retirement is key. Where federal employees keep savings—tax-deferred, Roth, or taxable—can greatly impact taxes and flexibility later.
Why Roth Conversions Require a Different Playbook for Federal Widows with a FERS Pension
Federal widows with FERS and Social Security benefit most from small, strategic Roth conversions to avoid IRMAA and balance lifetime taxes.
The Real Costs and Benefits of Working After Federal Retirement
Working after federal retirement boosts income and purpose but can impact FERS, Social Security, Medicare premiums, and future tax obligations.
Smart Roth Conversions: How to Use Partial IRA, 401(k), or TSP Transfers for Tax-Efficient Retirement
Partial Roth conversions let you move IRA, 401(k), or TSP assets gradually, managing taxes, reducing RMDs, and building tax-free retirement income.
What Parts of a Federal Employee’s Retirement Income Are Taxed?
Federal employees will find that most of their retirement income is subject to taxes. Planning ahead helps reduce tax surprises in retirement.
Standard Deduction or Itemize? What Federal Employees Should Know for 2025
Federal employees: Don’t assume last year’s tax approach works in 2025—higher SALT caps mean itemizing could finally beat the standard deduction.
Avoiding the Tax Trap: What the Elimination of WEP and GPO Means for Your Income and Taxes
The 2025 Social Security Fairness Act removed WEP and GPO, boosting CSRS retirees’ benefits and income, but also created new tax and Medicare implications.
Mastering Roth Conversions: How Federal Employees Can Slash Retirement Taxes
Strategically utilizing Roth conversions is a way that federal employees can reduce their tax burden in retirement.
