Posted by: WiseMark Tags: Norwalk CT | Categories: Federal Retirement Benefits
Taxable Federal Retirement Benefits
When evaluating future expenses, consider your federal benefits taxes Norwalk CT. As a federal employee facing retirement, you want to know your projected retirement income will cover all the bases. You may have already considered cost of living increases. Have you thought about the level of retirement taxes you can expect to pay? Federal Retirement Benefits Center can help.
If you find your federal employee benefits confusing, you are not alone. Many people just don't understand how their federal retirement benefits will be taxed. Unless you have a clear understanding about your tax burden in retirement, how can you prepare for life after retirement? Your federal retirement pension is indeed taxable. Your employee contributions will be available to you tax free, since taxes were paid when they were taken out of your paycheck.
However, employee contributions are amortized, or stretched out over your life expectancy. Your CSRS or FERS Pension will be taxed at ordinary income tax rates. Your Thrift Savings Plan (TSP) offers both Roth and Traditional options. When you make pre-tax contributions into a traditional 401K, you pay tax on withdrawals. With a Roth option, you contribute post-tax income and you would not pay tax on withdrawals.
Planning for Retirement
If you are planning for retirement, you must take a proactive approach toward your benefits. We offer a free personalized and detailed Benefits Analysis Report. Our report is a written blueprint that includes an evaluation of your cash flow and living expenses, benefits and retirement finances, both before and after you retire. This report is compiled using information that we gather from you.
When you need help, turn to the helpful staff at Federal Retirement Benefits Center. Call today: 844-533-3372