Federal Retirement Benefits are Taxable

Federal Retirement Pensions are Taxable

Many federal retirees forget that their federal retirement benefits are taxable. Planning for life after retirement begins by understanding your retirement benefits, how each benefit will be taxed, and what your net monthly income will be. As a federal employee facing retirement, do you know what retirement taxes can you expect to pay? What you don't know can impact your future.

If you find your federal employee benefits confusing, you are not alone. We are the Federal Retirement Benefits Center, and we explain your retirement benefits in an easy to understand format. Unless you have a clear understanding about your tax burden in retirement, how can you prepare for life after retirement?

At the Federal Retirement Benefits Center, you will find financial professionals and educators that will help you unravel your benefits package. Take a proactive approach to retirement planning with our experienced educators. With free educational workshops, seminars, webinars and individual meetings, we help you take a proactive approach to planning your financial future.

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.

The Federal Retirement Benefits Center offers a free personalized and detailed Benefits Analysis Report. This is a valuable written blueprint evaluates 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

Request a free benefits analysis report here.

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 Federal Retirement Benefits are Taxable | Federal Retirement Benefits Center