As a federal employee facing retirement, what retirement taxes can you expect pay? 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
The Federal Retirement Benefits Center provides important information to federal employees. As financial professionals and educators, we will help you unravel your benefits package. We offer free educational workshops, seminars, webinars and individual meetings. 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