I am a retired Fed under FERS.
Just some things to keep in mind.
Your TSP is taxed as ordinary income.
Your health insurance is no longer pre-tax.
If you want to spouse to get health care after you are gone (and they
are not also a Fed) you must pick survivor benefits or they will not be
able to keep FEHB.
Survivor benefits are taken out before taxes so you get a little break
there.
You must be under a federal health plan for 5 years prior to retirement
which can be as a dependent even under tricare.
The basic Life insurance if you have it can be free after age 65 so it
is a nice thing to have for funeral etc...
You can see how much you will get in My Biz but keep in mind the FERS
social security supplement payable under age 62 is based on your actual
federal service not any military time or buy back. If you only have
federal time than it is easy to see if you bought back Military time
then the formula need to be adjusted. This is the formula total federal
time divided by the number 40 multiplied times your SSA estimate you get
every year(IE 30 years of service /40 is 75%). What some people forget
when they retire is with all your benefits you can end up in a higher
tax bracket with not as many deductions. I recommend younger people put
at least some of the TSP money into the Roth portion.
Also different states treat TSP, retirement income and SS differently.
I live in PA so as far as the state goes I have no taxes on any of my
retirement. I only have to worry about normal investment and interest
income.
Just some information to keep in the back of your head.
Posted by: Gary <tweet_pa@yahoo.com>
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