When you plan for retirement from federal service, you have several big decisions to make. In addition to planning your income from your FERS pension and TSP distributions, you also need to make sure your healthcare is covered. As a federal retiree, you have two excellent health insurance plans that will work together to cover your needs: FEHB and Medicare.  Both work together, but depending on your age and employment status, one will be your primary and the other your secondary coverage. Here’s what you need to know. When You’re Under 65: FEHB Coverage During Retirement  Federal Emp ..read more

The Federal Employee Retirement System (FERS) provides an excellent pension for government employees, and it’s generally considered the top benefit of working in public service. Your pension even has the potential to outlive you and continue to cover your surviving spouse—but only if you navigate the survivor benefits correctly. Knowing how it all works is a crucial part of financial and estate planning for federal employees. Here’s what you need to know. What Is the FERS Survivor Annuity? The FERS survivor annuity is the continuation of pension payments to your surviving spouse after your dea ..read more

Planning for retirement as a federal employee seems like it would be simple: just collect your pension and enjoy, right? While that may be possible for some, the reality for most people is that their pension will only cover a fraction of their income needs when they retire. Successful retirement planning means making the most of a complex collection of benefits and investments to make sure you have enough to live the way you want to. If your pension won’t cover all of your income needs, it’s time to figure out how to bridge the gap using your other investments. So what’s the best way to do tha ..read more

Did you know that as a federal employee, you have access to two tax-advantaged accounts to help cover the costs of your medical care?  It’s true! Federal employees can choose to open a Flexible Spending Account (FSA) and/or a Health Savings Account (HSA). These two accounts are often confused, but it’s important to understand the differences to make the most of your benefit—and not accidentally lose any of your hard-earned money. Here’s what you need to know. What Is an FSA? An FSA is a special account set up for you by your employer. When you choose to open one, you designate contributio ..read more

It’s that time of year again! Whether you like to get your taxes done quickly because you expect a refund or you cringe at the thought of all the paperwork, it’s important to know what you’re getting into. There are several changes hidden in your taxes this year, from a standard deduction boost to new contribution limits for retirement accounts and more. Here’s what you need to know to make sure you’re ready to file for 2022—and a few tips for maximizing your tax savings for the coming year.   What’s New? If you’ve been feeling the pinch of inflation, there’s at least a little bit of ..read more

With the new year comes a few important changes to the TSP—and understanding them will help you maximize your savings. Here’s what you need to know. New TSP Contribution Limits Because the TSP is a tax-advantaged retirement account, there are limits to how much you can contribute each year—the government still wants you to pay some taxes, after all! The good news is that the amount you can contribute has increased for 2023: Annual Elective Deferral: $22,500 Catch-up Contributions: $7,500 Your annual elective deferral is the total amount you can contribute to your TSP for the year. This numbe ..read more

Financial planning is a life-long endeavor, and there’s more to it and then just retirement. You also need to take into consideration your health and your quality of life. As people live longer, that means planning for many more years of life — years that could potentially be spent in decline. No one likes to think of losing their independence, but most people will, at some point, require long-term care. These services can be in-home care provided by family, visiting nurses, or other caregivers, or these services can be provided by part- and full-time assisted living facilities.  Long-ter ..read more

Federal employees have a whole raft of benefits that touch on everything from retirement savings and pensions to health, life and long term care insurance. But what happens to those benefits when you die? No one likes to think about death, but it’s crucial that you know how your benefits will be distributed to your surviving spouse or children. If you plan carefully, you can leave loved ones a gift of lasting security. Here’s what federal employees need to know about survivor benefits for spouses and children. Thrift Savings Plan The Thrift Savings Plan (TSP) is a defined contribution retireme ..read more

One of the biggest expenses in your life is federal income tax. Sure, writing the check for the payment on your home is a major milestone, but most people will end up paying far more than that in taxes over the course of a lifetime. And yet, you’re probably not paying as much as you think. You read that correctly! One of the biggest misconceptions people have about their taxes surrounds their tax rates and how they work. And this misunderstanding leads most people to think they owe more than they actually do. The trouble comes from a complex tax code that uses tax margins to tax different leve ..read more

A raise is always good news, but what can you do right now to ensure that you make the most of it? Try these ideas to stay mindful with your money in the new year. Increase Your TSP Contributions When’s the last time you looked at your TSP contributions? Getting a raise is the perfect time to review these amounts — and bump them up to take advantage of your extra income. If you currently have no trouble making ends meet, consider putting your entire raise into your TSP. Raises have a tendency to disappear into thin air, with a latte here or a new pair of shoes there. Directing the funds into y ..read more