TSP does a lot of great things for federal employees while they are working, however the mechanics of TSP for retirees can cause issues. Check out more info on Should You Transfer Out of Thrift Savings Plan (TSP)? One of the major problems that can arise is related to estate planning with the Thrift Savings Plan. Federal employee’s family members can be left with a huge tax burden if proper planning is not in place. Did you know that a
As individuals navigate their retirement years, it becomes essential to understand the various factors that impact Medicare premiums, such as: earned income, self-employment income, investments, real estate, rental income, retirement withdrawals, Social Security, and pensions. In this article, we will explore the relationship between Medicare premiums and how Required Minimum Distributions (RMDs) can affect retirement income planning and healthcare costs. Required Minimum Distributions (RMDs) The age for RMDs has recently changed due to SECURE Act 2.0. The current age
Complete Guide to the Federal Employee Retirement System The following information is meant to be an exhaustive explanation of the FERS pension. The intention is to be a single resource when preparing for a federal retirement. The article is lengthy, we suggest reviewing our FERS page for a short summary. To easily reference a piece of information, use the dropdown on the table of contents. The following is covered: Pension Calculations Costs RSCD vs LSCD Eligibility and When to Retire Minimum
Adjusted Gross Income (AGI) vs Modified Adjusted Gross Income (MAGI) – How to Calculate and When to Use AGI or MAGI Adjusted Gross Income (AGI) and Modified Adjust Gross Income (MAGI) are important numbers when filing your taxes. Both AGI and MAGI must be known when determining allowable deductions, tax credits, and eligibility for retirement plans. Your taxes may even increase if your income is too high based on certain income limits. AGI may be used in certain situations
Mastering Your Finances: A Guide to the 20 Essential Financial Accounts for Informed Money Management Navigating the world of financial accounts can be overwhelming, with a myriad of options catering to various needs and goals. This article aims to simplify the 20 essential financial accounts, providing concise summaries for each to empower individuals in making informed financial decisions. Checking Account Primary transactional accounts for everyday expenses Generally low-interest rates, ideal for short-term liquidity Interest rates ~0.01% – 0.45%
The Impending Shortage: What You Need to Know About Social Security’s Shortfall by 2035 Administered by the Social Security Administration, Social Security has become a cornerstone of retirement income for countless Americans. The federal Social Security and Medicare program, the core of the Social Security Act, provides retirement benefits and health insurance to retired and disabled workers, and extends these benefits to their families and survivors. It’s hardly shocking to American lawmakers: Social Security is confronting a major hurdle with
2024 Annual Limits Relating to Financial Planning Below are the new annual limit changes for 2024. Please contact us here and we can provide the PDF of the tables included below. Notable Limit Changes IRA and Roth IRA Contribution limits increase from $6,500 to $7,000 Catch-up contribution unchanged at $1,000 IRA phaseout limit increases Single: $73,000-$83,000 to $77,000-$87,000 Joint: $116,000-$136,000 to $123,000-$143,000 Roth IRA phaseout limit increases Single: $138,000-$153,000 to $146,000-$161,000 Joint: $218,000-$228,000 to $230,000-$240,000 Retirement Plans – (401(k), TSP, 403(b),
SECURE 2.0 Changes to Thrift Savings Plan (TSP) Starting in January and into the Future Amidst the dynamic landscape of retirement planning, the SECURE 2.0 Act has emerged as a pivotal legislation, ushering in significant changes to the Thrift Savings Plan (TSP) and shaping the future of retirement savings. Understanding the implications of this legislation is paramount for Federal employees and every community gearing up for retirement. TSP has published the changes that will take effect in 2024. It was
2024 GS Pay Scale for Federal Employees The 2024 GS pay scales have been released. The 2024 GS pay scale includes a federal pay raise base of 4.7% and a locality pay increase of 0.5%. The overall average increase is 5.2%. Included below is the 2024 GS salary table and pay raise for each GS locality pay area. Salary Table 2024-GS Incorporating the 4.7% General Schedule Increase Effective January 2024 Grade Step 1 Step 2 Step 3 Step
Federal Employees: Select Your Beneficiaries OR They Will Be Chosen For You We often see beneficiaries are left unchanged since joining Federal service. Big life events such as marriage, divorce, children, or the death of a previously designated beneficiary could have happened during this time. Life changing events require a review of your beneficiaries on file so that your benefits are left to the person you wish. If not updated, benefits such as TSP, FEGLI, and retirement survivor benefits could
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