Federal Pension Advice and Insights

May 18, 2026

Yes, federal retirement is generally taxable in 2026. FERS, the Federal Employees Retirement System, pensions are subject to federal income tax on the portion of each annuity payment that represents the government's contributions and accumulated earnings.

May 15, 2026

The federal retirement tax 2026 framework requires FERS retirees to pay ordinary federal income tax on their FERS annuity, traditional TSP withdrawals, and up to 85% of Social Security benefits. A small portion of each annuity payment representing previously taxed contributions is recovered tax-free under the IRS Simplified Method.

May 14, 2026

FERS retirement planning is the process of coordinating your three-part federal retirement income (the FERS basic annuity, the Thrift Savings Plan, and Social Security) so they pay out at the right ages, in the right order, and with the right tax treatment.

May 13, 2026

The choice between Roth TSP vs traditional TSP comes down to one question: do you want to pay taxes now or in retirement? Roth TSP contributions are made with after-tax dollars and grow tax-free.

May 12, 2026

State tax on federal pension 2026 rules vary widely. Some states don't tax federal pension income because they have no broad-based personal income tax, while others specifically exempt qualifying federal civil-service annuities.

May 11, 2026

The difference between a pension and a retirement plan is that a pension is one specific type of retirement plan, a defined benefit plan that provides a formula-based monthly income in retirement, funded primarily by the employer and subject to vesting, eligibility, and plan rules.

May 8, 2026

A retirement plan distribution is any payout of money from a tax-advantaged retirement account, such as a 401(k), IRA, or the TSP (Thrift Savings Plan), the federal government's tax-advantaged retirement savings program.

May 7, 2026

A retirement plan is a financial arrangement that lets workers set aside money during their working years so they have income after they stop working. Most retirement plans offer tax advantages, employer contributions, or both. They fall into two broad categories: defined benefit plans, which pay a guaranteed monthly amount, and defined contribution plans, which build a balance the worker draws from in retirement.

May 6, 2026

The Roth catch-up rule 2026 requires federal employees age 50 and older who earned more than $150,000 in FICA (Federal Insurance Contributions Act) wages from their employing agency in the prior calendar year to make all catch-up contributions to the TSP, or Thrift Savings Plan, the federal government's tax-advantaged retirement savings program, on a Roth (after-tax) basis rather than traditional pre-tax.

May 5, 2026

The G Fund vs C Fund TSP decision comes down to one trade-off: stability versus growth. The G Fund, or Government Securities Investment Fund, protects principal. The C Fund, or Common Stock Index Investment Fund, gives you exposure to large U.S. companies through the S&P 500.

May 4, 2026

A federal buyout may make sense if you're already eligible to retire, can keep FEHB and FEGLI into retirement, and have confirmed that the after-tax buyout is worth more than the income, benefits, and service credit you'd lose by leaving.

May 1, 2026

Yes, VERA (Voluntary Early Retirement Authority) retirees do qualify for the FERS annuity supplement, but it is deferred until they reach their MRA (Minimum Retirement Age), between 55 and 57 depending on birth year. Your FERS pension begins at retirement; the supplement does not follow until MRA, creating an income gap of up to seven years.