Reserve Retirement Year-End Checklist: 7 Things Federal Employees Must Lock In Before 2026

For federal employees and reservists, year-end isn’t a formality — it’s a closing window. The final weeks of 2025 may be your last opportunity to fix service records, optimize pension math, and position your TSP and taxes before rules, limits, and timelines reset in 2026.

Below is a federal-specific, results-oriented checklist designed to protect your retirement income and prevent costly, irreversible mistakes.

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1. Verify Your Retirement Coverage & Creditable Service

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Your retirement benefits are calculated strictly by records maintained through the Office of Personnel Management. If something is missing or incorrect, the system won’t “catch it later.”

Before year-end, confirm that:

• Your retirement system is correctly listed as Federal Employees Retirement System (FERS) or CSRS
  
  
• Your Service Computation Date (SCD) includes all eligible civilian, temporary, and creditable service
  
  
• Military service deposits or buybacks are fully paid and officially posted
  
  
• Reserve and active-duty time is correctly documented and applied
  
  

Why this matters:
Service errors can reduce your annuity, delay your retirement date, or force last-minute fixes when you have the least leverage.

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2. Maximize and Strategically Align Your TSP Contributions

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Your Thrift Savings Plan (TSP) is a cornerstone of your retirement income — but contribution strategy matters more than contribution amount alone.

Before December 31:

• Confirm you are receiving the full agency matching contribution
  
  
• Increase contributions up to annual and age-50+ catch-up limits, if possible
  
  
• Reassess Traditional vs Roth TSP contributions based on future pension and Social Security income
  
  
• Review your fund allocation to ensure it still matches your time horizon and risk tolerance
  
  

Federal insight:
Many federal employees unknowingly set themselves up for higher taxes in retirement by defaulting to Traditional TSP without considering pension-driven tax brackets.

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3. Pressure-Test Your FERS Annuity & High-3 Calculation

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Your High-3 average salary permanently determines your pension — and even small timing changes can have lifetime consequences.

Before year-end, evaluate:

• Whether locality pay, special salary rates, or premium pay are fully reflected
  
  
• If extending service by months (not years) could significantly increase lifetime annuity income
  
  
• How your planned retirement date affects your annuity formula and COLA eligibility
  
  

Key reality:
Once you separate, your High-3 and annuity calculations are locked forever; corrections afterward are rare and slow.

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4. Make Tax-Smart Roth Conversion Decisions

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Federal retirees often experience a tax pile-up: pension income, Social Security, TSP withdrawals, and Required Minimum Distributions all converge.

Before 2026, consider whether 2025 is a strategic year to:

• Execute partial Roth conversions while income is temporarily lower
  
  
• Reduce future RMD exposure and long-term tax risk
  
  
• Create tax-free income flexibility later in retirement
  
  

Important caution:
Roth conversions must be coordinated with your FERS annuity, filing status, and Medicare IRMAA thresholds — not done in isolation.

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5. Reassess FEHB, Medicare & Survivor Benefit Elections

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Healthcare and survivor decisions are among the most permanent choices federal employees make.

Before year-end, confirm that:

• Your FEHB plan still aligns with your retirement timeline and health needs
  
  
• You understand how FEHB coordinates with Medicare Parts A, B, and D
  
  
• Survivor benefit elections accurately reflect your spouse’s long-term income and healthcare needs
  
  

Why this matters:
Many of these elections cannot be changed once retirement begins.

6. Validate Beneficiaries & Estate Documents

Federal benefits follow beneficiary forms — not your will.

Before 2026, review and update:

• Beneficiaries on TSP, FEGLI, and retirement accounts
  
  
• Wills, powers of attorney, and healthcare directives
  
  
• Survivor benefit elections to ensure consistency with estate goals
  
  

Hard truth:
Outdated beneficiary designations override estate documents every time.

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7. Build a 2026-Forward Federal Retirement Income Plan

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Retirement success depends on income coordination, not just account balances.

Before year-end, outline:

• Pension commencement timing and net income expectations
  
  
• TSP withdrawal sequencing to manage taxes efficiently
  
  
• Social Security claiming strategy in relation to pension income
  
  
• A sustainable cash-flow plan that supports your lifestyle and inflation protection
  
  

Federal employees who plan income early experience fewer tax shocks and smoother transitions into retirement.

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Final Thoughts: Don’t Carry Uncertainty Into 2026

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For federal employees, retirement planning isn’t about reaching a single milestone — it’s about honoring decades of service by getting the details right. Most retirement challenges don’t come from dramatic market events; they come from quiet oversights: an uncorrected service record, a default TSP election that no longer fits, or a benefit decision made without understanding its long-term impact.

Year-end matters because it preserves choice. Choice to adjust course, reduce future risk, and lock in advantages while options are still open. As retirement draws closer, flexibility narrows — but clarity becomes even more valuable.

If you want a second set of experienced eyes on your plan, this is the right moment.
Consult with a Federal Pension Advisor to review your service record, pension strategy, TSP positioning, and retirement timeline before 2026 decisions become permanent.

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