”I have gotten conflicting information about my lump sum annual leave. I plan on retiring on 12/31/21. I know that I will get my lump sum A/L payment a few weeks into 2022. Will the IRS count this as income for the tax year 2021 or 2022?
Also, will taxes on the lump sum A/L be deducted the same way as my regular income or will there be a single 20% deduction as with traditional TSP withdrawals following retirement?” – Geoffrey
If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you.
Annual leave: A payment for accrued annual leave received on retirement is a salary payment. It is taxable as wages in the year you receive it.
What is deducted from my lump sum annual leave payment?
Generally, a lump-sum payment will equal the pay the employee would have received had he or she remained employed until expiration of the period covered by the annual leave.
For example:
“Greetings, I am retired from the Army after 20 years as a Staff Sergeant. I am currently a GS 14 with 11 years under FERS. When I retire do I
“How do I know when it’s worth it to withdraw (refund) my FERS contribution when I leave the Fed workforce? if I have less than 10 years but meet the
“Hello, I am a vested former federal employee with the Naval Shipyard. I left federal employment in 2007 with 7+ years of service and am currently age 59. I am
“I am a 35-year USPS employee and am planning on retiring this year. I am 58. I have heard about the backlog of retirement applications that OPM gets at the
Get the most out of your federal retirement benefits by taking advantage of the FERS resources created by Micah Shilanski, CFP®, and the team of independent financial advisors at Shilanski & Associates, Inc. Join the thousands of federal employees who trust us to guide them in their retirement planning journey because of our unique perspective of how your FERS benefits contribute to your comprehensive financial plan.
Year after year I see Federal Employees missing the same critical concepts in their federal retirement planning. That’s why I’ve created an online workshop to help educate Federal Employees on these critical concepts.
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7 CLASSIC RETIREMENT MISTAKES Federal Employees Make
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7 CLASSIC RETIREMENT MISTAKES Federal Employees Make
Your privacy is our top priority, and we promise to keep your email safe! For more information, please see our privacy policy.
