As a Federal Employee, how will the passing of the Tax Cuts and Job Act impact you?
This is a great time of year in which most FERS employees are thinking about Federal Income Taxes. However, what I find is that most people are busy thinking about LAST years taxes instead of taking a few moments, and addressing what they can do to prepare for their Federal Income Taxes, this year.
That is right, your 2018 federal income taxes.
With the passing of the Tax Cuts and Job Act in December of 2017, most individuals have an opportunity to save on their federal income taxes. You may have already experienced this with an increase in your paycheck recently.
One idea that you could consider is using the 50/50 strategy. One area that we work with clients on is applying the 50/50 strategy any time that they receive a pay raise.
50% of any increase in income, in most cases, should go to increase your lifestyle. Enjoy the extra income!
The remaining 50%, find ways to increase your savings and path towards financial freedom. As a FERS Employee if you are not maximizing your 401(k) Plan by contributing $18,500 each year (or, $24,500 if you are age 50+) this is a dynamic way to inch you closer to that goal.
This is a great time to review your W-4 withholdings to see if it makes sense to change them.
If you are anticipating tax savings in 2018, can you contribute more to your Thrift Savings Plans (TSP) or other investment accounts?
100% of the questions that we address in FERS Federal Fact Check come from Federal Employees.
If you have a question, let us know!
All questions remain anonymous.
“Hello Micah, I am so glad that I happened onto your website. I have read a lot of material and have watched a lot of podcasts. Because of your solid,
”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
“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
“First off, great content on your site! A plethora of information for Federal employees that is extremely invaluable for retirement planning. Regarding the FERS Supplement and VERA, does the supplement
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.
If you are a Financial Advisor looking to work with Federal Employees,
we are always looking for Advisors that want to deliver massive value to clients.
Advisory services offered through Shilanski & Associates, Inc., an Investment Adviser doing business as “Plan Your Federal Retirement”. Plan Your Federal Retirement is not employed by the United States Federal Government and does not represent the United States Federal Government. All content on this site if for information purposes only. This website is not personalized investment advice. Securities investing involves risks, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Please review our Customer Relationship Summary (Form ADV Part 3) for important information about our services and fees.
Opinions expressed herein are solely those of Shilanski & Associates, Incorporated, unless otherwise specifically cited. Material presented is believed to be from reliable sources, and no representations are made by our firm as to other parties, informational accuracy, or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant, or legal counsel prior to implementation.
Content provided herein is for informational purposes only and should not be used or construed as investment advice or recommendation regarding the purchase or sale of any security. There is no guarantee that any forward-looking statements or opinions provided will prove to be correct. Securities investing involves risk, including the potential loss of principle. There is no assurance that any investment plan or strategy will be successful.
