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, 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
Nealy asks a question that we see every now and then from federal employees: “Should you collect unemployment while you’re waiting on your Federal Employee Retirement System (FERS) pension
https://youtu.be/uFdTV3a4-XA “Hi, I have a question regarding Roth TSP which I have not gotten a clear answer on. I will be 54 this year. I plan on retiring at 62
I am aware that after I put in ten years’ federal civilian creditable service and then retire, my FERS annuity will be reduced monthly by 10% for the surviving spouse
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.
