In this episode, Ed Zurndorfer joins Dan Sipe to explain how the IRS taxes federal government pensions for CSRS and FERS employees.
FedLife Podcast (Ep. 94): How the IRS Taxes FERS and CSRS Annuities
When employees retire, they receive an annuity statement that shows the commencing date, the annuity starting date, the gross monthly rate of the annuity benefit, and the total contributions made to the CSRS or FERS retirement and disability funds. If you need some clarity, you’re not the only one. Luckily, in this episode, Ed Zurndorfer joins Dan Sipe to explain how the IRS taxes federal government pensions for CSRS and FERS employees. Ed outlines the percentage of an employee's after-tax salary contributed to the retirement system while detailing essential terms related to retirees, such as the annuity statement, gross monthly rate, and annuitant's cost in retirement.
- The differences between CSRS and FERS retirement systems and how much an employee contributes to their respective retirement systems on an after-tax basis
- Must-know rules for CSRS/CSRS offset and FERS retirees
- The Simplified Method and its role in calculating the taxable amount of CSRS or FERS annuity payments
- A breakdown of the retiree monthly annuity payments
- And more!
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“Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Lee, Sipe & Associates, Inc. is not a registered broker/dealer and is independent of Raymond James. Content represents the opinions of the speaker and not necessarily those of Raymond James. Important Disclosure Information: http://raymondjames.com/smicd.htm.