The Fed15 Podcast | Ep. 152 Tax Diversification in Retirement + Planning for Long-Term Care Costs

Katelyn explains how a tax diversification strategy can help federal retirees manage taxes more effectively throughout retirement. She breaks down the three tax buckets—taxable, tax-deferred, and tax-free accounts—and discusses how using each strategically can help reduce tax liability, manage Medicare IRMAA surcharges, navigate Social Security taxation, and prepare for required minimum distributions (RMDs). She also shares practical considerations for building a flexible retirement income plan.

Dan covers the growing challenge of long-term care planning for federal retirees. He reviews current long-term care costs, discusses the status of the Federal Long Term Care Insurance Program (FLTCIP), and explains different ways retirees fund care, including self-insuring, private insurance options, and Medicaid. He also walks through how to estimate a personal long-term care funding gap, common planning mistakes, and steps federal employees can take now to better prepare for future care needs.