To calculate your retirement supplement, you need to be aware of your total years of creditable service and the Social Security benefits you would receive at age 62.
Similar to Social Security, your supplement may be reduced if you continue to work post-retirement and earn above the specified income threshold. For instance, in 2019, the income limit was $17,640. Earnings beyond this limit lead to a reduction in your supplement by $1 for every $2 earned over the limit.
Moreover, your supplement is taxable based on your total combined income. This includes earned income, your regular FERS pension, withdrawals from your TSP, investment returns, alimony, and other sources. For instance, if you are married and your combined income is between $32,000 and $44,000, 50% of your supplement is subject to federal income tax. If it exceeds $44,000, then 85% of your supplement is taxed.
Appointed Worldwide Holdings, LLC is not connected with or endorsed by the local, state, or federal government.
CONTACT US TODAY