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ravensfan
02-10-2015, 10:21 AM
Interesting reading!

Taxes Federal Employees Will Face in Retirement : FedSmith.com (http://www.fedsmith.com/2015/01/13/taxes-federal-employees-will-face-in-retirement/?utm_source=daily-20150205&utm_medium=email&utm_term=headline-related&utm_content=html&utm_campaign=fedsmith-daily-newsletter)

felixthecat
02-10-2015, 10:31 AM
Interesting reading!

Taxes Federal Employees Will Face in Retirement : FedSmith.com (http://www.fedsmith.com/2015/01/13/taxes-federal-employees-will-face-in-retirement/?utm_source=daily-20150205&utm_medium=email&utm_term=headline-related&utm_content=html&utm_campaign=fedsmith-daily-newsletter)

Thanks for the post. I like to keep track of any tidbit which will help me focus on what I need to do before retiring, and of course what to expect when and after I retire.

Warrenlm
02-10-2015, 10:43 AM
An interesting nuance is the different way one's contributions are treated. A portion is included in the annuity each year and considered returned and thus taxfree. However, for purposes of the amount remaining in the account in the event of death of the annuitant, the contributions are considered fully withdrawn by the total annuity amount each month, leaving little for an heir after 18 months. If your account balance started at $150k or $200k, and initially it looked like a declining life insurance policy, it ain't. What changed from the old days rules was the decision to apportion the contributions over life expectancy. They left in place the policy of complete withdrawal at the beginning years of retirement.