Financial success is easy to achieve. It takes very little effort. Image: Tortoon/Shutterstock.com
Abraham Grungold, AG Financial Services
At the end of 2022, federal employees and retirees will have many decisions to consider about benefits, taxes, and savings plans. Open season is the time to review health insurance related to benefits you may need in the coming year, such as newborns and required surgery. You may need to change your policies to save money, especially if premiums go up next year. Here are seven considerations to consider during the open season and before 2022 ends. increase.
1. FEHB decisions include health, dental and vision planning. Save on your premiums with a cheaper plan, or cut from a family plan to a Self Plus One plan.
2. TSP contributions for the following year. The limit allowed by the IRS has been raised to 22,500 in 2023, and he to 30,000 if he is over 50.
3. Assignment of TSPs. If each fund has the desired percentage, it may be a good time to reallocate TSP funds.
4. TSP investment mix. Should I be more or less aggressive with TSP?
5. Use or loss of annual leave. Calculate leave so that annual paid leave does not exceed his 240 hours, or 560 hours for postal workers.
6. Federal Expenditure Account. His FSA contribution for 2023 is $3,050. $200 up from 2022.
7. W-4, Employee withholding slip may need to be changed. If you have multiple jobs or if your spouse is employed. You may not have paid enough taxes.
As a financial coach, many federal employees contact me regarding retirement decisions. Each person has their own needs and fears. Many of these decisions can make a difference of hundreds or even thousands of dollars in your retirement benefits. Don’t put off tackling these topics. Retirement is different for everyone and many factors need to be considered.
Financial success is easy to achieve. It takes very little effort.
Abraham Grungold is a retired federal employee who has worked for the federal government for 36 years and, through his company AG Financial Services, assists federal employees with TSP and federal retirement planning and decisions. Mr. Grungold has authored more than 40 of his articles on the TSP and his FERS retirement and has been a guest on several podcasts for Federal News Radio and Government Executive Magazine.
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