Financial success can easily be achieved; it only takes a little effort. Image: Tortoon/Shutterstock.com
As the 2022 year ends, Federal Employees and Retirees need to consider many decisions about their benefits, taxes and their Thrift Savings Plan. Open Season is the time to review your health insurance pertaining to the benefits that may be needed in the coming year such a new baby or required surgery. It may be necessary to change your policy in order to save money especially if your premium is going up next year. Here are seven thoughts that should be considered during open season and before 2022 ends.
1. FEHB decisions include, health, dental and vision plans. Saving on premiums with a lesser expensive plan or reducing from a family plan to self plus one plan.
2. TSP contributions for the following year. The maximum allowed by the IRS has increased for 2023 to 22,500 and for those over 50 years of age to 30,000.
3. TSP allocation. It may be a good time to reallocate your TSP funds if you have a desired percentage for each fund.
4. TSP investment mix. Do you need to be more or less aggressive with your TSP?
5. Annual Leave Use or Lose. Calculate leave so not to lose any annual leave over 240 hours and if you are a Postal employee, 560 hours.
6. Federal Spending Account. The 2023 FSA contribution is 3,050. Up 200 dollars from 2022.
7. W-4, Employee Withholding Certificate may require a change. If you have more than one job or your spouse is employed. You may not be paying enough taxes.
As a financial coach, many federal employees contact me relative to their retirement decisions. Each person has their own individual needs and fears. Many of these decisions can make the difference of hundreds and thousands of dollars in your retirement. Do not postpone tackling these topics. Retirement is different for everyone, and many factors need to be considered.
Financial success can easily be achieved; it only takes a little effort.
Abraham Grungold is a retired federal employee with 36 years of federal service, and through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 40 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.
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