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Federal employee elective deferrals are the amounts that an employee asks an employer to deduct from his or her salary and contribute to a defined contribution plan sponsored by the employer. Defined contribution plans include 401(k) and 403(b) plans and the Thrift Savings Plan (TSP). Note that IRAs and defined benefit plans such as CSRS and FERS annuities and military … [Read more...] about Federal Employees Should Check W-2 Forms for Elective Deferrals in 2020

This column discusses the suggested best dates to retire for CSRS and FERS employees  during 2021, 2022, 2023, and 2024. Before presenting the best dates to retire during these years, it is important to review some retirement rules and issues affecting employees covered by the Civil Service Retirement System (CSRS) (including CSRS Offset employees) and affecting employees … [Read more...] about Best Dates to Retire for FERS and CSRS: 2021, 2022, 2023 and 2024

President Trump issued an executive order Thursday finalizing the 2021 federal employee pay raise of 1 percent. The across-the-board increase does not include a change in locality pay. The pay adjustment is the same figure President Trump originally proposed in February 2020.   In 2020, ederal civilians received an average 3.1 percent pay increase.  Members of the military … [Read more...] about 2021 Federal Pay Raise Finalized in Executive Order

NOTE:  The information provided below is directly from the IRS and discusses the “EIP 2” (which is generally $600 for singles and $1,200 for married couples filing a joint return).  At the time of this writing a $2,000 Economic Impact Payment is being debated by Congress but has not yet been passed into legislation. ) The Internal Revenue Service (IRS) announced Tuesday it … [Read more...] about IRS Begins Delivering Second Round of Stimulus Payments

In accordance with President Trump’s memorandum dated Aug. 8, 2020, Treasury Secretary Mnuchin directed that between Sept. 1, 2020 and Dec. 31, 2020, eligible federal employees will have the portion of their Social Security (FICA) payroll taxes (equal to 6.2 percent of the employee’s wages) deferred. A federal employee’s agency would pay its portion of the FICA payroll tax … [Read more...] about Many Federal Employees Need to Pay Back Deferred Payroll Taxes Starting January 2021