Q. I am 56 years old with almost 35 years service. I am thinking about retiring in a few months. Is the federal income tax withheld, (in retirement) the same percentage taken out while working? I’m just working with some figures, so I’ll know how much my monthly check will be. What is the percentage in retirement?
A. According to OPM, “Generally, unless you specify a monthly withholding rate or amount, we withhold Federal income tax as if you are married and claiming three allowances. Use Service Online to start, change, or stop the Federal tax withheld from your annuity payment or specify the dollar amount withheld.” You’ll find that information and a federal tax withholding calculator at www.opm.gov/retire/annuity/tax/federalstate.asp.