Q. I have just been notified that I am eligible for the Voluntary Early Retirement Authority being offered by my agency. I am 57 and have 23 years of service. I have “roughed” my special retirement supplement to $700 a month, and the FERS annuity would be $1,400 a month, for a total of approximately $2,100 a month. What amount would be taxable (federal and Social Security), and what would the taxes be, assuming that would be my only income?
A. To find out what your federal tax would be, go to www.irs.gov/pub/irs-pdf/p721.pdf and read the Tax Guide to Civil Service Retirement Benefits. Once you’ve discovered how much of your retirement income will be taxable, you can check with your state to find out how they would treat it.