Health insurance premiums and taxes


 Q. I am a FERS employee with the Postal Service with over 30 years of service, including my military time. I am considering retiring in a year. After I retire, will my health insurance premium be taxable? Or is it pretax?

A. All federal employees are eligible to have their Federal Employees Health Benefits premiums paid with pretax dollars. With one exception, retirees aren’t. Section 845 of the Pension Protection Act of 2006 allows limited pretax payment of those premiums for retired public safety officers.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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