Q. I am a Defense Department FERS civilian. There’s a chance that where I am may offer a voluntary early retirement with an incentive of up to $25,000. If I decide to do an early retirement and receive up to $25,000, can I add that money onto my annuity?

A. No. It’s treated no differently than a cash award and, for tax purposes, is treated the same as regular income.


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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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