VERA/VSIP

0

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.

Share.

About Author

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

Leave A Reply