Disability annuities

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Q. I am 61 years old and have 30+ years as a CSRS employee. If I received disability benefits on retirement, are they tax-free?

A. Disability annuities aren’t tax-free. They are considered to be ordinary income. FYI: Because you have at least 22 years of service, there wouldn’t be any difference between the amount of a disability annuity you’d receive and what you’d get in a regular retirement annuity.

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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 fedexperts@federaltimes.com.

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