Federal employees earning $125k+ have a complex retirement picture — pension, TSP, Social Security, FEHB, and taxes all working together or working against you. We map it all into one coordinated plan.
Your HR office told you about your pension. Nobody told you about everything else.
Your TSP has 5 funds and a mandatory annuity structure that may not serve you in retirement. With no Roth conversion capability inside TSP and RMDs starting at 73, every dollar sitting in traditional TSP is a future tax liability stacking on top of your pension income.
TSP Rollover Guide →The average FERS pension replaces only 30–45% of pre-retirement income. Most federal employees discover this too late to do anything about it. A coordinated TSP distribution strategy and income plan can close the gap — but only if built before you retire.
Calculate Your Gap →Pension income plus TSP RMDs plus Social Security can push you into a higher bracket at 73 than you were in during your working years — and trigger IRMAA Medicare surcharges on top. The window to fix this is before you retire, not after.
Roth Conversion Strategy →Most advisors look at one piece of your retirement. We look at all five — and build a strategy that makes them work together to maximize income, minimize taxes, and protect what you've spent a career earning.
Pension timing analysis, High-3 optimization, survivor benefit election, income gap mapping.
Learn More →In-service rollover at 59½, IRA comparison, fund allocation review, distribution planning.
Learn More →Phased conversion strategy, bracket management, IRMAA avoidance, RMD reduction.
Learn More →FEHB in retirement, Medicare coordination, Part B enrollment timing, premium cost analysis.
Learn More →FEGLI cost analysis at retirement, private coverage comparison, permanent life alternatives.
Learn More →How to read your PBS and SF-50, retirement application process, common mistakes to avoid.
Read the Guide →You become eligible for an in-service TSP withdrawal — you can roll TSP funds to an IRA with no penalty, no taxes, and without leaving federal service.
Inside an IRA you can access Roth conversion strategies, fixed indexed annuities with guaranteed income, and a full investment universe TSP can't offer.
The Roth conversion window — the gap between retirement and RMD age when your bracket may be lower. Converting now eliminates future RMDs and protects against tax law changes.
We are licensed in the states with the highest federal employee concentrations in the country — from the DC metro corridor to the Pacific Coast.
Not seeing your state? Contact us — we may still be able to help depending on your situation.
Every federal employee's situation is different. Your pension, TSP balance, retirement timeline, and tax situation all interact in ways that a calculator can't fully capture. Let's talk through your specific numbers together.
Licensed in 22 states · FERS specialists
The questions we hear most from federal employees planning their retirement.
Ask Us Your Question →Yes — at age 59½ you become eligible for an in-service withdrawal from TSP. You can roll those funds directly to an IRA without penalty and without separating from federal service. This is one of the most underutilized planning opportunities available to federal employees.
The standard formula is 1% × High-3 Average Salary × Years of Service. If you retire at age 62 or older with 20+ years, the multiplier increases to 1.1%. For example: $130,000 High-3 × 25 years × 1.1% = $35,750/year ($2,979/month).
If you meet the 5-year continuous enrollment requirement, keeping FEHB in retirement is usually the right call. OPM continues to pay ~72% of your premium — the same as during active service. FEHB also provides a backup to Medicare that most retirees find valuable, particularly for dental, vision, and out-of-pocket caps.
The FERS Special Retirement Supplement is paid to employees who retire before age 62 with an immediate, unreduced pension (typically MRA+30 or age 60+20). It approximates the Social Security benefit earned during FERS service and continues until age 62. Formula: (Years of FERS Service ÷ 40) × Estimated Social Security at 62.
After rolling TSP to a Traditional IRA, you can convert portions to a Roth IRA each year. The converted amount is taxable income in the year of conversion. The strategy is to convert enough each year to fill your current tax bracket without jumping into the next one — especially in the gap between retirement and RMD age (73) when your income may be lower.
The Survivor Benefit Plan (SBP) provides a lifetime annuity to your surviving spouse equal to 55% of your pension. Full SBP costs approximately 6.5% of the pension amount above a threshold — roughly $200–$400/month for most federal employees. Whether it makes more sense than private life insurance depends on your health, age, and pension amount. This is one of the most important — and irreversible — elections you make at retirement.
IRMAA (Income-Related Monthly Adjustment Amount) is a Medicare surcharge applied to Part B and Part D premiums when your income exceeds certain thresholds. For 2024, IRMAA kicks in at $103,000 for single filers and $206,000 for married filing jointly. Federal retirees with pension + TSP RMDs + Social Security often find themselves in IRMAA territory — which is why Roth conversion before retirement is so valuable.
With a FERS pension providing guaranteed base income, many federal employees have flexibility to delay Social Security past 62 — earning 8% per year in increased benefits until age 70. The right claiming age depends on your health, cash flow needs, spousal situation, and whether the FERS Supplement bridges the gap. There is no universal answer, but delaying often maximizes lifetime income for healthy employees.
A free 30-minute Federal Retirement Review with our team. We'll look at your pension, TSP, taxes, and protection layer together — and show you exactly where the gaps are.
30 minutes · No cost · No obligation · Licensed in 22 states