Retirement Planning
Retirement is a Big Step, We can help you get started
OPM
Preparing For Retirement
HR Shared Service Center (HRSSC)
HRSSC Hours of Operation: Monday – Friday, 7 a.m. ET – 8:30 p.m. ET
HRSSC 1-877-477-3273 Option 5
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F.A.Q.
2023 TAX Brackets
2023 Federal Income Tax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households
| Tax Rate | For Single Filers | For Married Individuals Filing Joint Returns | For Heads of Households |
|---|---|---|---|
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $15,700 |
| 12% | $11,000 to $44,725 | $22,000 to $89,450 | $15,700 to $59,850 |
| 22% | $44,725 to $95,375 | $89,450 to $190,750 | $59,850 to $95,350 |
| 24% | $95,375 to $182,100 | $190,750 to $364,200 | $95,350 to $182,100 |
| 32% | $182,100 to $231,250 | $364,200 to $462,500 | $182,100 to $231,250 |
| 35% | $231,250 to $578,125 | $462,500 to $693,750 | $231,250 to $578,100 |
| 37% | $578,125 or more | $693,750 or more | $578,100 or more |
| Source: Internal Revenue Service | |||
Standard Deduction and Personal Exemption
The standard deduction will increase by $900 for single filers and by $1,800 for joint filers.
The personal exemption for 2023 remains at $0 (eliminating the personal exemption was part of the Tax Cuts and Jobs Act of 2017 (TCJA).
| Filing Status | Deduction Amount |
|---|---|
| Single | $13,850 |
| Married Filing Jointly | $27,700 |
| Head of Household | $20,800 |
| Source: Internal Revenue Service. | |
TSP Retirement
How does TSP work when you retire?
Rules for age-59 ½ withdrawals
- You can only withdraw funds in which you are vested (i.e., funds you are entitled to keep) based on your years of service.
- The amount of your age-59 ½ withdrawal must be at least $1,000 or your entire vested account balance (even if it’s less than $1,000).
- You may only take up to four age-59 ½ withdrawals per calendar year. If you have two separate TSP accounts—a civilian TSP account and a uniformed services account—you can only make age-59 ½ withdrawals from the account associated with your active employment at the time of your withdrawal. However, if both of your accounts are associated with your active employment, you can make age-59 ½ withdrawals from each account.
Consequences of age-59 ½ withdrawals
When you make an age-59 ½ withdrawal, you must pay 20% federal income tax on the taxable portion of the withdrawal unless you’re able to roll it over to an IRA or an eligible employer plan.
The booklet Tax Rules about TSP Payments provides more information about the tax rules affecting age-59 ½ withdrawals.
Social Security in retirement
The Social Security Retirement benefit is a monthly check that replaces part of your income when you reduce your hours or stop working altogether. It may not replace all your income so it’s best to identify other ways to pay for your monthly expenses as you age.
See if you’re eligible
Eligibility is always based on work. Most jobs take Social Security taxes out of your paycheck so you can get a monthly benefit in retirement.
Plan for retirement
Estimate your benefit amount, determine when to apply, and explore other factors that may affect your retirement planning.
Get started with Medicare
Medicare is health insurance for people 65 or older. You may be eligible to get Medicare earlier if you have a disability, End-Stage Renal Disease (ESRD), or ALS (also called Lou Gehrig’s disease).
Some people get Medicare automatically, others have to actively sign up — it depends if you start getting retirement or disability benefits from Social Security before you turn 65.
How do I enroll in Medicare for the first time?
- Online (at Social Security) – It’s the easiest and fastest way to sign up and get any financial help you may need. …
- Call Social Security at 1-800-772-1213. …
- Contact your local Social Security office.