Tax Form Questions
Many clients are calling with questions about tax forms 1099-R and 5498. Remember, this is not accounting advice and we are unable to provide accounting advice but here is a quick overview of the forms. What you need to do with the forms: ✅ Check form 1099-R Box 7 for correct distribution type. If Box 7 says Code G, and Box 4 is blank or “0”, you were not taxed and did not pay taxes on this account. This simply means you made a non-taxable rollover from one retirement account (TSP) to your new retirement account (IRA). ✅ Provide […]
Maintaining Mental Health During Furlough
Furloughs can be challenging times, bringing uncertainty and stress. However, with the right strategies, you can safeguard your mental health and emerge stronger. Stay Connected with Loved Ones Isolation can exacerbate stress. Make an effort to stay connected with friends and family through video calls, group chats, or social media. Establish a Routine Create a daily schedule that includes regular wake-up times, meals, and activities. A consistent routine offers stability and helps maintain a sense of normalcy. Focus on Personal Development Use this time as an opportunity to learn new skills or pursue hobbies. Consider online courses, reading, or […]
Don’t Get Spooked by Market Myths
Unmasking Financial Fear This Halloween As Halloween approaches, the truly spine-chilling stories for many are those about the financial markets. Rather than being frightened by financial spectres, let’s bust those investing myths that haunt so many of us. Myth: “I Don’t Have Enough Money to Invest.” You don’t need a fortune to plant the seeds of financial growth. Small, regular contributions can compound significantly over time. It’s more important to start early and develop a habit of investing rather than waiting for the “perfect” moment. Myth: “This is a No-Risk Investment.” Every investment carries some degree of risk. Offers […]
Fall Into Smart Financial Habits: Set the Foundation for a Prosperous 2026
Fall presents a perfect opportunity to pause, reassess, and establish good financial practices. A proactive mindset this season can help you close out the year strong and lay the groundwork for a prosperous 2026. Schedule a Year-End Financial Review Before the year wraps up, plan a meeting with your financial advisor to optimize tax efficiency and refine your financial strategy. Automate Savings Set up automatic transfers to your savings or investment accounts for consistency in building your savings and capitalizing on compound growth. Revisit Your Budget Conduct a thorough review of your budget, evaluate your income and outgoings, and […]
Planning Ahead: 4 Key Financial Moves Before Year-End
As we approach the end of the year, it’s the perfect opportunity to seize control of your financial planning. Here are four smart strategies to improve your financial well-being before December 31st. 1. Maximize Retirement Contributions For 2025, contribution limits stand at $23,500 for 401(k)s, with an additional $7,500 if you’re over 50, and $7,000 for traditional or Roth IRAs, plus a $1,000 catch-up if over 50. 2. Explore Roth IRA Conversions Roth IRA conversions present an excellent strategy for those in a lower tax bracket. Converting a traditional IRA to a Roth can offer tax-free growth and tax-free […]
Life Insurance: Your Last Gift to Your Loved Ones
September marks Life Insurance Awareness Month. It’s essential to view life insurance as a proactive strategy in building long-term financial wellness, rather than just a safeguard against tragedy. Wealth Protection and Income Replacement According to LIMRA, 44% of U.S. households would face financial hardship within six months of the primary wage earner’s passing, and 25% would struggle within just one month. Facilitating Estate Planning Life insurance proceeds can help heirs cover estate taxes and other expenses, preventing the need to liquidate valuable assets. Handling Debt with Ease Life insurance policies can be used to manage and clear off existing […]
Mastering Your Federal Benefits: FEGLI, FEHB, and Medicare Integration
Federal employees enjoy a robust benefits package, including life insurance (FEGLI), health benefits (FEHB), and eligibility for Medicare. Understanding and properly integrating these benefits into your retirement plan can significantly enhance your financial security and healthcare coverage. Navigating FEGLI Federal Employees’ Group Life Insurance (FEGLI) provides essential coverage during employment, but its role during retirement requires careful consideration. Optimizing FEHB Coverage Federal Employees Health Benefits (FEHB) can continue into retirement. Choosing the right FEHB plan involves assessing premiums, coverage options, and potential out-of-pocket costs. Integrating Medicare with FEHB Understanding how Medicare Parts A, B, C, and D interact with […]
Thrift Savings Plan (TSP): Strategic Steps for Federal Employees
Your Thrift Savings Plan (TSP) is a cornerstone of your retirement strategy as a federal employee. Effectively managing your TSP involves more than just regular contributions. Understanding Your TSP Options The TSP offers five individual funds and various lifecycle (L) funds. Each fund has unique characteristics, risks, and potential returns. Maximizing TSP Contributions For 2024, the annual contribution limit for federal employees is $23,000, with an additional catch-up allowance of $7,500 for those aged 50 and above. Withdrawal Strategies Withdrawal options include lump sums, monthly payments, or annuities. Strategic withdrawals should consider your income needs, tax brackets, and overall […]
Understanding Your FERS Retirement Benefits: A Complete Guide
Navigating your Federal Employees Retirement System (FERS) benefits can seem daunting, but it doesn’t have to be. At Federal Retirement Authority, we simplify the complexities so you can retire confidently. What is FERS? FERS is the retirement system for U.S. federal civilian employees, established in 1986. It combines three components: Basic Benefit Plan (pension), Social Security, and Thrift Savings Plan (TSP). Calculating Your Pension Your FERS pension calculation depends on your years of service, age at retirement, and highest three years of salary. Maximizing Your Pension Benefits Consider the timing of your retirement carefully. Factors like service years and […]
What’s the Job Market Look Like for 2025 Graduates?
It’s graduation season — a time of celebration and new beginnings. While some graduates have jobs lined up, many others are navigating job searches anxiously. More than 60% of companies reported that they’re growing, and 40.8% of employers plan to increase salaries for bachelor’s degree graduates. Moreover, 52% of employers plan to offer signing bonuses this year, the highest level since 2019. Major vs. GPA When asked which majors employers are looking for, 51% said they hire across multiple majors. However, grades do matter — 47% of hiring managers say they’ll screen by GPA, up from 38% in 2024. […]