Dan and Katelyn discuss how recent tax law changes affect federal retirement planning and what federal employees should understand before taking a hardship withdrawal from their TSP.
Katelyn explains how the One Big Beautiful Bill Act (OBBBA) extended several provisions from the Tax Cuts and Jobs Act (TCJA), removing the expected tax bracket increases many retirees were planning for in 2026. She discusses what this means for federal retiree tax planning, including decisions around Roth vs. Traditional contributions, the timing of Roth conversions, and how to coordinate withdrawals with pensions, Social Security, and required minimum distributions.
Dan follows by explaining how TSP hardship withdrawals work and the long-term impact they can have on retirement savings. He reviews the eligibility requirements, tax implications, and potential penalties that may apply. He also discusses practical steps federal employees can take to rebuild their TSP after a withdrawal, including increasing contributions, rebuilding an emergency fund, and reviewing investment allocations to get their retirement plan back on track.
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The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
