As Trump Seeks To Reshape The Federal Workforce, Unions Blast His Schedule F Plan

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As Trump Seeks To Reshape The Federal Workforce, Unions Blast His Schedule F Plan

From meat inspectors to border patrol officers, many Americans who work for the federal government could soon see their jobs reclassified into at-will positions, meaning they can be dismissed for nearly any reason.

In a related development, the White House expects up to 10% of federal employees to quit in September in a program meant to end work-from-home practices, senior administration officials told CBS News. Follow link to read more from CBS News. https://www.cbsnews.com/news/donald-trump-executive-order-schedule-f-unions/

2025 Tax Season is Here: TSP, IRA Considerations for Contributions and RMDs

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2025 Tax Season is Here: TSP, IRA Considerations for Contributions and RMDs

You can fund a spouse’s IRA even if he or she had no earned income in the prior year, and take the deduction this year; less tax and more savings.  

One of the rules around Individual Retirement Arrangements (IRAs) is that one must have earned income to contribute to an IRA and that the contribution cannot exceed the amount of income one has earned, even if that level of income is below the annual contribution. For example, If I had $5,000 of earned income in 2024, I can’t contribute more than that amount to an IRA, even though the 2024 contribution limit is $7,000 (plus another $1,000 if over 50).

Some readers may have noticed that I used the present tense “is” when referring to last year’s limit. Why didn’t I say “was”? Follow link to read more from FEDweek. https://www.fedweek.com/tsp/2025-tax-season-is-here-tsp-ira-considerations-for-contributions-and-rmds/

 

TSP: Changes in 401(k) Plans Take Effect This Year

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TSP: Changes in 401(k) Plans Take Effect This Year

The changes in 401(k) plans that take effect this year can have implications for the Thrift Savings Plan (TSP) as well, since both are retirement savings vehicles. Here are a few potential impacts:

  • Contribution Limits: If the contribution limits for 401(k) plans increase, a similar adjustment may apply to the TSP, allowing participants to save more toward retirement.
  • Salary Deferral Changes: Enhancements to salary deferral options in 401(k) plans may encourage similar updates in TSP policies, potentially giving government employees more flexibility in how they contribute.
  • Employer Matching: Changes in employer matching contributions could prompt discussions about adjustments in TSP matching policies, impacting how much employees can receive from the government based on their contributions.
  • Withdrawal Rules: Any new rules related to withdrawals from 401(k) plans might influence decisions regarding withdrawal options available in the TSP.
  • Roth Option: If there are expansions in Roth 401(k) options, the TSP might consider similar offerings, allowing participants to make after-tax contributions.

It’s important for TSP participants to keep an eye on these changes and understand how they might affect their retirement planning. For specific details, checking the official TSP website or consulting a financial advisor can provide more tailored guidance.

 

OPM Officials Tout Agency’s Transformation Under Biden

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OPM Officials Tout Agency’s Transformation Under Biden
Leaders at the federal government’s dedicated HR agency said the organization has come a long way since being targeted for elimination by the first Trump administration.
Just six years removed from an unsuccessful bid to break up the federal government’s dedicated HR agency, officials at the Office of Personnel Management are touting the agency’s transformation during the Biden administration. Follow link to read more from Government Executive. https://www.govexec.com/…/opm-officials-tout…/402180/

This 401(K) Change Could Maximize Your Savings

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This 401(K) Change Could Maximize Your Savings

 Source: NewsNation 

  • New contribution limit for those 60 to 63 years old is $11,250
  • The 2025 change increased the limit by $3,750
  • If you exceed the contribution limit, you will be double-taxed

A change in 401(k) plans takes effect this year, which means some people who save in their retirement plans could maximize their savings.

The change — which applies to 401(k)s as well as 403(b)s, governmental 457(b) plans and the federal government’s Thrift Savings Plan — is a result of the Secure 2.0 tax law passed in 2022. It’s meant to give those who are approaching retirement age an opportunity to save more money. Follow link to read more. https://www.newsnationnow.com/business/your-money/contribution-limit-increase-401k/