A Closer Look at 2025 FEHB Premiums

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A Closer Look at 2025 FEHB Premiums

Open Season is just a few weeks away, and costs are increasing this year. What does that mean for federal employees?

Federal employees and retirees should expect to pay much more for health coverage next year: the enrollee share of FEHB premiums is going up 13.5% on average, which is almost double from last year. OPM cites price hikes from providers and suppliers, more prescription drug usage, and behavioral health spending as the principal drivers for this increase. Follow link to read more from Government Executive. https://bit.ly/4dEyP6K

How the Fed’s Interest Rate Cut Could Affect Military Families

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How the Fed’s Interest Rate Cut Could Affect Military Families

Marine Corps Gunnery Sgt. Patrick Dooley, assigned to the 12th Marine Corps District, tours Broadway Pier with his daughter during Fleet Week San Diego 2023.

As a military retiree and a financial planner, I’ve seen firsthand how the unique challenges faced by the military community amplify changes in the economy and U.S. government policy.

On Sept. 18, the Federal Reserve implemented a larger-than-expected, 50-basis-point (0.5%) interest rate cut, and while many may view this through a broad economic lens, I want to take a moment to look at how this affects military families, in particular. Follow link to read more. https://bit.ly/3N7omG4

The 2024 Presidential Debate

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The 2024 Presidential Debate

During last night’s debate, both candidates talked about their economic ideas, but neither laid out a plan for how they would pay for their proposals or how to tackle our $35 trillion national debt.

With interest costs on the debt on track to reach historic highs over the next decade, America’s fiscal future is a critical issue for our next president. As interest rises, it crowds out important public and private investments that can fuel economic growth. We already spend more on interest than on Medicaid or veterans’ benefits, and this fiscal year was the first in which interest costs surpassed what we spent on defense. Follow link to read more from The Peter G. Peterson Foundation. https://bit.ly/3zgEEsU

 

The Class Of 2024 is Applying to More Government Jobs, Says College Networking Website

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The Class Of 2024 is Applying to More Government Jobs, Says College Networking Website

Handshake’s report says more college graduates are applying to government jobs, as hiring slows in technology and professional services.

The class of 2024 is applying to more government jobs, according to a report released this month by a popular networking website for college students.

In total, roughly 7.4% of job applications from this year’s college graduating class on the website Handshake were sent for government openings. In comparison, that number for the class of 2023 was 5.5%. Follow link to read more. https://bit.ly/3WC7zRv

 

Which is Better? A Roth IRA or Roth TSP?

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Which is Better? A Roth IRA or Roth TSP?

By Carol Schmidlin

Both are tax free, however there are some differences.

How much can you put in a Roth IRA? In 2024 you can contribute $7,000 and if you are turning 50 in 2024 you can contribute $8,000. However, a Roth IRA has phase out limits based on your modified adjusted gross income (MAGI). If you are married filing jointly, they are $230,000 – $240,000. If filing single the phase out limits are $146,000 – $161,000.

You can convert $23,000 and if you are turning 50m in 2024 you can contribute a total of $30,500.

If your income is over the limit to contribute to a Roth IRA, you may be eligible for a Back-door Roth IRA. Anyone that has earned income can contribute to an IRA, then convert it to a Roth IRA. The caveat is if you have an IRA already, the new contribution will be prorated, and you will have to pay taxes. However, you can roll your IRA into TSP, then make your contribution to a traditional IRA and convert to a Roth IRA.

Here is an example of prorating:

Natalie has an IRA of $5,000 in after tax contributions.  She earns too much to contribute to a Roth IRA, so she decides she will do a Backdoor Roth IRA. Her non-Roth IRA balance is $80,000. That means 6.25% of her contributions are not taxable ($5,000 non-deductible amount/$80,000 (total non-Roth IRA balance). Follow link to read Carol’s full article. https://fedsavvy.com/wp-content/uploads/2024/04/What-is-Better-a-Roth-RSP-or-a-Roth-IRA-Revised.pdf