Ask The Experts: Retirement

By Reg Jones

Tax on survivor benefit

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Q. Is the 10 percent FERS survivor benefit reduction pretax or post-tax? In other words, if your FERS benefit is $50,000 and the spouse reduction is $5,000, is your pension income reported to the Internal Revenue Service as $50,000 or $45,000?

A. You are only taxed on what you receive, not on what you would have received.

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