By Reg Jones
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.
Comments are closed.