Tax Strategy

Tax strategy, decoded.

There is no special federal tax break in retirement. The FERS pension is taxable, most of Social Security is taxable, and every Traditional TSP dollar is taxable. But the federal retirement tax picture is predictable — and predictable means plannable. Here’s the full guide, current to 2026.

New & Updated for 2026

The latest additions.

The numbers that anchor 2026

A few figures shape almost every federal retirement tax decision this year:

  • ~95% — the share of a typical FERS pension that is taxable at the federal level
  • Age 73 — when required minimum distributions begin for retirees born 1951–1959
  • $6,000 — the OBBBA senior deduction per person 65+, available 2025–2028
  • $109,000 / $218,000 — the 2026 IRMAA first threshold, single and married filing jointly
  • 13 — states where a federal retiree’s core retirement income faces no state income tax
Start Here: The Foundation

The anchor.

The Two Involuntary Cost Events

What arrives whether you plan or not.

The Strategic Counter-Move

The deliberate planning move.

The Separate State-Tax Layer

The layer the IRS rules don’t touch.

New · May 2026

The latest tax mechanics.

New · June 2026

Active tax moves.

Continue across the federal retirement picture

Tax strategy is one layer of the retirement plan. The TSP pillar covers contribution limits, fund choices, and withdrawals, the FERS & CSRS pillar covers pension calculation and retirement eligibility, and the Social Security pillar covers claiming strategy for federal employees.

Explore the TSP pillar →

The Tax Strategy pillar is complete — 5 articles

Coverage runs from how each income stream is taxed, through IRMAA and RMDs, to Roth conversions and the state-tax map. Deeper pieces on survivor-year tax changes and charitable strategy will be added as the site grows.