The Former Federal Employee’s Playbook for Returning to Work — Understanding the Financial Tradeoffs
Understanding the Financial Tradeoffs
Many former federal employees return to work in the private sector after retirement or separation — often earlier than expected.
While this can create new income opportunities, it also introduces complex decisions around retirement accounts, benefits, taxes, and long-term planning that are often overlooked.
This webinar is designed for former federal employees now working (or considering work) outside the federal system, helping you understand the financial considerations before making permanent changes.
What This Webinar Covers
TSP Decisions
Evaluating whether to keep your TSP, roll it to an IRA, or move it to a new employer’s 401(k)
Understanding potential tradeoffs, including:
- Withdrawal flexibility
- Roth conversion considerations
- Creditor protections and cost structure
Health Insurance Choices
- Comparing FEHB with private employer health plans
- Understanding long-term considerations of dropping FEHB
- How current decisions may affect Medicare coordination later
Tax Strategy Considerations
- How pension income combined with salary may impact tax brackets
- Roth conversion planning
- Awareness of future Medicare IRMAA exposure
Pension & Income Timing
- Coordinating earned income with pension and Social Security
- Evaluating pension start timing based on overall cash flow and goals
Social Security Considerations
- Planning around eligibility for the FERS Supplement
- Coordinating earned income with future claiming strategies
Additional Planning Areas Often Affected
Returning to work may also raise broader planning questions, including:
- Housing and relocation decisions
- Rent versus buy considerations in a new location
- Capital gains and transaction cost awareness
- Reassessing lifestyle goals and retirement timelines
Who This Is For
This guide is intended for:
- Former federal employees now working in the private sector
- Early retirees or separated employees evaluating a return to work
- Individuals managing pension income alongside new earned income
Why This Matters
Decisions made during this transition can have long-term implications across taxes, benefits, and retirement flexibility. Understanding the tradeoffs upfront can help support more informed planning conversations.
Who is Capital Financial Planners?
The world of retirement and investment planning can be overwhelming and full of generic advice. Our goal is to help you cut through the noise and gain clarity on your specific situation. With an in-depth understanding of federal employee benefits like FERS, CSRS, TSP, and Social Security, our independent advisors have the tools to prepare you for, and walk with you through retirement from the federal government or private sector employment.
