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The 2026 FEHB & PSHB Open Season Selection Guide

Posted on Thursday, 6th November 2025 by

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Open season runs from November 10th through December 8th. Tools are available to evaluate provider options, select your 2025 plan, and submit changes to OPM.

Most FEHB plans will see benefit and rate changes for the upcoming year. Some plans are dropping out of the program, and others are changing their service areas or coverage options. Review your plan carefully.

FEHB Open Season

Comparing 2026 Healthcare Plans to their Medicare Advantage (MA) Option

Discontinued Plans

There are six FEHB plans (8 options) that will not be available in 2026:

  • NALC Health Benefit Plan CDHP
  • NALC Health Benefit Plan Standard
  • Health Alliance HMO Standard
  • AvMed Health Plan HDHP
  • AvMed Health Plan Standard
  • Independent Health High
  • Blue Care Network of Michigan High
  • Priority Health High

There is one PSHB plan (two options) that will not be available in 2026:

  • GEHA Indemnity Benefit Plan Elevate Plus
  • GEHA Indemnity Benefit Plan Elevate

Participants in those plans must select a new plan during Open Season, or they’ll be automatically transitioned into a designated default plan:

  • For FEHB, the default plan is GEHA Benefit Plan-High Option.
  • For PSHB, the default plan is Blue Cross and Blue Shield Service Benefit Plan – FEP Blue Focus.
  • In FEDVIP, the Health Partners Dental Plan will no longer be offered. Enrollees must select a new dental plan to maintain coverage in the 2026 Plan year.

Getting Started

Health, dental, and vision enrollment will automatically continue from year to year unless a participant chooses to make a change during Open Season. However, FSAFEDS requires re-enrollment each year for eligible employees who wish to continue participation in the next plan year.

With the advent of FEHB/PSHB-affiliated Medicare Advantage plans, there are many options to evaluate that may provide reduced costs for many. However, there are certain limitations with these plans that you must be aware of before enrolling.

Use the following resources to select your 2026 health care plans.




Obtain Copies of Plan Guides

   Active Employees

  • Request hard copies of desired plan brochures through your benefits coordinator. If you don’t know who that is, ask your supervisor.
  • Download plan brochures from the OPM website.
  • Request copies directly from plan providers. I typically request and receive brochures directly from GEHA and Blue Cross Blue Shield weeks before they are available on the OPM site.

   Annuitants (FEHB Retirees)

  • Sign up for FEHB Open Season Online – This site is devoted to federal annuitants. Request that healthcare plan brochures be mailed to your home address or downloaded to your computer. You must register to use this site, and annuitants can change enrollments online.
  • Download plan brochures from the OPM website.
  • Request copies directly from plan providers.

  PSHB (Employees & Annuitants)

Plan Premiums for 2026

Comparing Plans

How to Compare FEHB / PSHB Plans to their Medicare Advantage (MA) Option

Use OPM’s Health Care Comparison Tool and Consumers’ Checkbook 2026 Guide to FEHB Health Plans to find the best plan for your needs.

Checkbook’s Guide helps active and retired federal employees find a FEHB plan that meets their needs at a cost they can afford. Answering a few questions provides a personalized cost estimate for each plan, including the premium plus expected out-of-pocket costs.

For retirees, this guide provides a yearly cost estimate for every plan with Medicare Part A only and a separate estimate for plans with Medicare Parts A and B. Users can see how each plan coordinates with Medicare, the cost reduction of adding Medicare Part B, and whether the plan offers Medicare Part B premium rebates. They also reviewed FEHB Medicare Advantage plan options, which can be less expensive for many retirees.

Pre-order Checkbook’s 2026 Guide to Healthcare Plans for federal and postal employees; save 20% by entering promo code FEDRETIRE at checkout. Their Guide and OPM’s comparison tool will be available on the first day of the open season.

Additional PSHB comparison tools:

  • Active USPS employees should go to usps.gov to find the comparison tool.
  • Retired USPS employees can use KeepingPosted to find the comparison tool.

Use these excellent tools to drill down and find the plan that best suits your situation. Review individual FEHB & PSHB brochures; they provide the plan’s official benefits statement.

Changing Enrollment 




Annuitants (Retirees)

  • FEHB annuitants can change plans online at FEHB Open Season Online. The online service is easy to use, and you can track your submissions for changes.
  • PSHB annuitants can change plans online at the PSHB Open Season Online site.
  • Call Open Season Express at 1-800-332-9798.
  • Send FEHB changes through regular mail (Postmarked no later than the final date of Open Season) to:

Office of Personnel Management
Open Season Processing Center
P.O. Box 5000
Lawrence, KS 66046-0500

When sending requests by mail, clearly state your Open Season request. If you are making an enrollment change, tell OPM the plan you want, the type of coverage (Self Only, Self Plus One, or Family), and the enrollment code. You must include your annuity claim number and your Social Security number on your request. If you choose Self Plus One or Family coverage, OPM will need your dependents and other insurance information.

Federal Employees

Postal employees

Sign in to your online account at the Lite Blue USPS employee portal to manage your benefits.

Federal Employees Dental and Vision Insurance Program (FEDVIP)

Dental and vision benefits are available to eligible Federal and Postal employees, retirees, and their eligible family members on an enrollee-pay-all basis. Enrollment occurs during the annual Federal Benefits Open Season in November and December. New and newly eligible employees can enroll within 60 days of becoming eligible.

Please register online at www.BENEFEDS.com to review and download plan brochures, use their plan comparison tool, and initiate a change or cancel enrollment. If you aren’t a registered user, sign up now. You can review your Dental, Vision, Long Term Care, and Flexible Spending accounts. Enrollees can initiate changes during the open season, when a life event changes, or cancel coverage at any time.

For enrollment/premium questions regarding dental and vision insurance, contact BENEFEDS at 1(877) 888-3337.

Medicare Impact on FEHB / PHSB Plans

Review the following articles that describe the impact Medicare has on your FEHB provider payments.

PARCO’s FREE Webinar presents 2026 FEHB / PSHB changes and helps
participants choose a plan. Sign up for their November 12th webinar at 7:00 pm (EST)

Summary

With the costs of most things rising, it’s prudent to seek ways to save. Fortunately, there are lower-cost FEHB and PSHB options to consider that offer excellent coverage.

The task can be daunting for most because of the sheer volume of material available from literally every provider. Thankfully, there are exceptional comparison tools to help us through the process.

Prescription Drug Costs – Major Price Cuts Coming

Today, there are many healthcare choices to consider; the options drive my wife and I crazy as we scrutinize everything available!  Take your time this open season to select the best healthcare plan for your family, including prescription drug coverage.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Medicare & You 2026 – Significant Changes on the Way

Posted on Friday, 31st October 2025 by

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This guide is worth the time and effort to review and learn about your exceptional Medicare benefits. From signing up, what Medicare covers, the various plan options to consider, and how to get help paying for your healthcare drug costs, to your rights and protections.

Every year, Medicare sends out its “Medicare & You” pamphlet to anyone on Medicare or approaching age 65. Many throw out the previous year’s edition and replace it with the new one. Actually, there is much to discover with each edition, especially as we age and require more services.

The booklet you receive is tailored to your state or territory, in my case, Pennsylvania. Coverage changes and enhancements are covered at the very beginning on page 2 with a Table of Contents on page 3, followed by an extensive Index of Topics on pages 4 through 8.

For those who haven’t received a copy you can download a PDF version.




2026 Changes

If you are covered under a Part D prescription drug plan, your yearly out-of-pocket costs will be capped at $2,100. Once you reach this limit, Medicare pays all drug copayments and coinsurance for the remainder of the year. Another helpful option will be the ability to spread your drug costs across monthly payments throughout the year if needed.

The Part D maximum deductible for Medicare Part D plans will rise to $615 in 2026, an increase of $25 from the previous year. Beneficiaries will be responsible for all out-of-pocket costs until they meet the deductible.

Medicare is expanding its efforts to negotiate drug prices, resulting in lower costs for certain high-cost medications. Additionally, drug manufacturers will be responsible for covering these additional expenses, which will reduce prices at the pharmacy.

All adult vaccines recommended by the Advisory Committee on Immunization Practices (ACIP) will be covered under Part D with no deductible or cost-sharing, enhancing access to preventive care.

Postal Service employees, retirees, and their families will get coverage through the new PSHB program. Twenty percent of the original FEHB enrollees transitioned to this new system during the last open season. Postal employees who retire on or after January 1, 2025, and are under 64, are required to enroll in Medicare Part B when they become entitled to Medicare Part A (typically at age 65) to remain enrolled in a PSHB plan.

Traditional Medicare is implementing prior authorizations in six states in 2026, including:

  • New Jersey
  • Ohio
  • Oklahoma
  • Texas
  • Arizona
  • Washington

This initiative is designed to reduce wasteful spending and to find ways to provide improved and expedited prior authorization processes. Unnecessary and or inappropriate care should be minimized through this effort.

The Long & Short of It

This guide is a wealth of information, easy to read and follow. Before signing up for Medicare, most people are unaware of the differences between Original Medicare, Medicare Advantage (MA), and Medicare Supplement Insurance (Medigap). This guide explains the differences in detail.

It isn’t only for those just signing up for coverage; many change from Original Medicare to Medicare Advantage or Supplement plans to reduce costs and/or improve coverage. Others, after making a change, end up moving back to Original Medicare if the coverage and cost savings they thought they were getting don’t materialize. It’s a two-way street fraught with anxiety if not prepared.

The “At a Glance” section starting on page 11 compares Original Medicare (Parts A & B) to Medicare Advantage (Part C) side-by-side. It’s straightforward, to the point, and highlights the significant differences between the two. If you’re considering moving to an MA plan, this is definitely a must-read. Medicare Supplement plans are covered in Section 5.

Section 11 compares non-FEHB health and drug plans in your area. It starts on page 119 and includes over 50 pages, and this doesn’t include Medigap offerings in your state! They remind everyone at the beginning of this section that you can’t buy a Medigap policy while you’re in an MA plan.

Federal employees and annuitants who wish to remain in the FEHB or PSHB program must review the FEHB or PSHB plan brochures to determine the available MA and MPDP plans associated with the carriers.

Twists and Turns

Medicare asks for your help to protect our benefits from fraud and medical identity theft. They suggest checking each Medicare Summary Notice (MSN) you receive, and your receipts and statements, for errors or services you didn’t get.

This happened to me in 2023. Someone ordered men’s catheters using my account number, charging Medicare close to $3,000 a month. I reported the problem by calling the following numbers, and they issued me a new card.

If you think your Medicare Number has been used fraudulently, call 1-800-MEDICARE (1-800-633-4227). TTY users can call 1-877-486-2048 (pages 105–106).

There are differences for those enrolled in one of the Federal Employees’ Health Benefits (FEHB) plans. For example, Section 6 in the guide covers Medicare drug coverage (Part D) and states, “you’ll likely pay a late enrollment penalty for Part D coverage if you join a plan later.”

This penalty is waived for MA plans offered by your FEHB and PSHB carriers, and it also applies when you opt for a Medicare Prescription Drug Plan (MPDP) option. You will be required to pay a Part D premium if your income exceeds a certain amount, as determined by the Income-Related Monthly Adjustment Amount (IRMAA). This also impacts Part B premiums, which are income-adjusted as well.

When you sign up for an FEHB MA plan, you MUST stay enrolled in your FEHB plan. Most, if not all, of the FEHB MA plans have a zero premium; you are only responsible for the FEHB plan premium. These plans often offer a partial Part B premium reimbursement for you and your spouse as well.  Compare FEHB plans to their partnered MA options to understand these differences better.

Don’t risk losing your FEHB coverage. If you are considering a Medicare Supplement plan, you can’t suspend your FEHB coverage, and you won’t be able to return to the FEHB program next open season. Medicare Supplement plans (Medigap) are only offered by private insurance companies.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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A 30-second Check Could Change Your Retirement Plan

Posted on Monday, 20th October 2025 by

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Taking this 30-second check will help you navigate the often-complex federal retirement system. PARCO’s easy-to-use, free platform enables all Federal Employees (FERS, CSRS, Special FERS, and FSPS) to view their benefits and optimize their federal retirement. PARCO’s Free Platform is used by thousands of FERS and CSRS employees across the country and around the world.

 

 

PARCO’s team is comprised of the federal retirement experts who will help you maximize your pension and the benefits that accompany retirement. Their platform guides you step-by-step through the process. Federal employees complete their online profile, and PARCO evaluates where they are and what they may need to do to achieve their retirement goals. They put you in touch with specialists who can address your concerns and recommend a personalized path to keep you on track.

Register and give them a try, it only takes 30-seconds to sign up.

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Prescription Drug Costs – Major Price Cuts Coming

Posted on Friday, 17th October 2025 by

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The President recently announced three agreements with Pfizer, AstraZeneca, and EMD Serono to reduce American drug prices dramatically. These prices are in line with the lowest prescription drug prices in other developed nations (known as the most-favored-nation, or MFN, price).

EMD Serono’s cost reductions for its fertility drugs will result in substantial savings on fertility treatments.




AstraZeneca Drugs

AstraZeneca medicines treat nine million American patients, and they will benefit from the successful negotiation to lower prices. The millions of Americans who suffer from asthma and chronic obstructive pulmonary disease (COPD) could benefit from these price reductions.

AstraZeneca Drug Cost Reductions:

  • Bevespi Aerosphere, an inhaler used to treat chronic obstructive pulmonary disease (COPD), will be made available to patients purchasing directly at a significantly discounted price.
  • Breztri Aerosphere, an inhaler used to treat COPD, will be made available to patients purchasing directly at a discount equal to 98% of the deal price.
  • Airsupra, an inhaler used to treat asthma symptoms and attacks, will be made available to patients purchasing directly at a discount equal to 96% of the deal price.

Pfizer Drugs

Americans will realize tangible cost savings in the healthcare system as a whole. Taken together, more than 100 million patients are impacted by the diseases Pfizer’s medicines treat, and many of those will benefit from the President’s successful negotiation of lower prices for Americans.

Drug Cost Reductions:

  • Eucrisa, a topical ointment for atopic dermatitis, will be made available at an 80% discount to patients purchasing directly.
  • Xeljanz, a widely used oral medication for rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, will be available at a 40% discount to patients purchasing directly.
  • Zavzpret, a commonly utilized treatment for migraines, will be sold directly to patients at a 50% discount.

OPM Releases 2026 FEHB / PSHB Premiums

EMD Serono

This agreement is with one of the world’s leading manufacturers of fertility medications. Significant price reductions are now available for the following drugs:

Drug Cost Reductions:

  • GONAL-F, a commonly used fertility medication, will be made available to women purchasing directly from TrumpRx.gov at a significant discount.
  • Low- and middle-income women will receive an additional discount price when purchasing from TrumpRx.gov.

The Centers for Medicare and Medicaid Services estimates that women can save up to $2,200 per cycle of fertility drugs as a result of this deal on drugs that often cost over $5,000. Fertility drugs represent almost 20% of the total cost of a fertility treatment cycle.

The agreement also provides that EMD Serono will offer other medicines at a deep discount when selling directly to American patients, guarantee MFN prices on all new innovative drugs that come to market, and provide every State Medicaid program in the country access to MFN drug prices on EMD Serono products.

EMD Serono will invest in manufacturing in the United States, including manufacturing IVF drugs here for the first time, on the timelines agreed to in the deal.

Pricing Impact

The agreement will provide every State Medicaid program in the country access to MFN drug prices on these drugs, resulting in many millions of dollars in savings and strengthening the program for the most vulnerable.

The agreement requires all three companies to offer medicines at a deep discount off the list price when selling directly to American patients.

Additional Benefits

AstraZeneca announced that it will invest $50 billion in U.S. manufacturing and research and development by 2030. The company is building a new facility in Charlottesville, Virginia, which will produce advanced pharmaceutical ingredients to support its chronic disease and oncology pipelines.  The Virginia facility is projected to create 3,600 highly skilled jobs.

Final Note

It’s about time someone addressed the disparity between the cost of drugs overseas and in Canada compared to what we were paying in America! These bold actions are working and should result in reduced health care costs across the board, as the administration continues its push to reduce costs wherever possible.

More agreements are forthcoming, and overall, we should all realize significant savings on prescription drugs as these initiatives are launched.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Government Shutdown Continues – Suffering the Consequences

Posted on Wednesday, 15th October 2025 by

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After nine votes, the Senate has not been able to pass a clean spending bill, even though three Senators crossed party lines to support the bill. Six more are needed to meet the 60-vote threshold.

Many are reporting that this shutdown could exceed the 35-day shutdown of 2019! This political brinkmanship must stop; too many suffer the consequences of this stalemate. A “clean” spending bill extends existing appropriations without adding new policy changes or controversial measures. Both parties have agreed to this many times before.




Budgeting Process Sidestepped

Congress has rarely passed the 12 annual appropriations bills in time for the start of the fiscal year. Instead, funding has been acquired through temporary “clean” continuing resolutions (CRs) or bundled “omnibus” and “minibus” packages that often include policy riders.

Stop the Insanity

The House and Senate should be held accountable and not allowed to adjourn until they do their job and pass all twelve major funding bills. We all suffer from their negligence and inaction. All bills should be clean and include essential funding, not riders that benefit one party or the other.

Separate bills should be presented to cover policy riders and other funding. Both parties use the 12 appropriation bills to push through pork for their supporters to garner votes for the next election cycle or to sponsor programs that otherwise wouldn’t make it through Congress’s scrutiny.

Basically, anything other than a clean bill is loaded with pork and unnecessary special interest spending that is bankrupting our country. We are borrowing 40% or more of what we spend each year, which is unsustainable.

2026 FEHB / PSHB Spiraling Health Care Premiums Announced!

Call Your Representatives

Let your Congressman and Senators know how you feel about this issue. Here are links to the phone numbers and email addresses for both houses.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Health Care Premiums Announced for 2026 – Hold on to your Hat!

Posted on Monday, 13th October 2025 by

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Another year, another round of premium hikes for our health care. Yes, they did it again with an average increase of 10% for the FEHB program and 9% for the PSHB postal employees’ plan.




The FEDVIP premiums also increased, although modestly compared to our primary health care plans. The average increase when adding everything together is north of 12%

Review the following article for complete details about all of the changes coming our way in 2026, including increased Medicare Part B and D premiums:

Shane Stevens, Associate Director for Healthcare and Insurance, stated in a recent memorandum, “We recognize that increasing health care expenses at this clip is not a sustainable path. As we assess the overall health-versus-expense equation across the US, we find an alarming trend. Per capita health care spending is higher than in our peer nations, our life expectancy has dropped further, and we see rising rates of treatable and preventable mortality. In short, something is NOT working. As a result, we are very excited about several things OPM is working on to increase the quality of care, improve health outcomes, and reduce overall expenses.”

Ramification of the Federal Government Shutdown – The Reality

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Inflation Concerns and High Prices Persist – What’s Next

Posted on Friday, 10th October 2025 by

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Last year, I posted an article titled “Too Much Too Soon & Cable TV Subscription Costs,” in which I discussed automation and the high cost of cable TV subscription services.

Ramifications of the Federal Shutdown – The Reality

The house we visited a year ago finally sold last month, at 25% below its original asking price. This home was a custom-built ranch home in our neighborhood, and everything was monitored and remotely controlled. Mary and I couldn’t imagine living with all of the automation, even though it was gorgeous inside and mostly one-floor living.




Even though this home took a year to sell, mainly because it was overpriced to begin with, other new homes in our area continue their upward march.

One of the new ranch home communities was selling 1,400-square-foot ranch homes for the low $300,000s last year and is now offering them for just over $400,000. This is in just a year!

Inflation and Jobs Growth

In August 2025, U.S. job growth was below expectations, with only 22,000 nonfarm jobs added, and the unemployment rate rose to 4.3%. Inflation saw a slight increase, with the annual Consumer Price Index (CPI) reaching 2.9%, up from 2.7% in July. This combination of a slowing job market and rising inflation creates a challenging economic environment for the Fed Chair and other policymakers.

USA Today reported on September 9th, “The Federal Reserve is widely expected to announce a rate cut after its two-day September meeting.” The central bank announced a .25% rate cut on September 17th, and several disappointing job market reports spurred the Fed into action. Some are projecting a total of three rate cuts this year; time will tell.

The health care sector added jobs, but losses occurred in other areas, including the federal government, mining, and manufacturing, which shed 12,000 jobs.

The Bureau of Labor Statistics (BLS) reported 911,000 fewer jobs than previously reported between April 2024 and March 2025, according to preliminary benchmark revisions on September 9, 2025.

This revision indicates that the average monthly job gain was significantly lower, decreasing from 147,000 to 71,000 over those 12 months.

Don’t Cut and Run Without an Annuity – Deferred and Early Retirements

Cable Subscription Costs

Our monthly cable bill climbed to $347 a month recently. I’ve tried numerous times to renegotiate a lower price with Xfinity Comcast and experimented with several streaming plans. Our cable bill is considerably higher than most of our monthly bills.

I finally made headway this month and was able to lower our cable bill by almost 30% to $251 monthly. This included a 5-year price lock on the modem and Wi Fy. When I called them about the escalating costs, they offered several options if I transferred my two cellular lines to them.

The cable companies are seeing many subscribers abandon their services for lower-cost streaming options.

My Verizon cellular monthly cost was $117 for two lines, and Comcast offered a promotional rate of $20 per month for the two phones for a year, after which the cost would increase to $60. They also included two Apple Watches as a bonus; however, there would be a $10 cellular fee per watch, adding $20 a month to my cell phone bill, still less than half my Verizon costs.

We did drop some channels that we never watched anyway, and we haven’t noticed any significant changes in our service, a good deal overall.  I experimented with YouTube TV and other streamers and would have moved to one of them had Xfinity not reduced our costs.

The advantage of staying with a cable company is convenience and the availability of service centers in most areas. Plus, their cable remotes are much easier to use, including voice commands. Streaming services are slow to respond to your commands, and you have to use multiple remotes to get to where you want to go. My wife wasn’t interested in having to navigate various remotes for each TV.

Cable Channel Confusion

We were only using a handful of the 200+ channels we had, and seldom watch NBC, CBS, and ABC, except for local news. Most of the time, we use Amazon Prime, Netflix, HULU, and other streaming services, and watch cable news channels, Discovery, HGTV, History, Lifetime, and a few others.

Alternate Route

There are ways to cut the cord using either paid/or free TV streaming services. To get around the prospect of losing your email address, retain your current Internet provider’s internet services. Internet service averages about $80 per month, plus a Wi-Fi modem costs another $15. For information on alternate routes, review the article I wrote last year on the subject.

Summary

The rate cuts will impact retiree savings the most, through lower returns on fixed income investments. Bond, money market yields, and savings account interest will follow suit. There are options to lock up your fixed income for a longer term now before rates drop further.

Please talk with your financial advisor, they often offer higher earning with fixed deferred annuities, bonds, and CD ladders that can lock in rates for anywhere from a few years to 10 or more.

Lowering rates often causes stock share prices to rise, and those fixed-income losses could be recovered in your IRAs and TSP accounts. However, the market typically anticipates movements like this six months before they occur, and this expectation may already be reflected in the stock market. There are many variables to consider, and the stock market is highly volatile, up one day and down another.

The cost of everything is rising faster than most realize, and retirees are often the first to feel the pinch. Explore ways to economize and protect the savings you spent a lifetime accumulating.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Roth Conversion Article Update and Income Tax Impact

Posted on Thursday, 25th September 2025 by

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My article, titled “TSP Traditional to ROTH IRA Conversions Coming Soon,” has one area that needs further clarification and one typo under the “Benefits and Timing” heading. Additionally, I had intended to address the income tax impact in a separate article; it is included here for convenience.

I illustrated how much a couple with total taxable earnings of $112,000 this year could convert to a Roth IRA without increasing their Medicare premiums. Here is the corrected paragraph:

If your current joint income in 2025 from all sources is approximately $112,000, converting up to $100,000 to a Roth will keep you in the first Medicare IRMAA bracket of $212,000. Your Medicare premium would be $185. Single filers are limited to an income of $106,000 before going to the next premium tier.




IRMAAs and AGI

The Income-Required Monthly Adjustment Amount (IRMAA) is a premium surcharge applied to higher-income Medicare beneficiaries. It applies to participants in original Medicare and Medicare Advantage plans.

Medicare premiums are determined by adding the following tax-exempt income back to your Adjusted Gross Income (AGI), creating the Modified Adjusted Gross Income (MAGI) that is used for determining your IRMAA:

  • Untaxed foreign income that was excluded from your gross income.
  • Tax-exempt interest from sources such as municipal bonds.
  • The portion of your Social Security income that isn’t taxed.

The Two-Year Lookback

The last paragraph in the Benefits and Timing section had a typo stating that Medicare premiums for 2026 are calculated based on your 2025 income tax return, so you wouldn’t pay a higher Medicare premium until 2027 if you entered a higher tier.

Medicare premiums are determined from your tax return two years back, so it should have read as follows:

Medicare premiums for 2026 are calculated based on your 2024 income tax return. You wouldn’t pay a higher Medicare premium until 2027 if you entered a higher tier this year.

Another clarification includes the limits for both single and joint filers, stating that care must be taken because any amount exceeding the $106,000 limit for those filing individual tax returns and $212,000 for those filing joint returns would result in increased Medicare premiums. Therefore, it’s best to underestimate to avoid increased premiums.

The Pensioned Americans Retirement Company (PARCO) specializes in issues like this to help federal employees and annuitants successfully manage their retirement benefits. They provide the support you may need to maximize the benefits that you have earned over the course of your career.

Income Tax Bracket Consideration

If your Roth contribution causes your income to exceed the current tax bracket you are in, your federal tax rate would increase. The federal income tax rates for 2025 remain unchanged from those for 2024: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

In the illustration from the previous article, a joint filing with $112,000 of taxable income in 2025 could convert $100,000 to a Roth IRA without increasing their Medicare Premium in 2027.

A married couple filing jointly would be in the 22% tax rate with $112,000 of taxable income. However, their tax rate would increase to 24% if they converted the full $100,000.

If they reduced their Roth conversion to $94,000 or less, their federal tax rate would stay at 22%. It’s best to contribute less than the maximum in case your taxable income rises unexpectedly due to increased mutual fund annual distributions, RMD increases year-over-year, savings bond interest, or interest and dividend income.

Regardless of the impact on your Medicare premiums or whether or not you end up in a higher tax bracket, whatever you transfer to a ROTH is fully taxable in the year you convert a part of your Traditional TSP to a ROTH.

Let PARCO help you determine how much to convert to a ROTH and when.

Input Appreciated

I want to thank Marty and Gerry for bringing this to my attention. I updated our blog article to incorporate these changes. Please keep your feedback coming.

Update – Reduced Schedule

You may have missed this in a previous article, and I wanted to mention it again here. I intend to reduce the frequency of my blog and email newsletter posts to twice a month, and it’s time to settle into the life of a retiree and enjoy what is yet to come. If something pressing arises, such as this issue, I may still publish brief announcements between bi-monthly posts to keep everyone informed of significant events or changes that are forthcoming.

Please continue to send your questions and comments. I derive my articles from the input you submit. It’s been a pleasure providing this service for the past 21 years, and I hope to continue on a reduced schedule in the future.

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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