Maximize Your Federal Employee Benefits This Enrollment Season
Quick Facts You Should Know
Thrift Savings Plan (TSP)
Automatic 1% government contribution + up to 5% match.
Health Savings Account (HSA)
Triple-tax savings if you’re enrolled in a high-deductible health plan.
Dependent Care FSA
Save taxes on childcare or eldercare—up to $5,000/year.
Long-Term Disability Coverage
Basic coverage is included, but may replace less than you expect—especially for higher salaries.
FEGLI Group Life Insurance
Coverage reduces or ends in retirement unless converted; max $400,000 often falls short for family needs.
Key Considerations and Mistakes to Avoid
Missing the full TSP match: One of the most common—and costly—oversights.
Relying solely on FEGLI: Coverage may be insufficient or reduce in retirement.
Confusing HSAs with FSAs: One rolls over, one doesn’t.
Forgetting the income gap with disability: Government LTD may not fully cover your lifestyle.
Choosing benefits in isolation: Benefits should align with your bigger financial goals.
A Case Study
Aurora, a 35-year-old federal employee, earns $160,000 annually. Her top priorities are saving for retirement and purchasing a home in the next few years.
On the surface, Aurora was making smart choices—contributing to her TSP, electing FEGLI, and taking the standard health plan. But during a benefits review, we uncovered several opportunities she hadn’t considered:
After our benefits review:
● Aurora was contributing 3% to her TSP, not realizing she was leaving $4,800/year in free government matching contributions on the table. We helped her increase to 5% to capture the full match.
● She hadn’t set up a Dependent Care FSA despite paying over $18,000/year in childcare costs. By enrolling, she unlocked nearly $1,300/year in tax savings.
● We reviewed her FEGLI coverage and identified a $25,000+ annual survivor income gap if something happened to her. We discussed supplemental options to protect her family while staying on track for her home purchase.
● We adjusted her savings allocation—ensuring she balances TSP retirement contributions with building a dedicated down payment fund for her future home.
By aligning her federal benefits with her overall financial plan, Aurora increased her retirement readiness, freed up tax savings, and created a clear strategy for buying her home.
Learn More
This material is provided by Aether Financial Group for educational purposes only. We are not affiliated with, endorsed by, or acting on behalf of the U.S. Federal Government or any of its agencies, departments, or benefits providers. While we make every effort to ensure the accuracy of information based on available resources, benefits details should always be confirmed directly with your agency’s Human Resources office and the official plan providers. Nothing herein should be construed as legal, tax, or benefits administration advice.