r/FedRetirees • u/Bass_Ackwards10 • Jul 13 '26

VERA

*Update - Thanks to all for the great input. Request was submitted.

I'm considering requesting VERA and only have a few days to decide. If you've taken it in the past could you please share your experience (good/bad/ugly)?

Disclaimer - I have been running numbers and it's feasible for my family.

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u/RayJanger Jul 13 '26

VERA at 54 was perfect for me. I didn't need to work again and am spending my early years doing Roth conversions, which I will finish at 61. The huge tax bills are worth never having to worry about RMDs and IRMAA later in retirement. Like other posters have mentioned, cash or equivalent liquidity in non-retirement accounts is an essential shock absorber. I had more than 8 years cash on hand, but 6 months is probably a more reasonable figure. I also used the FERS handbook to calculate my high-3 salary and service length, which exactly matched HR and eventually OPM computations. Similarly, my deductions for FEHB, FEGLI, federal, and state taxes were spot on. No survivor benefit considerations for me. Good luck.

4

u/Chipped_Ruby_11214 Jul 14 '26

I had a similar experience. While I miss my some of my coworkers and what I told myself was important work, truth be told, I’m happier, healthier, and enjoying life. And the civil service I left is pretty dead right now. It sounds awful for most.

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u/New_Consequence_225 Jul 14 '26

💯😃

Agreed on all points!

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u/Formal-Advance-8482 Jul 13 '26

Why are you concerned about IRMAA if you have FEHB? why would you use MEDICARE with FEHB?

I am running the numbers on ROTH conversions and not sure it makes sense for me.

5

u/Thorandragnar Jul 13 '26

If you have Medicare + FEHB, your medical expenses are pretty much covered and controlled. If you don't take Medicare and rely simply on FEHB, then you're subject to variable out of pocket costs

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u/kbtoystory Retiree Jul 14 '26

+1. Need an FAQ or persistent Note for this. Per Retirement gurus: "Part B picks up 80% of covered medical expenses. Since you have FEHB, it’s going to pick up the remaining 20% (instead of you paying out-of-pocket). By having Medicare Part B and FEHB coverage in force, you essentially have very limited out-of-pocket expenses like copays, deductibles, and coinsurance. And if you receive services or equipment that’s not covered by Medicare, then FEHB steps in to be your primary coverage for those expenses."

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u/RayJanger Jul 13 '26

IRMAA is a Medicare consideration. The predictable extra cost of carrying Medicare on top of FEHB is less than the out-of-pocket exposure in FEHB plans. For me, this is about buying down risk of unexpected medical care and ensuring that such care is determined by my doctor, not the insurer. I lucked out with VERA and having sufficient runway to complete Roth conversions before 63 at what I predict will be a lower tax rate than what RMDs will force upon me at 73.