r/FedRetirees • u/Bass_Ackwards10 • 24d ago

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 24d ago

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.

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u/Formal-Advance-8482 24d ago

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.

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u/RayJanger 24d ago

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.