Repayment of FERS Annuity Supplement


In 2017 I exceeded the FERS Annuity Supplement earnings limit and am making repayments via reductions to my annuity supplement over 12 months beginning in Aug 2018. To obtain IRC 1341 relief (deduct the repayments from ordinary income), the amount repaid in a taxable year must exceed $3K.To qualify, can I make a lump sum payoff to OPM of my remaining balance due and if yes, how is this done?

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Asked on October 4, 2018 2:47 pm
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I am not sure what you are asking but if you are overpaid and then under paid, the net is zero. There is nothing to do as your 2017 1099 from OPM was too high and your 2018-2019 OPM 1099s will be lower due to the underpayment to make up. It’s a wash.

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Answered on October 4, 2018 3:46 pm