IRS Publication 721: Tax Guide To U.S. Civil Service Retirement Benefits

DEFINITION of 'IRS Publication 721: Tax Guide To U.S. Civil Service Retirement Benefits'

A document published by the Internal Revenue Service (IRS) that provides information on income tax rules for individuals who have retired from federal service. Retirement benefits for federal employees are paid by either the Civil Service Retirement System (CSRS) or the Federal Employee Retirement System (FERS). IRS Publication 721 covers survivor benefits, thrift savings plans, rollovers, federal estate taxes and the Simplified Method for calculating annuity benefits.

BREAKING DOWN 'IRS Publication 721: Tax Guide To U.S. Civil Service Retirement Benefits'

Part of the benefits paid out is tax free, because they are contributions made by the employee, while the rest of the benefits are considered taxable. The tax-free part is a fixed number; the taxable part is the difference between the full amount and that which is not taxed.

RELATED TERMS
  1. Civil Service Retirement System ...

    A system that provided the retirement, disability and survivor ...
  2. Federal Employee Retirement System ...

    A system that became effective in 1987 and replaced the Civil ...
  3. Thrift Savings Plan - TSP

    A retirement savings plan created by the Federal Employee's Retirement ...
  4. IRS Publication 575

    A document published by the Internal Revenue Service (IRS) that ...
  5. Unit Benefit Plan

    An employer-sponsored pension plan that provides retirement benefits ...
  6. Past Service

    Service to an employer that is recognized for the defined benefit ...
Related Articles
  1. Retirement

    Thrift Savings Plan Helps Federal Workers Retire

    The TSP is key component of retirement savings for U.S. government workers and members of uniformed services.
  2. Retirement

    What's a Qualified Retirement Plan?

    Employers establish qualified retirement plans to help their employees save money.
  3. Retirement

    What You Didn't Know About Utah's Retirement Systems

    While Utah isn’t quite as generous with employee retirement benefits as it once was, its contribution rate for new hires is still very competitive.
  4. Financial Advisor

    8 Essential Tips For Retirement Saving

    Whether you're a saver or a financial advisor who want to give their clients a leg up, these 8 tips are essential for financial planning.
  5. Financial Advisor

    Retirement Savings: How Much is Enough?

    Sure, you can never save too much for retirement, but just how much is enough?
  6. Financial Advisor

    Retirement's Evolution: How to Be Prepared

    For many, retirement might not be the full stoppage of work and living a life of leisure but rather one of slowly phasing out of the workforce.
  7. Financial Advisor

    Is the 80% Retirement Rule Valid for Clients?

    Is the 80% rule of thumb for retirement spending a reasonable one?
  8. Retirement

    When Do I Stop Paying Social Security Tax?

    Almost never, unless you belong to one of these special groups.
  9. Retirement

    Why Saving 10% Won't Get You Through Retirement

    Retirement experts often tout the 10% rule: To have a good retirement, you must save 10% of your income. The truth is, most people need to save far more.
  10. Personal Finance

    3 Federal Income Tax Facts You Didn't Know

    Learn about three federal income tax facts that most Americans may not know from one of the most trusted financial resources on the Web.
RELATED FAQS
  1. What is the maximum I can receive from my Social Security retirement benefit?

  2. What are the best ways to pay less income tax?

    Learn about reducing your income tax burden by contributing to an employer-sponsored retirement plan or IRA, and see what ... Read Answer >>
  3. How do deferred tax assets help in meeting retirement goals?

    Learn how tax deferred assets can help individuals achieve long-term financial goals such as retirement and how they differ ... Read Answer >>
  4. What is the difference between a state income tax and a federal income tax?

    Learn the difference between state income tax and federal income tax based on tax rates, deductions, tax credits and taxable ... Read Answer >>
  5. What does a sample plan using the 4% retirement rule look like?

    Discover how the 4% retirement rule can work as part of a plan to achieve increasing retirement income if investments perform ... Read Answer >>
  6. How do gains from my 401(k) figure into my taxable income?

    Understand what a 401(k) is and how it's used to help employees save for retirement. Learn how gains from a 401(k) figure ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center