Insights

For most Americans, the answer is no. Social Security is facing long-term funding challenges, but that does not mean the program is expected to disappear. Even if Congress took no action, payroll taxes would continue to fund a significant portion of scheduled benefits.

You spent decades building a federal retirement package that most workers would envy (a pension, a TSP, Social Security, and a FEHB health plan that follows you into retirement). What a lot of federal employees don't fully reckon with, though, is that the IRS is going to take a meaningful piece of that income.