The Slott Report
What It Means for Those Federal Employees Reclassified into Schedule Policy/Career
1. You Become an “At‑Will” Employee
Employees moved into Schedule Policy/Career lose traditional civil service removal protections and become effectively at‑will, meaning they can be removed more easily for performance or misconduct.
The executive order strips job protections from roughly 8,000 senior‑level career employees.
Employees cannot appeal adverse actions to the Merit Systems Protection Board (MSPB).
2. Roles Are Still Career, Not Political — But With Fewer Safeguards
OPM emphasizes that Schedule P/C positions remain career, merit‑based roles, not political appointments.
These positions are confidential or policy‑influencing and continue to follow merit‑based hiring and veterans’ preference.
However, they are excluded from standard performance‑based and adverse‑action procedures under 5 CFR parts 432 and 752.
3. Accountability Standards Increase
The administration’s stated goal is to ensure senior policy‑influencing employees can be held accountable for results.
OPM says the rule “strengthens accountability” and ensures policy‑shaping officials can be removed when performance is poor.
Officials argue it restores the ability to remove employees who resist carrying out lawful policy directives.
4. Whistleblower Protections Change
Protections still exist — but enforcement shifts.
Schedule P/C employees are protected from whistleblower retaliation under agency policies, not the Office of Special Counsel.
Critics warn employees may now fear retaliation for reporting wrongdoing.
5. Most Affected Employees Are Senior-Level
The reclassification overwhelmingly targets high‑level positions:
97% are GS‑15 or Senior‑Level (SL) roles across government.
Roles include program managers, regulatory writers, attorneys, HR leaders, CIOs, and other policy‑influencing positions.
6. Employees Keep Pay, Benefits & Retirement
Reclassification does not change pay, retirement eligibility, or FEHB/FEGLI benefits.
Pension and retirement benefits remain the same as other federal employees.
7. Significant Uncertainty Remains
Employees report confusion about whether they are affected and what their new status means.
The White House’s 229‑page appendix lists positions but does not specify how many employees per role, seniority levels, or occupational series.
📌 Bottom Line for Federal Employees
Being moved into Schedule Policy/Career means you keep your career status, benefits, and merit‑based hiring protections — but lose traditional civil service job protections and MSPB appeal rights. You become at‑will, with accountability and removal authority shifted to your agency. This is a major structural change affecting thousands of senior policy‑influencing federal employees.
Sources:
AFGE
Federal News Network
Government Executive
OPM
A Cheat Sheet for Retirement Account Beneficiary RMDs
The SECURE Act completely changed the rules for beneficiary IRA (and workplace retirement plan) required minimum distributions (RMDs). It’s now been more than 6 years since the SECURE Act became law and almost 2 years since the IRS finalized its RMD regulations. Yet there’s still plenty of confusion about how these rules work. To help keep things straight, we present our beneficiary RMD cheat sheet.
Keep in mind that these are the rules for retirement accounts inherited after 2019. Pre-SECURE Act rules applied for accounts inherited before 2020, and those old rules were grandfathered and continue to apply for those accounts. Also note that there are separate rules for successor beneficiaries (beneficiaries of beneficiaries).
Where to Begin
To begin with, we need to answer two questions:
Did the IRA owner die before or after the required beginning date (RBD) for starting RMDs? The RBD is April 1 of the year following the year the IRA owner reaches age 73 (if born between 1951 and 1959) or age 75 (if born after 1959). A Roth IRA owner is always considered to have died before the RBD.
What kind of beneficiary do we have? An eligible designated beneficiary (EDB) is a surviving spouse of the IRA owner; a minor child (under age 21) of the owner; a chronically-ill or disabled person; or someone who is not more than 10 years younger than the account owner. A non-eligible designated beneficiary (NEDB) is an individual beneficiary who’s not an EDB. A non-designated beneficiary (NDB) is a beneficiary who’s not a person, such as an estate, a charity or a non-qualified trust.
Rules That Apply When a Traditional IRA Owner Dies BEFORE the RBD OR a Roth IRA Owner Dies at Any Time
EDB (other than a minor child): An EDB other than a minor child can either (1) take annual RMDs over the EDB’s life expectancy, or (2) use the 10-year payment rule. If the 10-year rule is elected, the inherited account must be emptied by December 31 of the 10th year following the year of death, but annual RMDs aren’t required during the 10-year period. A surviving spouse EDB can also do a rollover to the surviving spouse’s own IRA (usually not recommended until age 59½).
EDB (minor child): A minor child EDB can either (1) take annual RMDs until the year the child turns age 30 and then empty the inherited account by the end of the following year, or (2) have the 10-year payment rule apply. If the 10-year rule is elected, the inherited account must be emptied by December 31 of the 10th year following the year of death, but no annual RMDs are required.
NEDB: The 10-year rule applies, but annual RMDs aren’t required.
NDB: The 5-year rule applies. The entire account must be emptied by December 31 of the 5th year following the year of death, but no annual RMDs are required during the 5-year period.
Rules That Apply When a Traditional IRA Owner Dies ON OR AFTER the RBD
EDB (other than a minor child): An EDB other than a minor child can take annual RMDs over the EDB’s life expectancy. But if the EDB is older than the deceased IRA owner, the EDB can use the deceased person’s longer life expectancy in calculating RMDs. A surviving spouse EDB can also do a rollover to the surviving spouse’s own IRA (usually not recommended until age 59½).
EDB (minor child): A minor child EDB can take annual RMDs until the year the child turns age 30 and must empty the inherited account by the end of the following year.
NEDB: The 10-year rule applies, and annual RMDs are required during the 10-year period (based on the beneficiary’s single life expectancy starting in the year after the year of death).
NDB: Annual RMDs must continue over the deceased IRA owner’s remaining single life expectancy assuming the owner had lived (the “ghost rule”).
Copyright © 2026, Ed Slott and Company, LLC Reprinted from The Slott Report, 5/11/26, with permission. A Cheat Sheet for Retirement Account Beneficiary RMDs - Ed Slott and Company, LLC Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Is The New “Trump IRA” Fake News?
On April 30, 2026, President Trump signed an executive order to promote retirement savings for American workers. In its aftermath, we have had a flurry of questions about a new savings option called a “Trump IRA.” This is, as the saying goes, “fake news.”
Here are three things you need to know to separate fact from fiction about the new presidential order and its impact on retirement savings.
1. There is no such thing yet as a “Trump IRA.” The executive order did not create a new tax-advantaged account to save for retirement. The President cannot, in fact, do this on his own. Only Congress can change the tax code and create a new savings vehicle. The President, however, can establish a website, and that is what happened. The executive order calls for the establishment of a website (TrumpIRA.org) by January 1, 2027.
2. The new website (TrumpIRA.org) will promote the Saver’s Match. The Saver’s Match is not a newly created initiative. It was already in the works. It was enacted in 2022 as part of the SECURE 2.0 Act and is effective starting in 2027.
The Saver’s Match will replace the current Saver’s Credit and will provide a federal matching contribution of 50% on the first $2,000 of annual retirement contributions (up to $1,000 annually) for eligible lower-income savers. This match is deposited directly into a 401(k), 403(b), or IRA. For single filers, the Modified Adjusted Gross Income (MAGI) phaseout range is between $20,500 and $35,500. For those who are married filing jointly, the MAGI phaseout range is between $41,000 and $71,000. Unlike the current Saver’s Credit, the Saver’s Match is available even for eligible savers who don’t owe federal income tax.
The executive order also says that the new website will list financial institutions that offer IRAs that will accept the Saver’s Match and meet certain other criteria to enhance retirement savings. The website will allow users to filter and select IRAs based on their cost and quality.
3. The new order has nothing to do with Trump Accounts. Trump Accounts are tax-deferred investment vehicles for children under 18, created under the One Big Beautiful Bill Act of 2025. Contributions to these new investment accounts are scheduled to be available on July 4, 2026. More guidance is expected to be released soon to explain more about how exactly these accounts will work, but the executive order does not do this.
Another factor making things even more confusing is that while a Trump Account is subject to special rules until the year the child reaches age 18, at that point it then becomes a traditional IRA, subject to all the normal IRA rules. So, while the account does change from being a Trump Account to being a regular traditional IRA, there never is a point where it is a “Trump IRA.”
Copyright © 2026, Ed Slott and Company, LLC Reprinted from The Slott Report, 5/18/26, with permission. New “Trump IRA” Is Fake News - Ed Slott and Company, LLC Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Backdoor Roth IRAs and Inherited IRAs: Today’s Slott Report Mailbag
QUESTION:
When someone under age 59½ uses the “backdoor” method of making Roth IRA contributions, does the 10% penalty apply to subsequent withdrawals if the IRA contribution was non-deductible?
Thank you,
John
ANSWER:
John,
The “backdoor Roth” contribution method involves making a non-deductible contribution to a traditional IRA, and then converting those dollars to a Roth IRA. Backdoor Roth IRA contributions are necessary for anyone with income that exceeds the annual Roth IRA contribution phase-out ranges. If the non-deductible dollars are then withdrawn from the Roth IRA after the conversion, there is no 10% early withdrawal penalty on those specific funds, regardless of a person’s age. However, any earnings on the non-deductible dollars would be subject to the penalty if they are received before the Roth IRA owner turns age 59½ (assuming no exception exists).
QUESTION:
Hello,
I am looking for some direction on how to title a beneficiary IRA. My mother passed away in March of this year at age 94, and my sister and I are 50/50 beneficiaries. The custodian wants to title the account as: “John R. Doe as beneficiary of Jane C. Doe IRA” (implying that Jane has died, rather than explicitly stating the fact). If I recall, the title should include “for the benefit of” and be something like: “Jane C. Doe deceased (3/28/2026) FBO John R. Doe, Beneficiary.” Please provide guidance on the proper title content and format.
Thank you and keep up the great work!
Jim
ANSWER:
Jim,
Sorry for the loss of your mother. As for the “proper” titling of an inherited IRA, there is no universally required method or set format. The deceased IRA owner’s name must remain on the account, and it must be clear that it is an inherited IRA. This is typically accomplished by using the words “beneficiary,” “beneficiary IRA” or “inherited IRA.” Both examples you provided are acceptable, although we prefer a title similar to what you suggested: “Jane C. Doe IRA (deceased 3/28/2026) F/B/O John R. Doe, Beneficiary.”
Copyright © 2026, Ed Slott and Company, LLC Reprinted from The Slott Report, April 30, 2026, with permission. Backdoor Roth IRAs and Inherited IRAs: Today's Slott Report Mailbag - Ed Slott and Company, LLC Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
