@Opus 17 @Critter-3 @dmertz , thank you VERY much! The TurboTax question field has a low character limit.
GDCP is a required after-tax deduction from the pay of part-time state workers. It is called a "Social Security replacement plan" because the state doesn't withhold Social Security from those earnings. ERSGA (Employee Retirement System of GA) holds the funds. When you finish working there in a part-time capacity, and are over 59 1/2, you can get the money refunded without penalty. I thought that was the only option. (Later, I found that there's probably an option to have them send periodic distributions.)
I wanted to know whether the IRS would consider the refund to be taxable income, so that we could set aside whatever is needed for tax. From what I understand, the ERSGA site at at https://www.ers.ga.gov/post/gdcp-handbook says that only the portion of it that was from interest on the contributions is taxable, but the contributions themselves are not taxable. However, I was seeking confirmation. To get that answer from the IRS site, I had to provide the type of plan. ERSGA kept saying they didn't know, and I didn't find it in their handbook. On my fourth call to ERSGA today, I finally got an answer (though hesitant) that it is considered a "qualified plan". I'm pretty sure that confirms that since it was after-tax money, we won't have to pay income tax on it. The ERSGA site indeed has a spot where you can look for your 1099, but they won't post the upcoming one until the end of 2023. It's hard for me to understand the way these things are phrased on websites and I'd rather not have to get an appointment with a tax advisor if it isn't necessary. I'll greatly appreciate any more clarifications anyone can offer!
Thanks again.
