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Retirement tax questions
@petitpapabs , There is no tax deduction in the current year for buying extra credits in your retirement system. Instead, the pension payer will report a portion of your benefit as non-taxable on your 1099-R when you begin collecting pension payments. That way you aren't taxed twice on the portion of the benefits that came from the non-deductible purchase of extra credits.
March 14, 2024
1:28 PM