Retirement tax questions
Per the following from the City of Dayton website, they tax wages, rental income and other earned compensation. There is no mention of retirement benefits. So it seems they tax your gross wages because they will not tax your pension distributions later on. The federal government and apparently your state does not tax the money you put away for your pension until you take distributions from it. Either way it is getting taxed, it is just that the City taxes it up front rather than when you retire.
