Defined Benefit Plan -Voluntary Contributions

[ColoRock]

I’m a state employee with a defined benefit plan. If I purchase service credits (voluntary contributions to increase payout at retirement and/or retire earlier) where would I enter these contributions in TurboTax? I see info for self employed, but not my situation.

Maybe these contributions aren’t tax deductible? Since my regular contributions are tax deferred, seems like additional would be too?

[VolvoGirl · Accepted solution]

Right they are not tax deductible now.   I bought more time too.  The plan will keep track of it for you and when you start taking retirement it will be allocated.  Part of it will come out tax free and not  be taxable.  Unless you pay it with pre-tax money like from a Traditional IRA.

[ColoRock]

That makes sense. Was hoping to cover part of the contribution with a current tax deduction, but I guess I’ll have to dig a bit deeper. Thanks!