IRA contributions.

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In 2015 I retired from Texas Teacher retirement system. I did not start drawing my pension until March of 2016. I had cashed in several years of service back in 1989. I bought back 8 yrs of service in Feb 2016 for about $41,000. When I with drew the money I paid Fed taxes on the amount. In 2016 when I bought back my years I paid for it with taxed money. Can I claim some of that money as a IRA contribution or some other deduction.

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MinhT1Answer

Alumni - Intuit

You cannot deduct the amount of your pension buy back now. But your pension administrator will keep track of this basis and when you start to draw your pension, some of it will be tax free.

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MinhT1Answer

Alumni - Intuit

You cannot deduct the amount of your pension buy back now. But your pension administrator will keep track of this basis and when you start to draw your pension, some of it will be tax free.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"