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Will the following change my tax owed in any way? In 2018 I used after tax dollars to "buy up" my total months of service before I retired.
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Will the following change my tax owed in any way? In 2018 I used after tax dollars to "buy up" my total months of service before I retired.
No not when you bought the years. But when you start getting your pension it will be prorated. The plan will keep track of it for you and part of your payments will be tax free. My husband did that too from the state of California. So a little of it will not be taxable. You'll see on the 1099R you get at the end of the year.
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Will the following change my tax owed in any way? In 2018 I used after tax dollars to "buy up" my total months of service before I retired.
No not when you bought the years. But when you start getting your pension it will be prorated. The plan will keep track of it for you and part of your payments will be tax free. My husband did that too from the state of California. So a little of it will not be taxable. You'll see on the 1099R you get at the end of the year.
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