Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
lj2man
New Member

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.

 
1 Best answer

Accepted Solutions
VolvoGirl
Level 15

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.

View solution in original post

1 Reply
VolvoGirl
Level 15

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.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~