I've reviewed all questions concerning the 3 year rule and NJ pensions (teachers) and failed to find future filing guidance for after the employee contribution has been recovered. Am I correct in assuming that I should continue to use the 3 year rule on all future filings and input the same figure in the "Annuity Cost" and "Cost Recovered in Prior Years" fields?
01665
1 Replies
fanfare
Level 15
Apr 13, 2025 12:51:11 PM
If your contribution is now recovered, your pension is 100% taxable, there is no rule to be applied.
If your contributions were not recovered in 36 months, you used the wrong rule.