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- teacher purchase of years of service
teacher purchase of years of service
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nativelvnv
Level 1
10-15-2021
06:34 PM
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deduction for purchase of retirement years for pension
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abctax55
Level 15
10-15-2021
06:48 PM
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Research buying "air time retirement or pension.
But I fail to see how buying "more" future income is deductible....
"*******Tax software is no substitute for a professional tax preparer*******
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BobKamman
Level 15
10-15-2021
07:23 PM
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If bought with after-tax dollars, it's recovered the same way that other after-tax contributions to the pension cost are deducted. Pro-rated over the life of the pension, once you start collecting benefits. Usually there is some safe-harbor rule that allows this over all payments to age 80 or 85. Look up pension general rule.
If bought with pre-tax dollars -- for example, by transfer from a 401(k), 403(b) or IRA -- then it has already been deducted and you don't get to claim it again.
