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3-Year Rule Retirement Pension- What is the "cost basis" for my pension? Is it the amount that I contributed or do I also include what my employer contributed ?

Forum|Forum|7 years ago
June 5, 2019
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This is the first year of my retirement and I can use the 3-year rule to exclude being taxed on my pension disbursement. What is the "cost basis" of my pension? Is it just the amount I contributed, or do I also include the amount that my employer contributed ?

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Best answer by MichaelL1

The amount that you contributed is your cost basis.

The 3 year is no longer applicable to recent retirees, it is for those that retired years ago and now all of their pension is taxable income

MichaelL1Answer

Employee

The amount that you contributed is your cost basis.

The 3 year is no longer applicable to recent retirees, it is for those that retired years ago and now all of their pension is taxable income