Question

I purchased additional years of service toward my City pension plan using after tax money. Is that something that can be deducted?

Forum|Forum|5 years ago
March 27, 2021
1 reply
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TurboTax Live Deluxe Online

No. It is likely you paid for your service credit for additional years with a lump sum payment or through payroll deductions. If paid with payroll deductions, then it was most likely paid with pre-tax dollars. If you sent a lump sum or paid for additional years of service in another way, then when you retire, you will not have to pay income tax on the portion of your retirement pay that represents the amount you paid in, because that income has already been taxed. In either of these methods used, you would not be able to get a deduction in the current year.

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