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Bill
Bill, Enrolled Agent
Category: Tax
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Experience:  EA, CEBS - 35 years experience providing financial advice
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Many years ago I withdrew what money I had in my employee retirement

Resolved Question:

Many years ago I withdrew what money I had in my employee retirement fund. I paid it back this year which included $18,000 interest. Is this interest paid tax deductible?
Submitted: 7 years ago.
Category: Tax
Expert:  Bill replied 7 years ago.

Unfortunately, the interest is not tax-deductible. If you transferred pre-tax funds from one retirement plan to the other then the funds will retain their tax-deferred status in the AK state plan and only become taxable when distributions are made from the plan.

 

http://www.state.ak.us/drb/pers/pretax-payroll.shtml

 

http://www.state.ak.us/drb/pers/pretax-transfers.shtml

 

 

 

 

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