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My name is ***** *****, are the monies spent buy backs tax

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Customer: my name is *****...
Customer: my name is ***** *****, are the monies spent for pension buy backs tax deductible
JA: Thanks. Can you give me any more details about your issue?
Customer: just that...in order to receive my pension I had to buy pension time to equal the minimum requirement of 5 yrs...this cost me 5700 dollars to purchased the additional 2 years 2 months...I want to know can I deduct this amount of money as a tax deduction against my income tax
JA: OK got it. Last thing — JustAnswer charges a fee (generally around $32) to post your type of question to Tax Experts (you only pay if satisfied). There are a couple customers ahead of you. Are you willing to wait a bit?
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Submitted: 1 year ago.Category: Tax
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Answered in 2 hours by:
1/12/2016
Tax Professional: Anne, Master Tax Preparer replied 1 year ago
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,439
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Verified

Hi

I'm Anne. I've been preparing taxes for 27 years and I'll be happy to help you.

Unfortunately, you may not deduct the buy back on your taxes. However, if you use after tax dollars to purchase the pension, (as opposed to using say IRA funds ) then you won't pay tax on that money again once you start drawing your pension.

For more in depth information please see IRS pub 575 (https://www.irs.gov/pub/irs-pdf/p575.pdf) beginning on page 10 "Investment in the Contract"

If this answer has helped you, please take the moment to rate positive (by clicking on the stars)

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Tax Professional: Anne, Master Tax Preparer replied 1 year ago

I see you read my answer but didn't rate it.

Do you have additional questions? Is there anything else I can help you with?

Sometimes the answer you receive is not the answer you were hoping for. Please know that if there were any legal way to deduct the additional investment in your pension, it would have been my pleasure to tell you that.

Please note that it is ONLY through positive ratings that we are compensated for our time and knowledge.

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Anne
Anne
Anne, Master Tax Preparer
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Satisfied Customers: 2,439
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