To join in on this discussion, you must first log in.

Discussion:Buying back service credit for Texas Teacher Retirement System deductible?

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Advanced Tax Questions --> Buying back service credit for Texas Teacher Retirement System deductible?


Discussion Forum Index --> Tax Questions --> Buying back service credit for Texas Teacher Retirement System deductible?

Mikeburg (talk|edits) said:

28 February 2014
I have a teacher who apparently has not contributed enough to the Teacher Retirement System of Texas who an Agreement for Purchas of Service Contract to purchase past credit.

For 2013 she paid $4,000 cash to the TRS in addition to her payroll deductions. All total, she will be paying around 19,000.

The TRS is exempt organization under Section 501(a).

(1) Are here payments to purchase the back credits deductible in any way? (2) If so, where? (3) If not, will she have a basis to deduct when she starts drawing her teacher retirement?

Thanks for any & all information. mikeburg

Pitch78 (talk|edits) said:

3 March 2014
I am pretty sure it is simply a voluntary contribution to the plan subject to the annual limit for all contributions to the plan (currently $52,000) and would not be tax deductible. I assume these were purchased with pre-tax funds out of salary?

Laketahoecpa (talk|edits) said:

3 March 2014
Typically these are purchased on after-tax basis. Not deductible but will create basis to deduct when she starts drawing out.

To join in on this discussion, you must first log in.
Personal tools