Military buyback and tax deductions

4

Q. I bought back 2½ years of service (about $2,500; $647 was principle and $ 1,857 was accrued interest) in 2011. The redeposit was for service provided from March 25, 1985, to Aug. 26, 1987. Is any of it is tax-deductible for this year’s taxes?

A. No, it isn’t.

Share.

About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

4 Comments

  1. I worked for the postal service for 5 plus and I bought back just over three years. Do you know if someone would be entitled to any benefits? Any information would be appreciated. Thank you

    • If you didn’t ask for a refund of your retirement contributions and bought-back time, you’d be entitled to a deferred annuity at age 62.

Leave A Reply