Military buyback and taxes

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Q. I was active-duty military for 10 years. I bought back this time in one lump sum of cash from my civil service job. I fall under FERS. I would like to know if that contribution to buy back my time is considered a pension/retirement contribution and can be claimed on income tax calculations.

A. No, it can’t.

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

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