Q. I live in a state that does not tax Social Security (including supplements) and allows a $6,000 deduction of pension income (FERS). Is the FERS supplement portion of my pension exempt from state income tax as well?
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Q. I recently attended a FERS retirement seminar and was told that buying back my enlisted military retirement is a bad idea because it would be close to $40,000 to $50,000. I have calculated my buy back on several online federal calculators and don’t come up with anything near that cost. I am calculating all of my active duty earnings from my entry date on active duty through my retirement date — 20 years and one month. I have included the 10 years of interest I have accrued as well since I did not buy it back within my first four years of…
Q. Let’s say I make a partial withdrawal for $50,000 in late November to make a down payment on a new house, and then retire in December. And automatically withheld is $10,000. I also still fall into the 28 percent tax bracket. Will that remaining $40,000 be taxed at 28 percent or 8 percent?