Military buyback


Q. I paid my military buyback off all at once.I was a seasonal part time GS04 for approximately nine months. I then got picked up for a full-time position and resigned after two days on that job. If I get my buyback money refunded, will it be taxed since it was not earned and was mine to begin with?

A: For tax purposes it would be treated no differently than any other deposit you  made for which you received a refund.

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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

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