Q. I have just started the process to buy back my five years of active-duty military service. Doing so would enable me to retire at age 56 with 33 years’ service. I retired from the reserves with 22 years and will be entitled to a military pension at age 60. In a retirement seminar recently, a presenter told me I should not buy back my time because I would then forfeit my military pension. At a previous seminar, we were told it would be foolish not to buy back one’s military time. Who is correct? A. The first presenter was…
Browsing: military pension
Q. Is any state free from federal tax on federal or military pensions? A. States having no personal income taxes include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Those that exempt the total amount of civil service annuities include Alabama, Illinois, Hawaii, Kansas, Louisiana, Massachusetts, Michigan, Mississippi, New York and Pennsylvania. Kentucky exempts civil service annuities only if the employee retired before Oct. 1, 1991; North Carolina only if the individual had five years of creditable government service as of Aug. 12, 1989; Oregon for those who retired before Oct. 1, 1991, with only a…