Post date: Jun 12, 2014 3:14:42 PM
New Ruling by IRS went into effect early fall of 2005. It will allow you to defer your federal tax on your sick leave buy back. This must be done properly to be effective. If you do not need your sick leave buy back at the time that you retire and wish to defer paying federal tax on it, please email me at mardito@retireesunited.org and I will have someone knowledgeable about the process contact you. In the year you retire, if your sick leave buy back is a good amount, you may have federal tax implications. If you retire June 30 of a given year, you will collect 1/2 year of full teacher's salary plus 1/2 year of your pension.(You collect pension for the months of July and August). Plus if you take on a full or part time job you will have that income as well. If you do the long form for taxes, you will have a very high salary if you add a high amount of sick leave buy back to the above two or three amounts.