This post is a reminder that once the educator reaches 55 years of age and retires, all TDA withdrawals are exempt from New York State and City taxes. Just like our regular teacher pension, the retiree only pays Federal taxes. However, if the retiree moves out of State, the retiree would need to pay State and Local taxes for any TDA withdrawals..
For educators under the age of 72 you can leave all your money in the TDA and can keep on appreciating tax deferred, unless you choose to annuitize the TDA. However, if you have reached the age of 72, you must withdrawal at least the percentage that the Required Minimum Distribution mandates. Finally, some people believe there is a $20,000 limit on withdrawals that are exempt from State and City taxes. That only applies to non-public sector pensions and not to our pension or the TDA withdrawals.
Teachers may be underpaid and not appreciated bit we have a good pension and a great TDA when they are exempt from State and City taxes..
15 comments:
Thank you for clarifying that. It was ruled that 403B withdrawals were considered the same as pensions.
Great for NYC retirees. Although I would advise retirees to consider there health and enjoy themselves while
They mobile and in a good state of heath.
Is the city 457 exempt from city and state tax?
Is this considered a City pension?
are pre tax contributions for fed and state or just fed. In the words are we paying the tax now or is that money never taxed by the city and state?
My undderstanding of the law indicates that some states, such as Nevada and Florida among a few others do not tax your retirement benefits.
Gee haynsworth, quite a profound understanding
Since neither state has an income tax
Trying to retire after 30 years.
Can’t take it no more!
Have a pension which city and state tax exempt
TDA which is city and state tax exempt
City 457 which is first 20,000 city and state tax
exempt
Social Security which is also tax exempt
So this is my bucket system
I have to watch out for inflation because my money
after 20 years is probably worth half.
My TDA after 20 years is worth four times
every 10 years doubles in fix.
6:23
I don’t believe SS is tax exempted. I believe you can blame Reagan for that.
Our pension is iInflation protected after five
years in retirement and only at 19% Which is
not good.
Social Security is inflation protected.
I just googled Social Security and retirement and taxes New York State is tax
valley and you don’t pay taxes on social security
you will pay FEDERAL TAX on Social Security.
Thank you
You pay federal tax on everything
Except Roth IRA
But another benefit of the TDA
you don’t pay city or state tax that’s
a savings of 11 1/2%
What if I resign after being vested and have to move my TDA out after 7 years into a Traditional IRA. Will I have to pay NYS taxes because it is not held by TDA?
iF YOUR VESTED YOU CAN KEEP YOUR MONEY IN THE tda. tHE 7 YEARS ONLY APPLY TO NON-VESTED EDUCATORS.
I paid into 25/55 but now have 32 years at 61. I am entitled to a refund of the money I put in. There seems to be confusion by TRS. They claim I can only get 50% of the money I put in refunded. I think they are wrong and misleading.
The AMC (additional member contributions) is made up of 50% employer contribution and 50% of employee contribution. It reads that at 62 you are entitled to a refund of the employee portion of the AMC(50)%. TRS sees this as 50% of your employee portion but if that were the case it would read you only get back 50% of the employee portion. Can you clarify of I am right ?
11:14
Obviously I’m not Chaz, but when they first offered 25/55 I remember them saying you would only get back 50%.
Sorry
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