lets-retire
Thinks s/he gets paid by the post
- Joined
- Dec 28, 2004
- Messages
- 1,798
I currently have a balance in a Florida State retirement account. I am contemplating taking the money out of that account and purchasing several years of military time for the federal government. Florida retirement has two different type of programs. The first is your typical pension where you work for so many years and receive a certain percentage per year for your retirement. The second, the one I have, each paycheck the agency deposits money into an account for you, similar to a 401, but you can not deposit any of your money in it. When you retire you receive the money (there's more to it, but it is not relevant to my question). If I take the money out of the Florida retirement account to pay for my military time and roll any excess over to an IRA will I be taxed on the amount and have to pay the penalty? I have looked through the IRS website, but have been unable to find anything that addresses the question, so if you know could you post where the information is.
A quick description of the plan can be found at https://www.myfrs.com/content/frs_programs/new_invest_plan.html
It says I can roll the balance over to an IRA or another employers plan, but does purchasing military time fall into this category?
A quick description of the plan can be found at https://www.myfrs.com/content/frs_programs/new_invest_plan.html
It says I can roll the balance over to an IRA or another employers plan, but does purchasing military time fall into this category?