important information

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.

New interest rates were assessed to buy-back service after July 1, 2005. Contact me at mardito@retireesunited.org if you need assistance in transferring funds from your annuities or 403 accounts to pay for creditable service buy back.. Be sure to include home phone number.

New calculation for Option C and Option B. Click on Senior Information on home page; Preretirement information on next page, and retirement allowance and it will provide you with the information you need. Contact me at mardito@retireesunited.org if you wish to have someone sit down with you to calculate your approximate benefit under each of the options so you can make an informed decision.

What You Should Be Aware of in Drawing Down you IRA. 403b

The Commonwealth of MA began allowing Tax Sheltered Annuities (TSA's), 403b's etc, to be taken out on a pretax basis in January of 1998. Up until that time you paid state taxes on your contirbution to the fund. Make sure you take out the part that you already paid taxes on first and then the rest, including interest which will be taxed. You will have to file two W-4's with your financial institution--- one telling them to take federal tax out-- the other telling them not to take state tax out. When you have exhausted your contribution amount--- sumit a new W-4 telling them to start taking state tax out. Contact me at mardito@retireesunited.org if need further clarification.