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When I left my employer many years ago, I took a lump sum for my pension. Now I'm rehired by the same employer, and my service pension may be restored if I make a one time repayment to the pension plan. My question is what the tax implication is for this event. I was told I could not rollover a 401k distribution as the repayment. Therefore, the repayment will come from after-tax money. If I take a lump sum pension distribution again upon retirement, the lump sum distribution will be taxed again. Will my repayment be double taxed, or is the repayment amount deductible from the future lump sum pension distribution? For example, if I make a repayment of $50k (which has already been taxed) today to restore the pension, and I retire next year to take a lump sum distribution of $60k. Will the total amount of $60k be subject to tax next year (in which case $50k will be double taxed), or just $10k (= $60k - $50k ) will be taxable? Or is $50k tax deductible in this year's tax return?