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BenefitsLink > Q&A Columns >

Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

Considering IT Position with a Railroad

(Posted August 22, 2013)

Question 1048: I am considering taking an IT job for a Railway company. If I do not stay the 5 years minimum to have my contributions vested, will the Tier 2 money I contribute be somehow refunded? I am worried that I will possibly be paying much more than Social Security with no added benefit if I do not stay 60 months.

Answer: If you do not have at least 60 months of rail service, your service and compensation will be used by Social Security in determining your benefits. So you would receive some value for rail service.

Your Tier 2 taxes would not be returned to you if you do not receive a Tier 2 benefit from Railroad Retirement. Tier 2 taxes are considered Federal payroll taxes, and are not refundable.

Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.

Copyright 1997-2017 Robert S. Kaufman
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