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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.
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