Will My Charity Work Force Me to Lose Railroad Retirement?

Welcome, everyone, to another edition of the Highball Advisors Railroad Retirement Mailbag. I'm John McNamara of Highball Advisors, and today’s question comes from a CTW.

He writes: "I'm 51 years old, a married man with 28 years of railroad service. I'm also bi-vocational—I work for a charity that I love, and they pay me W-2 income that contributes to Social Security. If I leave the railroad at 53 with 30 years of service and continue working for the charity, how would that impact my railroad retirement at age 60?"

First off, congratulations on nearing 30 years of service—and thank you for your meaningful work with the charity. That’s truly commendable.

Now, let’s talk about how that decision affects your Railroad Retirement benefits.

If you leave the railroad at 53 and continue working for a non-railroad employer—especially in a W-2 position like your charity work—you'll lose your current connection to the railroad. This is important, because losing that current connection means you forfeit the survivor annuity your spouse would otherwise be entitled to.

However, your full railroad retirement annuity at age 60 wouldn’t be affected. With 30 years of service, you’d still qualify for a full annuity at 60. The main concern here is the survivor benefit if something were to happen to you before or after retirement.

You’ll want to think carefully about the timing—especially if you plan to work beyond 12 months after leaving the railroad, since that breaks the current connection under the Railroad Retirement Board's rules.

I highly recommend checking out my video titled “Do I Need a Current Connection to Receive Railroad Retirement Benefits?” It dives deeper into this exact topic and can help you make an informed decision.

Railroaders, I hope you found this video helpful. Keep sending in your questions—I’ll keep making videos to answer them.

Until next time, stay safe, stay on track, and take care. So long, everybody!

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.