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Will My Wife Get Her Tier 2 by Going Back to Work in Railroad Retirement? Thumbnail

Will My Wife Get Her Tier 2 by Going Back to Work in Railroad Retirement?

Tier 2 Video Spouse Annuity Retirement Financial Planning


Welcome to another edition of the Highball Advisors Railroad Retirement Mailbag! I’m John McNamara from Highball Advisors, and today’s question comes from Chris M. He says, “I’m a subscriber and love your channel! I have a quick question: My wife is retiring on August 1st, 2025, and won’t be working for six months until I retire on February 28th, 2026. Then her annuity starts March 1st, 2026. Can she go back to her old employer after more than six months and not face any penalties?”

Thank you for the kind words, Chris, I really appreciate it! So, it sounds like you’re concerned about the Last Previous Employer (LPE) penalty that the Railroad Retirement system imposes on Tier 2 and spousal annuities. To avoid this penalty, the general rule is that your wife must have a break of at least six months from her previous employer.

Since she’ll be out of work for more than six months, she should be in the clear, but as always, I recommend confirming this with the Railroad Retirement Board directly to ensure everything is in order.

For more details on this topic, check out my video How Your Spouse Can Be Affected by the LPE in Railroad Retirement, which goes over this for both you and other railroaders in similar situations.

Feel free to send in any questions you have, and I’ll create a video to answer them. Until next time, everyone, stay safe, stay on track, and take care! So long for now!

 

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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.