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I withdrew the entirety of the Thrift Savings Plan when I departed from the military. How do I classify the money?

Forum|Forum|6 years ago
June 4, 2019
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Best answer by KenH1

The distribution from your TSP will be considered an "early withdrawal" since your are under 59.5. It will be added to your taxable income, and, you will be subject to a 10% penalty tax.

There are some exceptions to the penalty tax: Exceptions to Withdrawal Penalty, which TurboTax can handle.

You should contact TSP to get form 1099-R, which will give you the exact numbers and codes to enter into TurboTax.

K

KenH1

Did you receive a form 1099-R from TSP? What is the code in box 7?

J

james-grgurichAuthor

I did not so far. Just a letter stating the amount taken out and the amount taxed.

K

KenH1

Did you receive in 2017, or 2016? Also, did you reach 59.5 years of age last year? This will help me focus my answer, thanks.

J

james-grgurichAuthor

I received it in 2016, November time frame and I am 30.

K

KenH1Answer

The distribution from your TSP will be considered an "early withdrawal" since your are under 59.5. It will be added to your taxable income, and, you will be subject to a 10% penalty tax.

There are some exceptions to the penalty tax: Exceptions to Withdrawal Penalty, which TurboTax can handle.

You should contact TSP to get form 1099-R, which will give you the exact numbers and codes to enter into TurboTax.