![]() ![]() citizen or resident alien for the entire tax year. ![]() If married, the spouse must also have been a U.S. citizens or resident aliens for the entire tax year for which theyre inquiring. The tool is designed for taxpayers who were U.S. However, the earnings on those contributions will be taxed when you withdraw them, just like other traditional money. Whether federal income tax was withheld from the distribution (Form 1099-R). If you make traditional TSP contributions from tax-exempt pay, those contributions will be kept separate from the rest of your traditional TSP money so that you won’t ever have to pay taxes on it. This includes most sources of retirement income. Note that tax-exempt contributions to Roth are subject to the IRS elective deferral limit. With a few exceptions, if a source of income is taxable at the federal level, its taxable to Virginia as well. The earnings on those contributions are also tax-free if you meet the requirements for qualified Roth distributions. If you make Roth TSP contributions from tax-exempt pay, you never pay taxes on that money-not at the time you contribute it and not when you withdraw it. You can file your tax return as if the 1099-R form matches your actual situation, but without an official correction, you will definitely have to prove your case. The TSP will issue a separate IRS Form 1099-R for the earnings portion of the refund. Contributing tax-exempt pay for serving in a combat zone (uniformed services only) No, unfortunately, if you correct it yourself, you will hear from the 'losing' state eventually. The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. What is more, as long as the self-directed solo 401k plan allows for Roth solo 401k funds, contributions that were made to the Roth subaccount of TSP from tax-exempt pay may be transferred to the Roth designated subaccount of the self-directed solo 401k.įollowing is good language found on the the TSP site regarding the treatment of tax-exempt pay. Still had not gotten any corrected 1099-R, I got 2 Notifications in TSP.gov with the exact same 1099-Rs that I got by mail with 2 different codes. If this distribution is taxable, you may use the cost recovery method to determine the taxable portion. Thrift Savings Plan (TPS) funds may be transferred to a self-directed solo 401k. Box 1 on the 1099-R (Gross Distribution) is taxable unless the distribution is from a Pennsylvania-eligible plan or you retired after meeting the age conditions or years of service conditions of the plan. ![]()
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