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Thread: Uniformed TSP, What to do with tax free???

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    Default Uniformed TSP, What to do with tax free???

    When I transitioned into Civil Service I was able to move most funds out of the uniformed TSP to the civilian side. The tax free portion would not transfer however. I still have money in the uniformed side and want to pull it out. Will I be taxed?


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  3. #2

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    Default Re: Uniformed TSP, What to do with tax free???

    If you are not yet 59 1/2 years of age, the answer is probably yes unless you roll it over to an IRA...
    I pride myself on the fact that I will never have a cheesy "uplifting" quote in my signature block...Ever!

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  5. #3

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    Default Re: Uniformed TSP, What to do with tax free???

    Quote Originally Posted by mdncn2762 View Post
    When I transitioned into Civil Service I was able to move most funds out of the uniformed TSP to the civilian side. The tax free portion would not transfer however. I still have money in the uniformed side and want to pull it out. Will I be taxed?
    There was no military TSP when I was in so I know little. I have run across things while researching my own withdrawal options over the years.

    Look at https://www.tsp.gov/publications/tspbk02.pdf page 7 Special Note for Uniformed Service Members which is dated 9/19 so may not be current. As usual for stuff on the TSP.gov site.

    Sounds like you will be taxed on earnings from the tax exempt money. To get an idea of what that amount might be, log in to your TSP account, choose Military Account and go to My Account/Account Information/activity summary. Adjust the activity period as you need. The gains should show up in the Gain or Loss column. What percentage they will withhold I know not. It will be treated as earned income.

    Good luck, don’t know if this helps or not.

    PO

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  7. #4

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    Default Re: Uniformed TSP, What to do with tax free???

    Depending on the amount of money left in the uniformed TSP and the tax you would have to pay it might be worth leaving it there, if it's an option, and increasing your CS TSP percentage to make up the difference. Or just transfer, pay the taxes and make up the difference in a year or two in your CS TSP. Once the World concurs this Covid-19 the World economy should recover and the CS&I funds should go crazy.
    May the force be with us.

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  9. #5

    Default Re: Uniformed TSP, What to do with tax free???

    TY for the feedback. Looks like I may have to pay taxes on about $883.

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