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Yes, a TSP withdrawal has usually the same tax treatment as your federal pension.
"Federal Thrift Savings Plan (TSP). Once a taxpayer is a retiree, withdrawals from federal TSP accounts are eligible for the subtraction based on dates of service. Withdrawals prior to retirement aren’t eligible because the taxpayer must be a retiree at the time of withdrawal to be eligible for the subtraction. If the taxpayer moves money from a TSP to another type of account, the account loses its character and is no longer a federal pension. In this case, future withdrawals wouldn't be eligible for the subtraction" Publication OR-17 2019 page 64
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April 4, 2020
1:20 PM
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