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New Member
posted Jun 4, 2019 2:36:10 PM

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

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1 Best answer
New Member
Jun 4, 2019 2:36:18 PM

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.


5 Replies
New Member
Jun 4, 2019 2:36:12 PM

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

New Member
Jun 4, 2019 2:36:14 PM

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

New Member
Jun 4, 2019 2:36:15 PM

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.

New Member
Jun 4, 2019 2:36:17 PM

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

New Member
Jun 4, 2019 2:36:18 PM

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.