turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts Last Minute Biz Tax Moves! >> Event happening NOW!!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Are federal Thrift Savings Plan distributions taxable?

June 22, 2022 Bloomberg article states:
The Missouri Department of Revenue (DOR) June 17 determined in a letter ruling that withdrawals made in retirement from the Thrift Savings Plan (TSP) were “retirement benefits received from sources other than privately funded sources” for individual income tax purposes. Taxpayer, a retired federal government employee, had a pension and a TSP. The TSP was funded by both employee contributions and agency-matching employer contributions. Taxpayer inquired whether withdrawals made in retirement from the TSP counted as “retirement benefits received from sources other than privately funded sources” under the state law. The DOR determined: 1) the benefits paid to Taxpayer from ...

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

Are federal Thrift Savings Plan distributions taxable?

From MO resident income taxes.?   

Apparently not taxable by MO.....BUT that is Subject to whatever AGI limitations there were for 2023 taxes, as the ruling was made in 2022.....or.....unless the MO legislature clarified the issue in later legislation. possibly removing TSP $$ from the exemption.

 

Full text is here :

Missouri Department of Revenue (mo.gov)

_____________

Note that the ruling also describes some $$ moved into an IRA , and back into the TSP from the IRA...and those IRA $$ apparently lose the TSP exemption...even if back in the TSP.  (Sounds like a future proportional calculation nightmare)

 

But that's just my reading...again, I have no idea if the MO legislature re-defined the situation for TSPs before 2023 taxes started up.  Ask the MO dept of revenue..

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies