Is cashing a TSP and 401 k and paying back a CSRS retirement fund income on my taxes?

[MichaelDC]

Did you take a loan out on your CSRS?

[badyke60]

Withdrew whole amount 20 years ago

[badyke60]

after quiting the Fed GOV in 97 . but got rehired in 07

[MichaelDC]

Did you withdraw the whole amount in what was called a lump sum distribution or was there some sort of agreement to pay it back?

[badyke60]

lump sum with no agreement to pay back. I quit the GOV not thinking I would ever get hired back but did 10 years later

[badyke60]

received approx 39000 but paid that back plus interest of around 42000 for a total of approx 82000

[dmertz · Accepted solution]

The paying back of CSRS sounds like a CSRS redeposit.  I believe that the redeposit becomes part of the employee cost (basis) of the CSRS pension, resulting in part of each eventual pension distribution being a nontaxable distribution of basis.  A redeposit is not reportable on your tax return.

The TSP and 401(k) distributions are reportable on your tax return.  They will be taxable and, if you are under age 59½, will be subject to an early-distribution penalty.  The fact that the money from the TSP and the 401(k) was used to fund the redeposit does not change the nature of the TSP and 401(k) distributions.  Funding the CSRS redeposit is not a rollover.