I had a distribution of my TSP last year. They sent two 1099-Rs. It was the entire balance. TSP did two separate 1099-Rs. Does this qualify for Special Averaging?

If your TSP distribution was the entire balance and you received two separate 1099-R forms, you might qualify for the 10-year forward averaging under special tax rules. 

 

Here's a summary of the requirements for 10-year income averaging:

1. The distribution must be from a qualified retirement plan or annuity (IRAs don't count).
2. The entire plan balance (excluding employee contributions) must be distributed in one tax year with no rollovers.
3. The participant must have been born before January 2, 1936. Beneficiaries can elect income averaging only if the participant meets this requirement.
4. The participant must have been in the plan for at least five years before the distribution (this doesn't apply to payments to beneficiaries).
5. The participant can't have used the income averaging provision for any previous distribution after 1986.
6. The distribution must be payable due to the participant's death, after reaching age 59½, due to separation from service, or after a self-employed individual becomes disabled.

 

For Additional information see below:

•  CPA Practice Advisor
•  IRS - Topic No. 412