Took a small withdrawal from my federal tsp. I am 62 and not retired. I live in nj, and read that the full withdrawal isn’t taxable, do you know?

[jmulls1920]

I’ve read that what I contributed isn’t taxable … how do I handle that in TurboTax

[fanfare]

Section 401(k) and similar plans - not an IRA.
If you made contributions:
1. On or after January 1, 1984, your contributions to your 401(k) Plan were not included as income when they were made, unless the contributions exceeded the federal elective deferral limit. As a result, you must report all distributions on your New Jersey Income Tax return because they are fully taxable;
see here: https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1.pdf

[jmulls1920]

Thanks but this is not a 401k. It’s a TSP. as such nj will not allow my contributions to reduce my income.  So your reply , while appreciated is not correct. 

[jmulls1920]

My contributions to my tsp are included in my income. So I am taxed before contributions and taxed after 

[fanfare]

what is a tsp ?

[fanfare]

• a choice of tax treatments for your contributions
  – traditional (pre-tax) contributions with tax-deferred investment earnings
  – Roth (after-tax) contributions with tax-free earnings at retirement if you satisfy the IRS requirements

If you chose Roth, it is tax- free 

otherwise it is tax-deferred just like a 401k

You are not taxed twice.

[fanfare]

If you want to treat your tsp like an IRA,

you would have to complete Worksheet C, use override, and file a paper return,

OR

Use the NJ website e-File portal  for NJ residents.

copy the amounts from the  paper TurboTax return.

That could be error-prone.

@jmulls1920 

[fanfare]

NJ may disallow your Worksheet exclusion if they notice your distribution is not from an IRA.
@jmulls1920 

[fanfare]

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[jmulls1920]

I appreciate your help but you lost me when you asked what is a tsp?  You’re guessing and I appreciate your effort but a tsp in nj is treated differently than a 401k. I hope someone in nj with experience replies. 

[fanfare]

I looked it up LOL

The bullet list is straight from the Federal Thrift Savings Plan website, with links.

@jmulls1920 

[fanfare]

see here under Contributory Plans, which confirms your position.

https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1.pdf

Do you want me to delete all my previous posts ??

[fanfare]

Just as for IRAs,  you should put the amount of tsp distribution you are excluding (100%) on Line 20b.