Thrift Savings Plan withdrawal before age 59 1/2

I retired from federal civil service at age 56, with ~34 years of service. I began drawing from the federal Thrift Savings Plan (TSP) in 2019, at age 58. According to federal law, there is no penalty for early withdrawal (before age 59 1/2) in my case. How does TurboTax handle this situation?

1919

Level 15

Jan 4, 2020 3:18:12 PM

You will receive a Form 1099-R from the plan administrator later in January. On the 1099-R box 7 should be coded with a 2. The code indicates to the TurboTax program that there is an exception to the early distribution so that no penalty will be entered for the early withdrawal

2—Early distribution, exception applies (under age 59½).

New Member

Jan 4, 2020 3:26:44 PM

Thank you! This sounds too easy!!! 😀

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Thrift Savings Plan withdrawal before age 59 1/2