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Level 2
posted Feb 10, 2021 8:01:58 AM

Thrift Savings Plan

I have 2 1099R from Thrift Savings Plan. 1 is a Tradition TSP and other one is a Tradition Roth Plan. But i do know if a regular Roth IRA.  How can I tell

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5 Replies
Expert Alumni
Feb 10, 2021 8:23:58 AM

You should be able to identify each TSP from the distribution Code in Box 7 (Distributions from Regular (Traditional) TSPs and Roth TSPs use different codes).

 

A Regular (Traditional) TSP won't have a unique code - these accounts use the same codes as 401ks and traditional IRAs.  If the account is a Roth account, the distribution code will include "Roth" in the description. 

 

See the attached screenshot for a list of distribution codes:

 

Level 15
Feb 10, 2021 8:26:58 AM

The federal TSP is not any kind of IRA.

Level 2
Feb 10, 2021 9:02:45 AM

There are two different types of Thrift Savings Plan . One is a Traditional and the one is a Roth plan. How do I enter it , I am withdrawing from both. 

Level 2
Feb 10, 2021 9:08:24 AM

1 of the 1099R has a code 2b in line 7. So this a Roth plan?

Level 15
Feb 10, 2021 9:16:44 AM

Codes 2 and B together indicate a distribution from the designated Roth account in the TSP, not a distribution from a Roth IRA.

 

TurboTax unnecessarily asks if this distribution is from a Roth IRA even though the code B in box 7 unambiguously indicates that it is not a distribution from a Roth IRA.  This question is nothing more than a trap for the unwary and has caused nothing but problems since answering that the distribution is from a Roth IRA will cause TurboTax to later tell you that you've made an entry error without providing any useful information as to the nature of the error.