Where do I place our already 20% taxed distribution of our Thrift Savings Plan?

[Movie1]

The amount was taxed 20% upon withdrawal- for which we received a letter stating that. But it also states that the amount will be reported to the IRS by 1-31 of the following year- which is 1-31-23. so, does that mean I put the information on 2022 tax filing? Thank You !

[DoninGA]

If the amount was withdrawn in 2023 you do not report that on a 2022 tax return.  You will receive a Form 1099-R in January 2024 from the plan administrator and enter the 1099-R on your 2023 tax return next year.

[dmertz]

It sounds like this was a 2022 distribution which must be reported by entering into 2022 TurboTax the 2022 Form 1099-R that you should have received from the TSP several months ago.

[Movie1]

The 1099R received for the tax year of 2022 (form CSA 1099R) shows only box 1 Gross Distibution and box 2a Taxable amount, and of course the state tax info along with total contributions. No amount correlates to what was withdrawn on 1/13/22. This along with "This disbursement will be reported to the Internal Revenue Service (IRS) by January 31 of the year following the date of the payment" confused me. But I think it may be a red herring. On the back page I now read "This payment is considered an "eligible rollover distribution" for purposes of federal income tax withholding." 20% tax was applied to this "rollover distribution" How or where do I place this data in TurboTax? or should it be for next year?

[dmertz]

This doesn't make sense.  TSP distributions are reported on a regular Form 1099-R.  A CSA 1099-R (from OPM, not the Thrift Savings Plan) reports distributions from CSRS or FERS, not the TSP.  Regular periodic payments from CRSR or FERS are not eligible for rollover.

The 20% federal tax withholding would be present in box 4 of whatever 1099-R reports the distribution from which the 20% was withheld.  TurboTax automatically includes this amount on Form 1040 line 25b.

[SteamTrain]

....Thus....you must have some kind of an Online account with whoever handles your TSP .

Log into your TSP access point and see if you can find a PDF download of the actual 1099-R for that distribution....or call whatever telephone number they provide to ask where it is.

While the 1099-R forms are usually available by the end of each January, many people have set themselves up for no paper mailing of documents...and must access & download those tax documents themselves thru their account login access.

[Movie1]

I agree. I did not expect a letter from the Thrift Savings Plan saying this was a Single Partial Withdrawal/Transfer.  Nor that it would be reported by next year!

I include a few snips for help

[dmertz]

The snippets are from the safe-harbor explanation drafted by the IRS for a plan to use to satisfy the statutory requirement that the plan provide a written explanation at least 30 days prior to the distribution of the options regarding a distribution that is eligible for rollover.

It seems that the CSA-1099-R you are looking at is for an entirely separate distribution having nothing to to with the TSP.  The distribution from the TSP would have been reported to you on a separate regular Form 1099-R.  Log in online to your TSP account and check for downloadable tax statements.

[Movie1]

Thank you. I followed your suggestions and discovered that the account holder did have a 1099R on line for that distribution- Now that brings me to another question- Neither of the 1099Rs has an amount for box 16 Maryland withholding. On the CSA-1099R with the yearly amount it does have Maryland state tax withheld, but does not have MD tax distribution. Do I leave it blank?

[Movie1]

Thank you. I followed your suggestions and discovered that the account holder did have a 1099R on line for that distribution- Now that brings me to another question- Neither of the 1099Rs has an amount for box 16 Maryland withholding. On the CSA-1099R with the yearly amount it does have Maryland state tax withheld, but does not have MD tax distribution. Do I leave it blank?

[dmertz]

The Maryland distribution amount is the same as the federal distribution amount.  If TurboTax complains about the state tax withholding being less than the state distribution amount, enter in box 16 the same amount as is in box 1 instead of leaving it blank.  (Any amount eligible for the Maryland pension exclusion is subtracted elsewhere on Form 502.)