topic 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? in Retirement tax questions

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?

Polo225 — Tue, 10 Feb 2026 10:53:49 GMT

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

Re: 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?

fanfare — Sat, 24 Feb 2024 04:01:24 GMT

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

Re: 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?

Polo225 — Sat, 24 Feb 2024 04:07:46 GMT

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.

Re: 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?

Polo225 — Sat, 24 Feb 2024 04:09:38 GMT

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

Re: 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?

fanfare — Sat, 24 Feb 2024 06:04:10 GMT

what is a tsp ?

Re: 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?

fanfare — Sat, 24 Feb 2024 06:09:11 GMT

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.

Re: 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?

fanfare — Sat, 24 Feb 2024 06:21:01 GMT

If you want to treat your tsp like an IRA,

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

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

copy the amounts from the paper TurboTax return.

That could be error-prone.

@Polo225

Re: 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?

fanfare — Sat, 24 Feb 2024 06:26:51 GMT

NJ may disallow your Worksheet exclusion if they notice your distribution is not from an IRA.
@Polo225

Re: 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?

fanfare — Sat, 24 Feb 2024 15:21:03 GMT

[[removed]]

Re: 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?

Polo225 — Sat, 24 Feb 2024 09:33:12 GMT

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.

Re: 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?

fanfare — Sat, 24 Feb 2024 15:07:46 GMT

I looked it up LOL

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

@Polo225

Re: 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?

fanfare — Sat, 24 Feb 2024 15:20:02 GMT

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 ??

Re: 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?

fanfare — Sat, 24 Feb 2024 16:50:57 GMT

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