topic Partial Distribution from Federal TSP Program in 2019 in Retirement tax questions

Partial Distribution from Federal TSP Program in 2019

JONROCK — Tue, 10 Mar 2020 19:00:41 GMT

My wife is a Federal Government Employee full time. She has a TSP program (Thrift Savings Plan) which she received/requested a partial distribution last year (2019). Yes, they withheld the mandatory 20% Federal Taxes in the distribution.

Here's my question (I think I know the answer already).

We are both required to be legally named on the TSP account through the Federal Government. Since the distribution was last year (2019), the 1099-R was in her name for tax purposes, along with her identifying numbers. My name does not appear on this distribution (1099-R), although I DO HAVE TO SIGN THE AUTHORIZATION for withdrawal and notarized.

OK, here's the question: We are Married filing Separately this year. We are doing this because of repayment of student loans in anticipation of lowering her income basis for repayment. I am retired and receive SS and a Pension from my local government. Since my numbers (read income) are significantly less than hers, because she is still employed full time, can I take the TSP distribution amount and add this distribution amount to my lower income on my 2019 return?

Thanks in advance for any help!

Re: Partial Distribution from Federal TSP Program in 2019

DoninGA — Tue, 10 Mar 2020 19:04:51 GMT

No, you cannot enter the funds received from the TSP distribution on your tax return since it was not your income.

The Form 1099-R and the distribution are only entered on your spouse's tax return since you are filing MFS.

Re: Partial Distribution from Federal TSP Program in 2019

dmertz — Tue, 31 Mar 2020 16:02:01 GMT

The TSP belongs your your wife and she is the recipient of the distributions, so, as DoninGA said, it's her income, not yours. The only reason that your name is associated with the TSP is because you are the beneficiary of your wife's TSP if she should die; only if she died would payments be made to you.

Re: Partial Distribution from Federal TSP Program in 2019

JONROCK — Tue, 31 Mar 2020 15:35:15 GMT

Thank You All!

Yes, thought that was the case with her TSP and her distribution, but thought I'd ask to be sure! I appreciate your help in this matter!

Thanks!

Re: Partial Distribution from Federal TSP Program in 2019

JONROCK — Tue, 31 Mar 2020 15:37:12 GMT

Thanks DoninGA! Very much appreciated! Just as I suspected on her 1099-R! Oh well, I tried! 🙂

Much appreciated!